The Real Deal New York

Industrious sells spare-office-space platform to CRE brokerage

Tech-focused SquareFoot, led by Jonathan Wasserstrum, purchased PivotDesk
By David Jeans | February 19, 2019 05:15PM

Jamie Hodari and Jonathan Wasserstrum

Flexible office space firm Industrious has sold a commercial subletting platform it acquired two years ago as part of its early expansion plan.

PivotDesk, an online service that allows companies to advertise free space in their offices to small firms or freelancers, was sold in recent months to SquareFoot, a Manhattan-based startup that provides commercial real estate listings and an online brokerage service, the buyer announced Tuesday.

The intermediary space between office tenants and co-working firms, which PivotDesk fills, is growing rapidly, and so far firms such as Hubble, which is backed by JLL Spark; and LiquidSpace, have each grown with successful fundraising.

Industrious’ initially purchased PivotDesk in 2017, to expand its business outside the traditional offerings of flexible office space, but decided to sell when it was approached by SquareFoot. Neither party disclosed the price of the sale.

“PivotDesk wasn’t really central to the strategic priorities of the company,” said Jamie Hodari, Industrious’ chief executive. “So when we got an offer we liked, it made sense to find a home that was a tighter fit for what PivotDesk wanted to accomplish.”

The acquisition will bolster the ranks of SquareFoot’s product, which has raised $13.4 million since it launched in 2013. The firm’s chief executive, Jonathan Wasserstrum, said the acquisition would further establish the firm as a “one-stop shop for all small- and medium-business office space needs.”