Flex-office startup Industrious is expanding in Brooklyn with a 21,000-square-foot location at Asher Abeehsera’s 1000 Dean Street in Crown Heights.
The firm is taking over management of the space from now-defunct rival Ignitia, which shuttered in July after revenue dropped off during the pandemic, according to news reports. The space will reopen under the Industrious brand in November, the company said.
CEO Jamie Hodari said despite the soft office market, demand for “hub-and-spoke” office setups are in demand. “You’re starting to have the first wave of companies figure out a workplace plan and put it in action,” he said.
In particular, he said companies are looking for options in mixed-use residential neighborhoods so that employees can work close to home.
Abeehsera’s LIVWRK bought 1000 Dean from Brownstoner.com founder Jonathan Butler and his partners last year for $56 million. The former car service station, spanning 150,000 square feet, was converted to offices and studios by the partners, including Butler, BFC Partners and the Goldman Sachs Urban Investment Group. Berg’n beer hall occupied the ground floor, but is closed indefinitely, according to its website.
Industrious’ space will offer 52 private suites, four conference rooms, seven phone rooms, a cafe and wellness room.
Unlike co-working companies that sign master lease agreements, Industrious offers management contracts to operate shared workspaces. The Brookfield-backed company has raised $220 million from investors since 2013 and currently has around 100 locations across the U.S.
In New York City, it has seven locations totaling 360,000 square feet. In May, Industrious took over management of a space at 25 West 39th Street that was previously operated by Congregate, Thor Equities’ co-working platform.
The pandemic has upended the office market as employers wrestle with new workspace requirements. Some companies have implemented indefinite remote-work policies, impacting landlords and co-working firms. Knotel, which offers flex-office space, is facing a litany of lawsuits from landlords over unpaid rent. Regus has put 100 locations across the country into bankruptcy, including six in New York City. WeWork has pulled out of a number of locations.
Industrious hasn’t been immune: It slashed one-third of its workforce in April. But it has made efforts to guide peers by providing a “return to work” playbook.” In July, Industrious teamed up with the Wythe Hotel in Williamsburg to offer “on-demand workspaces” in vacant hotel rooms. Last month, it partnered with Cushman & Wakefield to provide flex-office space for companies rethinking their setups.