Co-working company Industrious signs $8M lease at Onni’s 600 Wilshire

Los Angeles /
Apr.April 11, 2016 04:47 PM

Downtown L.A.’s co-working extravaganza continues.

In the latest episode, New York-based workspace provider Industrious signed its first L.A. lease at 600 Wilshire, The Real Deal has exclusively learned.

The 10-year lease, valued at $8 million, gives Industrious 18,853 square feet of office space on the fifth floor of the building Vancouver-based Onni Group bought for $78 million in 2014. Jerome Fried and Michael Nieman of CBRE brokered the lease deal.

The DTLA space is among 25 outposts Industrious will launch by the end of the year, CEO Jamie Hodari told The Real Deal. But L.A. is “the single most exciting market” for the company, he said.

“Despite L.A.’s size, a lot of mid-sized and national businesses don’t actually have offices here,” Hodari said. “As supply grows, it will be easier for companies based in Atlanta, for instance, to be open a five-person creative office in L.A., which wasn’t possible five years ago.”

In L.A. alone, Industrious plans to open at least four locations by mid- to late-2017, including offices in Santa Monica, Hollywood, Century City and potentially Culver City.

Hodari isn’t the only one who thinks co-working will take off in L.A. Just last week, fellow co-working firm WeWork signed a 75,400-square-foot lease in Playa Vista at 12655 West Jefferson Boulevard. WeWork also plans to open two new locations in Pasadena and Culver City.

And earlier this year, Cross Campus pre-leased 30,000 square feet at 840 Apollo, one of Continental Development Corporation’s two locations in El Segundo, in addition to its space Downtown at 800 Wilshire.

Cross Campus’ DTLA location, which opens in May, will soon see competition from Industrious’ 600 Wilshire venue, which is slated to open this fall.

According to a recent report by CBRE, the demand for co-working space is so high in the Greater Los Angeles Area that overall office vacancy is decreasing.

The co-working surge in the market isn’t without consequence, however. The CBRE report attributes higher office rents to those falling vacancy rates. But for Hodari, this comes as no surprise.

“When a product takes a market by storm as quickly as co-working is, it’s typically driven by demand, and it’s the demand that’s outpacing supply,” he said. “For people like us, we’re not putting a product out there and crossing our fingers and hoping people will want it. We have a lot of data that says co-working will expand very rapidly.”


Related Articles

arrow_forward_ios
Granite CEO Michael Dardick and Industrious CEO Jamie Hodari

Industrious partners with landlords to offer tenants satellite workplaces

Industrious partners with landlords to offer tenants satellite workplaces
2450 Colorado Avenue and IWG CEO Martijn Roordink (Credit: Google Maps and Eóin Noonan/Sportsfile via Getty Images)

Co-working firm Spaces sues landlord over $5.4M in tenant improvements

Co-working firm Spaces sues landlord over $5.4M in tenant improvements
California Market Center (Credit: Brookfield)

Brookfield lawsuit: Mom-and-pop retailers unfashionably late in paying rent

Brookfield lawsuit: Mom-and-pop retailers unfashionably late in paying rent
Carmel Partners CEO Ron Zeff and Jose Huizar (Credit: Desiree Stone/Getty Images)

“Call me boss”: How Carmel Partners became ensnared in the Jose Huizar corruption case

“Call me boss”: How Carmel Partners became ensnared in the Jose Huizar corruption case
Parker Center in downtown L.A.

City Council handcuffs Parker Center redevelopment

City Council handcuffs Parker Center redevelopment
Amol Sarva and 643 Olive Street (Credit: Google Maps)

Knotel no pay: Lawsuit says company broke profit-sharing agreement

Knotel no pay: Lawsuit says company broke profit-sharing agreement
NeueHouse is preparing to open Venice co-working space

NeueHouse is preparing to open Venice co-working space

NeueHouse is preparing to open Venice co-working space
From left: Hiten Samtani, Bridgid Coulter of Blackbird, Kat Lau from Industrious and Jim Doorne of IWG

What’s next for the co-working business?

What’s next for the co-working business?
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...