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Flex appeal leading NYC office recovery

Office space provider Industrious has taken over 23,000 s/f of space at 251 West 30th Street as the company looks to bolster its footprint in New York as the flex space sector looks to lead that office rebound from the coronavirus pandemic.

Industrious is partnering with Resolution Real Estate Partners LLC to operate three floors of coworking space in the company’s building 16-story, mixed-use prewar building that were previously occupied by co-working company, Primary.

The lease is part of a plan to grow Industrious space to more than 600,000 s/f in the city as employers look for post-pandemic solutions to their office needs.

The company already provides workplaces for companies of all sizes and stages including Cisco, Lyft, Spotify, Heineken, Chipotle, Pinterest, and Salesforce.

It added more than one million square feet to its portfolio nationwide in 2020 while many of its rivals faltered as COVID upended the office sector. This is the third space Industrious has taken over from a competitor in New York City, following the openings of Industrious Bryant Park off Fifth and Industrious Brooklyn – 1000 Dean last year.

President and co-founder Justin Stewart said the company is looking to open over one million square feet this year, through both organic growth and additional competitor takeovers.

JUSTIN STEWART

“We are extremely proud to have grown our presence in New York City over this past year and solidify our commitment to the market during such a challenging time,” said Stewart.

“With the opening of Industrious West 30th Street, we can’t wait to introduce our leading workplaces to the thousands of commuters coming through some of New York’s largest transit hubs. We’re thrilled to partner with Resolution Real Estate to bring a fresh perspective to their beautiful space on West 30th Street.”

251 West 30th Street underwent a major renovation starting in 2016, and achieved a Silver LEED Certification. Building-wide tenant amenities include a lounge with barista and sandwich bar, yoga/work-out room, three full baths with showers, and secure bike storage area.

Industrious West 30th Street occupies floors three, five and six of 251 West 30th Street and features 46 private offices, conference and huddle rooms on each floor, a cafe and lounge area, and a wellness room. Private office suites range in size to accommodate teams working in groups of one or two, and up to 10.

“This is a strategic alliance with one of the country’s most skilled operators in the co-working space,” pointed out Anthony McElroy, Chief Investment Officer, Resolution Real Estate Partners LLC, which is also the building’s asset management firm.

“They know their audience well and immediately recognized the value of a meticulously renovated office building close to an important transportation hub, Hudson Yards and the High Line.”

The COVID-19 pandemic has had a substantial impact on New York City’s commercial real estate market. Many companies plan a return to the office with a hybrid approach and are searching for spaces that enable them to support distributed teams.

Among the space providers shifting strategy to meet that renewed demand, boutique co-working brand Workville this week announced its repositioning as a “full service flexible office space solution.”

Workville has opened a new 60,000 s/f location at Isaac Chetrit’s 315 West 35th Street in Midtown catering to growing teams and companies in need of hybrid or satellite offices. 

Workville has a new 60,000 s/f location.

Newly renovated and designed with COVID-19 safety guidelines in mind, Workville will provide members with move-in-ready, full-floor office spaces that ccommodate teams of 10 to 50 people. 

Workville will occupy the entire building, which is owned by the co-founders of the company, including New York City commercial real estate investors and operators Jacob Aini and Isaac Chetrit. 

SUE BERNSTOCK

“Although the pandemic forced many of our members to work from home, we have been able to maintain our relationships with them and are grateful for the trust they have in us to smartly navigate the ever-changing coworking landscape. As a result, most companies plan on returning,” said Sue Bernstock, President of Workville.

“We were already seeing demand for full-floor flex office space pre-pandemic, but demand has accelerated in recent months. Flex workspace options will be more important than ever when teams reunite, so we’re excited to add a larger flex workspace option to the Workville offering.”   

Meanwhile, co-working pioneer WeWork is set to go public later this year with an initial valuation of $9 billion.

The company – which was forced to cancel and renegotiate hundreds of leases during the peak of last year’s COVID disruption – has signed a deal with special purpose acquisition company (SPAC) BowX Acquisition Corp. to be taken public by the third quarter. The move willl provide New York City-based WeWork with approximately $1.3 billion of cash to fund future growth initiatives.

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