N.Y.C. co-working space Industrious set for California expansion

September 22, 2016

New York City-based workplace sharing company Industrious will open its first West Coast location in early fall in downtown Los Angeles, one of several premium co-working spaces it hopes to open in California, including the Bay Area, over the next few years.

Industrious has signed a 10-year lease for 18,853 square feet on the fifth floor at 600 Wilshire, a building owned by Onni Group.

The lease comes at a time of growth for Industrious, which recently raised $37 million in a Series B round led by Riverwood Capital, increasing its total investment to more than $50 million. The company, which has 11 locations including L.A., said the funds will finance the expansion of its high-end co-working locations in existing markets and to 12 new cities.

Co-founder and Chief Executive Jamie Hodari said he hopes to add a few more offices in Los Angeles, in addition to opening locations in San Diego and the San Francisco Bay area. Industrious’ locations around the country currently include Atlanta, Austin, Chicago, Minneapolis, Nashville and Philadelphia.

Founded in 2013, Industrious aims to set itself apart from competitors by going beyond supplying just desks and conference rooms for freelancers or individuals working remotely from an employer’s headquarters.

Hodari said his company wants to focus on hospitality, bringing in amenities usually found at larger corporations to create a pleasant and welcoming shared working space. These extra touches include reading lounges stocked with books, counters with bar stools for coffee breaks, and private rooms for nursing moms.

In addition, managers plan regular communal events to encourage networking among building tenants, creating a social and collaborative atmosphere among workers who otherwise would feel disconnected.

“A lot of co-working spaces are business services companies that are in the business of providing space. We, at our core, see ourselves as a hospitality company,” said Hodari. “Our mission is to make people excited and proud to go to work — and, as a result, our staffing model, our training, the way we treat our customers feel more like what you would expect from a hotel or great restaurant than from an office space.”

Hodari said Industrious chose L.A. over San Francisco as its first West Coast location because it wants to appeal to a wide variety of industries, not just the tech industry. Workers the company wants to draw from include those in finance, law, marketing, public relations and a range of small businesses. Some of Industrious’ current clients include Hyatt, Spotify and Pinterest.

“People in every industry, not just tech, want to love going to work, want a workplace they’re excited about, that takes care of them and where they feel welcomed,” said Hodari.

In the past year, Industrious said it has seen a surge in demand for its hospitality-focused, premium co-working spaces, as large and small businesses are facing a more dynamic business environment and an increasingly competitive market for talent.

Hodari said he was drawn to Industrious’ L.A. space because of its downtown location’s proximity to a range of industries and because of the office’s spaciousness that allows for natural light. The building was first built in 1980 and renovated in 2002 prior to Onni Group’s 2004 purchase. Industrious’ L.A. site will likely accommodate about 80 people.

Hodari said the company typically seeks out real estate that feels “edgy and cool enough that a graphic designer would love to work there but also professional and elegant enough that a law firm would feel great hosting a board meeting.”