Industrious, the coworking operator backed by Benchmark Capital and other institutional investors, will open a 28,000-square-foot location at 875 Third Avenue in Midtown East. The space occupies the sixth and seventh floors of the building, which Global Holdings Management, owned by Israeli billionaire Eyal Ofer, operates.
This deal marks another expansion for Industrious across Manhattan's office market. The company operates premium coworking facilities that cater to startups, freelancers, and established companies seeking flexible workspace rather than long-term leases.
For building owners like Global Holdings, coworking partnerships address persistent office market challenges. Midtown East has struggled with elevated vacancy rates as remote work adoption persists. By leasing to Industrious, Global Holdings converts underutilized space into productive revenue-generating tenancy. The arrangement typically involves longer-term ground leases with the coworking operator, who then manages day-to-day operations and subletting.
For Industrious members, the location offers prime Midtown positioning near Grand Central Terminal and major transit hubs. The dual-floor setup allows flexibility for teams of varying sizes, from solo operators to larger groups requiring dedicated areas.
The broader coworking sector has stabilized after earlier oversupply concerns. Industrious differentiates itself through curated community experiences and integration with corporate clients, rather than competing solely on price. Its growth across Manhattan reflects demand for flexible arrangements that avoid five-year lease commitments.
Tenants benefit from month-to-month memberships without capital expenditures on buildouts or furniture. Landlords gain reliable occupancy during uncertain market conditions. The trade-off: coworking operators capture margin through member fees while landlords receive base rent plus potential revenue sharing arrangements.
The 875 Third Avenue deal tests coworking viability in Mid