Industrious Plans New 16K-SF Beverly Hills Location

Fresh off of its acquisition by CBRE earlier this year, flex office provider Industrious is getting in on the investment activity happening in Beverly Hills with plans to open a new location in the famed enclave.

Industrious has expanded with a 16,000-square-foot space at 150 South Rodeo Drive, Commercial Observer can first report. The workspace is expected to open later this fall as the company’s first location in Beverly Hills. Santa Monica-based real estate investment trust Douglas Emmett owns the property. 

“Right now, returning to the office isn’t a question of if but how,” Liz Simon, Industrious’ chief operating officer, told Commercial Observer. “More companies are pushing their employees to come back, and the ones that are most successful understand that the experience at the office has to be worth it.”

Rather than standard lease deals, Industrious’ operations revolve around profit-sharing agreements with landlords to minimize financial risk and enhance operational flexibility. The “asset light” business model comes in stark contrast to coworking competitor WeWork, which is still clawing its way out of its late 2023 bankruptcy stemming from its commitment to long-term, expensive leases. 

Industrious operates a portfolio of over 250 locations in more than 65 cities across the globe, including in Santa Monica, Westwood, Century City and West Hollywood.

CBRE (CBRE) in early January announced that it had acquired Industrious for approximately $400 million, potentially marking a sea change for the coworking industry in the wake of WeWork (WE)’s bankruptcy and fellow workspace provider Breather’s shutter in late 2020.

Breather was ultimately acquired by Industrious the following year for just $3 million, according to reports at the time — a true dichotomy between coworking providers that were both founded in 2012.

Nick Trombola can be reached at ntrombola@commercialobserver.com.