Kato International is laying claim to the world’s largest flexible office location.
The landlord of Tower 49 at 12 East 49th Street is working with Industrious to expand the company’s coworking presence at the Midtown East property, the Commercial Observer reported. Industrious is growing from an already sizable 240,000 square feet to 292,000 square feet, nearly half of the 600,000-square-foot property.
The 52,000-square-foot expansion adds another two floors to the 16 Industrious already operated. The location is set to become the coworking company’s flagship location in Midtown.
Across its dozen and a half floors, Industrious will host workspaces, conference rooms and convention spaces. The two-floor addition is in service of amenity floors, while the 24th floor will be converted into a lounge for the entire building with showers and a parenting suite.
Financial details of Industrious’ expansion were not disclosed. The building is in the midst of being redeveloped, a project expected to wrap by the end of the year.
“At Tower 49, we’re showing what can happen when an owner and operator are aligned on fully reinvesting in a Midtown office experience,” Industrious president Gentry Long said in a statement.
Industrious initially inked a ten-year deal in 2024 to develop and operate 240,000 square feet at the property in place of WeWork, which was in the process of its bankruptcy proceedings. WeWork closed its 300,000-square-foot headquarters at Tower 49 a month before Industrious moved in.
The company differentiates itself from WeWork by partnering with landlords in agreements similar to those between hotel operators and building owners, rather than signing traditional leases.
Last year, CBRE agreed to acquire the remaining 60 percent stake of Industrious, four years after it acquired a 35 percent stake in the company for $200 million. A year later, CBRE invested another $100 million, geared towards accelerating international expansion.
CBRE’s subsequent investment valued the coworking company at $800 million.
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