JLL arranges full floor agreement for Industrious at 860 Broadway

JLL has arranged a full floor deal for global flexible workplace company, Industrious, at 860 Broadway, the redeveloped six-story office building at the heart of New York’s Silicon Alley in Midtown South.

Industrious Union Square on Broadway will comprise 13,815 square feet across the entire top floor of the property owned by Gordon Property Group, LLC. It is slated to open in late 2023.

A workplace-as-a-service company with locations in 65 cities around the world, Industrious has grown its footprint by 60% in the past year as demand for flexible workspace grows. Industrious Union Square on Broadway will provide private offices, shared workspace areas, and conference rooms overlooking the bustling Union Square.

Built in 1926 and once home to Andy Warhol’s Factory studio and artisan hangout, the building was fully renovated by Gordon Property Group in 2019. Warhol’s original office now serves as a third-floor conference room, and the available office space in the building features wood floors, modern kitchen and pantry spaces, high ceilings and natural light from large windows overlooking Union Square.

Steps from the Union Square transit hub and the neighborhood’s numerous restaurants and shopping options, 860 Broadway is home to new media, technology and service firms, including global software company, Kaltura, digital transformation consultancy Silverline, and leading architectural design firm Selldorf Architects.

JLL executive vice president Seth Hecht and associate Thomas Swartz represented Gordon Property Group in the transaction. Cushman & Wakefield managing directors Justin Halpern and Ed Wartels represented Industrious.

Tim Gordon, managing director of Gordon Property Group, said, “We are thrilled to welcome Industrious to 860 Broadway, one of the buildings in our unique portfolio of properties in the vibrant Union Square area that benefit from our commitment to providing best-in-class environments for employers competing for talent in a very tight market.”

“We are excited to expand our workplace footprint in the sought-after Midtown South neighborhood," said Doug Feinberg, Senior Director of Real Estate at Industrious. “Located in highly-accessible Union Square and overlooking the beautiful park, Industrious Union Square on Broadway will offer an idyllic location that suits the complex needs of working professionals and supports highly distributed companies with a desirable outpost in Manhattan.”

According to JLL’s Q3 2022 office report, tenants continue to take advantage of the bifurcation between prime and commodity space. With the post-COVID leasing stalemate ending, more companies are choosing to relocate to better quality space and take on longer lease terms. This quarter, relocations accounted for 46% of total transaction volume, compared to a historical average of 30% pre- COVID, while term lengths signed in the quarter grew 13.5% quarter-over-quarter to an average of 8.7 years.

JLL is a leader in the New York tri-state commercial real estate market, with more than 2,600 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services.

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