WeWork Inc. has lost its former New York City headquarters to coworking rival Industrious.

What Happened: Industrious signed a 10-year deal to manage office space at Tower 49 in midtown Manhattan, previously occupied by WeWork, Bloomberg reported on Monday.

Industrious will oversee approximately 240,000 square feet of space across 16 floors at Kato International's 12 E. 49th St. This move follows WeWork’s recent court-approved bankruptcy exit, which allowed the company to reduce debt and offload unprofitable leases.

Industrious, which focuses on management contracts with landlords rather than leasing properties, has seen its revenue triple from 2019 to 2023. The firm has been actively scouting new locations, including former WeWork sites.

Industrious CEO Jamie Hodari stated, "We've probably considered about 70 takeovers of former WeWork space, and this is one of a very small number we've moved forward on."

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Hodari added that Industrious had been seeking a large office space in New York to experiment with new products and design concepts. The availability of WeWork's space presented an ideal opportunity. "We loved the building, loved the location, and the landlord and us were willing to put real money into it to upgrade the space," Hodari said.

Despite the global decline in office space demand post-pandemic, coworking firms like Industrious have thrived. Tenants are increasingly opting for smaller, flexible office spaces.

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Image: Shutterstock/ Tada Images

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari