New York-based flexible office firm Industrious has acquired another firm in its expansion quest.
Industrious, which partners with landlords to manage office space in revenue sharing agreements, said Thursday it had acquired TechSpace, a California-based firm with seven locations. The firms declined to disclose the acquisition price. Industrious said there are no current plans to rebrand TechSpace locations.
The move signals an effort by Industrious to grow alongside its competitors, which are expanding at breakneck speed, while indications of a slowing demand for commercial office space emerge. The parent company of WeWork, which has over 400 locations, this week filed paperwork that would allow it to file for an IPO, and The Real Deal reported last week that Knotel, with more than 200 locations, is in talks for a $200 million funding round.
“Consolidation is going to accelerate as our industry matures and Industrious will continue to evaluate additional opportunities as they arise,” said Jamie Hodari, Industrious’ chief executive and co-founder.
The firm, founded in 2013, has raised $142 million, in rounds led by Fifth Wall Ventures and Riverwood Capital. It has 65 locations in about 40 U.S. cities. TechSpace is the firm’s second acquisition, following its August 2018 purchase of Chicago-based co-working company Assemble, with three locations.
TechSpace, which launched in 1997, has seven locations, including one in New York at 41 East 11th Street on Union Square. Its other posts are in California, Texas and Virginia.