Industrious Opening Coworking Space In D.C. Multifamily Building

The two-building Illume development in Capitol Riverfront, seen from New Jersey Avenue SE.
Bisnow/Jon Banister
The two-building Illume development in Capitol Riverfront, seen from New Jersey Avenue SE.

A major residential development in D.C.'s Capitol Riverfront neighborhood is tacking on 41K SF of flex office space.

Developer Greystar brought on Industrious to run a new 530-seat coworking space at Illume, the provider announced Thursday.

The 756-unit mixed-use project at 853 New Jersey Ave. SE, which began leasing in November, was developed in partnership with Oxford Property Group and other institutional investors.

The coworking space is scheduled to open in October. When it arrives, it will compete with WeWork, which currently operates a 69K SF coworking space at nearby 80 M St. SE.

"Capitol Riverfront is the neighborhood to be in D.C. right now," said Peri Demesthias, senior director of real estate growth at Industrious. "As we continue to expand across the DC market, it's important to work with strategic landlord partners that understand the value of flex, which we absolutely accomplished here."

Industrious' business model differs from WeWork in that it signs partnership agreements with landlords rather than leasing space directly. The provider said its revenue sharing formula varies from property to property.

This is the 13th workspace for Industrious in the D.C. market. In April, the provider inked a deal with Carr Properties to manage 89K SF of coworking space across three locations, two in D.C. and one in Bethesda.

Industrious operates more than 100 locations across 50 markets. Last year, CBRE  acquired a 35% stake in Industrious for $200M.

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