Co-Working Growth Shows Strength at the Top of the Office Market

Industrious is doubling down on San Francisco’s Financial District, taking an additional 17,100 square feet at 345 California and bringing its total footprint in the tower to roughly 50,500 square feet. The CBRE-backed co-working operator says the expansion will be fully built out by mid-February, a move that comes as the building’s owner, Metropolis Investment Holdings, pushes occupancy to 85%. Despite citywide vacancy still hovering above 31%, prime buildings continue to attract tenants, and San Francisco’s net absorption turned positive again in the third quarter.

For Industrious, the decision fits its long-running strategy of measured growth in high-quality locations. Backed by CBRE—now its full owner after an $800 million valuation deal—Industrious is positioning itself as the premium workplace-experience provider for companies returning to upgraded spaces. The company is expanding across the Bay Area, including a new 19,800-square-foot lease in Burlingame, as AI and professional services firms drive demand in walkable, amenity-rich districts. CBRE CEO Bob Sulentic told investors that the broader office recovery is already underway, saying, “The leasing markets are back.”...   ...more

RSK: The small and temporary office is still growing in the office sector.