Coworking operator Industrious is partnering with Holualoa Cos. to operate a coworking space at the Camelback Collective, which will occupy an entire floor of the Class A office building.
Under the agreement between Industrious and Holualoa, Industrious operates the space on behalf of Holualoa, unlike a traditional lease structure. The two are a partnership that will share in the revenue and profit from the location, Sam Segal, director of real estate at Industrious, said.
“Even before the pandemic, we saw a big shift from companies going from a traditional office lease to a hub and spoke model,” Segal said. “Covid has accelerated that shift. May and June were milestone months for Industrious.”
Segal said the company’s other three locations in the Valley, two in Scottsdale and one in Tempe, have been some of the company’s most successful, which has led Industrious to seek another location in Phoenix. The company has locations in Scottsdale Fashion Square, Old Town Scottsdale and on Mill Avenue in Tempe.
Industrious is taking over a space that had been operated by Serendipity Labs, a different coworking operator, which vacated the space over the weekend. Segal said the shift has not required much renovation, just changing the color palette and adding some of Industrious’ touches, which include a hospitality focus. Segal said Industrious is working with members of the former operator to offer them Industrious memberships and keep them in place.
The space will include 88 private offices, conference rooms, a café and lounge area and collaborative space. Members get daily complimentary breakfast and coffee and snacks.
Coworking expected to remain popular
Stan Shafer, COO of Holualoa, said the company researched a lot of coworking locations before entering into the agreement with Industrious.
“We are really delighted to have Industrious,” he said. “They are the best in class.”
Shafer said he expects coworking to remain a popular office option as companies decide how they will return to offices during the pandemic, and companies might be less likely to want to commit to long leases, and instead opt for a flexible option.
“We think this location will be a very successful, unique location,” he said, adding that the popularity of Industrious’ other Valley locations will also steer interest to the Camelback Collective.
Industrious will occupy about 32,000 square feet of the building, and Shafer said the company is working on other lease deals that could bring the building to full occupancy.
Camelback Collective, located at 28th Street and Camelback Road, is a joint partnership between Holualoa Cos. and LaPour Partners, and includes the 115,000-square-foot office building as well as the neighboring 160-room AC Marriott hotel.
