Macerich and Industrious Partner to Bring Hospitality-Driven Co-Working To Malls
Strategic partnership came about during Fifth Wall’s investment process with Industrious
Following our 2018 investment in Industrious, we’re pleased to share CNBC’s coverage of Fifth Wall Anchor LP Macerich and Industrious’ strategic partnership announcement, which will integrate flexible workspaces to Macerich malls around the country (the alliance makes Macerich the first major mall owner to introduce co-working on their properties).
The unique partnership came about during Fifth Wall’s investment process with Industrious, when we approached Macerich pre-investment about the concept of co-working in high-density urban retail. Our team recognized that there was a natural fit between the two organizations, given overlap in locations and desired customer base. Post-investment, Fifth Wall worked with Macerich to identify a handful of locations that would be ideal and coordinated with Industrious to shortlist properties and align on the partnership structure. From LOI to final agreement, Fifth Wall has remained actively engaged with the Industrious and Macerich teams to see this groundbreaking partnership through to the finish. We believe this is a watershed moment in retail real estate and is indicative of the type of work we can do with our Strategic LPs and our portfolio companies post-investment.
Industrious currently boasts 50 locations in 33 cities, providing flexible workspace for companies ranging from SMBs to Fortune 500 brands, with clients including Lyft, Hyatt, Pandora, Pinterest, Pfizer, Freddie Mac and more. Under the terms of the partnership, Industrious will operate co-working locations at select Macerich properties around the US, complementing retailers including Apple, lululemon, Sephora, Tesla, Nordstrom and more with a hospitality-centric workplace experience.
“Macerich is on the cutting edge when it comes to adding exciting, traffic-driving new uses to our market-dominant retail properties across the country,” said Art Coppola, CEO of Macerich. “With time-limited marquee attractions like Candytopia, luxury fitness/wellness concepts, destination restaurants and appealing first-to-market digitally native brands, our well-situated centers are high street, town square locations where shoppers, retailers and brands absolutely want to be. Our settings deliver top-tier, built-in amenities for today’s professionals, which is why a partnership with experience-focused Industrious makes so much sense.”
The first Industrious location in the Macerich partnership is set to open in January 2019 at Scottsdale Fashion Square, a marquis Macerich property housing luxury brands such as Gucci, Cartier, Bottega Veneta, Bulgari, Prada, Salvatore Ferragamo, Burberry and more. In a press release issued by Macerich, the company noted that the “decision to partner together was ultimately was based on two factors: a shared commitment to high-end experiences and Industrious’ proven track record of strong financial performance across its nationwide network of locations.”
“Our relationship represents a bold step that combines our vision for the future of the workplace with Macerich’s vision for the future of the retail experience, and allows us to jointly deliver superior programming, services and amenities beginning at Scottsdale Fashion Square,” said Jamie Hodari, CEO of Industrious. “We look forward to Scottsdale Fashion Square being the first of many successful collaborations between our two companies.”