Coworking Firm Expands in San Fernando Valley
Coworking hub Industrious is expanding into a 22,000 sq ft space at the Sherman Oaks Galleria, set for an April opening. The move marks a post-acquisition push for the company and signals continued momentum in the broader LA basin commercial real estate market, beyond just industrial.
The new Industrious location is part of a larger partnership with landlord Douglas Emmett, which also saw the coworking firm lease 18,000 sq ft at Studio Plaza in Burbank in January and 16,000 sq ft at 150 South Rodeo Drive in Beverly Hills last April. The Sherman Oaks space at 15301 Ventura Boulevard will span two floors, offering 257 dedicated offices and 50 on-demand seats. This expansion follows the full acquisition of Industrious by CBRE in early 2025, a deal that valued the flexible workspace provider at approximately $800 million. The acquisition led to the creation of a new CBRE business segment called Building Operations & Experience (BOE), which is led by Industrious co-founder Jamie Hodari and integrates property management and workplace experience services. The move into the San Fernando Valley comes as the submarket's office vacancy rate sits at 13.6% as of the second quarter of 2025, with an availability rate of 17.8%, offering tenants significant options. This particular submarket has seen modest tenant demand with a net absorption of 55,500 sq ft over the past year. Greater Los Angeles leads the nation in coworking spaces, with 338 active locations by the end of Q4 2025, up from 304 in the first quarter of the year. The total coworking footprint in the LA metro area surpassed 7.4 million square feet in Q4 2025. This growth is happening in a market where open desk coworking rates increased by 16% to an average of $185 per month in early 2025. The Sherman Oaks Galleria, owned by Douglas Emmett since 1997, is a notable mixed-use property with 700,000 sq ft of office space and 300,000 sq ft of retail. The landlord has been active, securing a $300 million refinance for the property in late 2021 from MetLife. While the office and coworking markets are seeing movement, the San Fernando Valley's industrial market presents a much tighter picture. At the end of 2025, the industrial vacancy rate was a low 4.6%, though this was an increase from the previous year. This contrasts sharply with the area's office market, highlighting differing supply and demand dynamics across commercial property types.
