August 2016
Teaching Note
HBS Case Collection

Reworking Office Space: Industry City, Brooklyn

By: Arthur I Segel and Alexander W. Schultz

Format:Print
| Language:English
| Pages:15

Abstract

Jamestown is contemplating how to best lease a portion of their new development along the Brooklyn waterfront: Industry City. The 6-million-square-foot, mixed-use development is meant to accommodate Brooklyn’s growing innovation, creative, and “maker” communities. Jamestown is intrigued by the recently revived trend of “shared office space,” championed by WeWork and originated by well-known players like Regus. The case is intended to introduce the reader to the shared office market, the similarities and differences from traditional office space, and explore the underlying trends driving this change, as well as the risks to the business model. Jamestown must weigh the pros and cons of their different leasing strategies, including economic, operational, and reputational and must decide whether or not to lease the space to a traditional tenant, lease the space to a third-party shared office operator (e.g., WeWork or Regus), or develop their own shared office offering.

Keywords

Real Estate; Development; Shared Office Space; Coworking; Business Model; Collaborative Innovation and Invention; Business Offices; Leasing; Real Estate Industry

Citation

Segel, Arthur I., and Alexander W. Schultz. "Reworking Office Space: Industry City, Brooklyn." Harvard Business School Teaching Note 217-010, August 2016.