Sharing a subfolder within a shared folder

My team of designers share a folder of projects. Within each project folder, I'd like to share any subfolder with a different group of developers, writers, contractors. This way the design team has access to everything, but devs, contractors etc only have access to a specific folder within each project. 

It seems to not be possible to do that currently. I get an error when I invite people to a subfolder within a shared folder. 

Is it possible? if not, will it be possible in some update? Seems like some key functionality that is missing in the collaboration setup.