CBRE doubles down on Industrious
with new business division

Is there a better way to kick-start the year than a game-changing acquisition? We think not. Commercial property giant CBRE is raising its stake in co-working firm, Industrious. Here’s everything you need to know.

CBRE has announced a definitive agreement to acquire its remaining 60% stake in Industrious, a leading flexible workspace operator, in a deal valuing the company at approximately $800 million. Industrious, established in 2012 and recognised as one of America’s fastest-growing companies, operates over 200 locations across 65 cities worldwide. The acquisition is certainly no surprise, given the operator has experienced remarkable growth since 2021, with revenues climbing at a compound annual rate of over 50%.

This strategic leap not only highlights the surging demand for flexible office solutions amid the shift back to the office but also reaffirms CBRE's commitment to redefining the future of the workplace as the company transitions from a partial stake to full ownership of Industrious. 

As part of the mega deal, CBRE will introduce a brand-new business segment, Building Operations & Experience (BOE), designed to deliver end-to-end operating solutions globally while integrating workplace experience, building operations, and property management. This initiative aims to provide innovative, scalable solutions across a wide range of facilities, including offices, data centers, and warehouses.

The newly formed BOE division will be spearheaded by Jamie Hodari, CEO and Co-founder of Industrious, alongside Vikram Kohli, CBRE’s COO, “both highly accomplished executives”, says CBRE’s Chair and CEO, Bob Sulentic. The BOE division will unite CBRE’s Enterprise Facilities Management, Local Facilities Management, Property Management, and Industrious into a single, cohesive entity, streamlining operations and enhancing service delivery across the board.

This fruitful partnership is certainly not a new one. CBRE has long been an investor in Industrious since late 2020, holding a 40% equity stake along with a $100 million convertible note. Now, the remaining equity stake will be acquired for approximately $400 million, with the transaction expected to close later this month. 

Bob further commented on the promising acquisition:

“The advancements we’ve announced today support our strategy of investing in resilient businesses that benefit from secular tailwinds, creating new and differentiated products and continually improving the capabilities of our leadership team,” said Bob Sulentic, CBRE’s chair and chief executive officer.

Hodari, now stepping into the expanded role of CEO of Advisory Services and in charge of driving growth for CBRE’s newest segment, remarks, “I’m thrilled to be joining [CBRE] — not just because of how great it already is, but because of the opportunity ahead of us. I believe the new Building Operations & Experience segment will transform how buildings are operated, creating immense value for building users and owners.”

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