CBRE Transitions to Full Ownership of Industrious in $800M Deal
CBRE is transitioning from a shareholder to the full owner of the coworking firm Industrious, thereby solidifying its position in the flexible office space market. The commercial real estate firm communicated plans to acquire the remaining equity in Industrious for approximately $400 million. The transaction is expected to close this month.
Since 2020, CBRE has held a 40% equity stake in Industrious and a $100 million convertible note. Together, this combined investment reflects an approximately $800 million valuation for the coworking provider, which currently operates more than 200 locations across 65 cities.
“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, CEO of CBRE.
As part of the acquisition, Industrious Co-Founder and CEO, Jamie Hodari, will transition to CBRE to head its newly established building operations and experience division. This new segment will integrate building operations, workplace experience and property management into a unified group, reflecting CBRE’s commitment to enhancing property services.
The division will oversee operations for CBRE’s extensive, 7-billion-square-foot property management portfolio, which generated approximately $20 billion in combined revenue last year, bolstered by CBRE’s strategic investments in Industrious.
CBRE executives have identified 2025 as a pivotal year for commercial real estate markets. The firm recorded 22% annual revenue growth from investment sales in the third quarter of 2024 and projects steady growth in sales and leasing volumes throughout the coming year.
Additionally, CBRE plans to open a new, 64,000-square-foot global financial investment services headquarters on Park Avenue in New York by late 2025. Designed and operated by Industrious, the office will feature a mix of CBRE office space and flexible coworking areas available to other clients. The initiative demonstrates CBRE’s continued investment in flexible workspace solutions for both enterprise clients and independent professionals.
