- CBRE acquired 100% of Industrious for approximately $400M, valuing the co-working firm at $800M.
- The acquisition will create a new business segment, Building Operations & Experience (BOE), which will integrate Industrious.
- Industrious has grown rapidly, with a compound annual growth rate of over 50% since 2021 and over 200 locations worldwide.
- The new BOE unit will focus on improving building operations, property management, and workplace experiences across multiple sectors.
CBRE Group Inc. (CBRE), a global leader in commercial real estate services, acquired the remaining 60% of Industrious, a prominent co-working space provider, per GlobeSt.
Deal Details
The purchase, valued at $400M, means Industrious is now worth $800M. The deal is a significant move for CBRE, creating a new business segment that will aim to transform building operations and workplace experiences.
Previously, CBRE held a 40% stake in Industrious, alongside a $100M convertible note. The acquisition of the remaining share solidifies CBRE’s control and marks a new growth phase for the company.
A New Name
With the full acquisition, CBRE will launch a new business arm called Building Operations & Experience (BOE), led by Industrious co-founder and CEO Jamie Hodari. The new BOE division will focus on various services, including building operations, property management, and enhancing workplace environments.
BOE will aim to provide comprehensive solutions across multiple real estate asset classes, including office spaces, data centers, and warehouses. The combined operations of BOE, including Industrious, will help drive CBRE’s revenue growth.
Last year, its associated business units generated approximately $20B in revenue.
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Slowly But Surely
Industrious has been on a strong growth trajectory for some time, with revenues growing at a compound annual growth rate (CAGR) of over 50% since 2021.
The co-working provider now boasts more than 200 locations in over 65 cities globally. This rapid expansion positions Industrious as a key player in the modern workspace sector, complementing CBRE’s broader real estate services.
Leadership Plans
As part of the acquisition, Jamie Hodari will take on the role of Chief Commercial Officer at CBRE, overseeing marketing and branding for the new BOE segment. CBRE’s Chief Operating Officer, Vikram Kohli, has also been promoted to CEO of Advisory Services, overseeing CBRE’s core business unit, which includes capital markets, valuations, and leasing services.
Hodari expressed his excitement about the future of the new BOE segment, stating, “The global economy needs physical spaces to make it hum — safe and efficient logistics centers for our goods, magnetic offices for our teams, and secure and resilient data centers for our information. Running these spaces with excellence requires sophistication at scale.”
Why It Matters
The full acquisition of Industrious by CBRE highlights the growing demand for flexible office spaces and integrated property management solutions.
By combining its vast portfolio of real estate services with Industrious’ co-working expertise, CBRE is positioning itself to lead the charge in transforming building operations and the workplace experience, ultimately creating value for building users and owners alike.
CBRE expects the deal to close later this month, marking the beginning of its efforts to reshape the future of commercial real estate operations. more nimble, versatile retailer positions Burlington to stay competitive in an ever-changing retail market.
