CBRE Doubles Down on Co-Working with $800M Industrious Buy

CBRE has fully acquired co-working firm Industrious for $400M, boosting its total valuation to $800M.

Jordan B. & Han-Gwon Lung
January 15, 2025

Together with

Good morning. CBRE Group is doubling down on the shared-office model by acquiring the remaining 60% of Industrious, signaling renewed demand for flexible office spaces.

Today’s issue is brought to you by Boxabl. Housing meets mass production. Join the revolution.

🤫 Don’t keep us a secret: You currently have 0 referrals, only 1 away from receiving B.O.T.N Multifamily Deal Screener .

Market Snapshot

S&P 500

GSPC

5,842.91

Pct Chg:
+0.11%

FTSE NAREIT

FNER

751.53

Pct Chg:
+0.88%

10Y Treasury

TNX

4.77%

Pct Chg:
-0.018

SOFR

30-DAY AVERAGE

4.608

Pct Chg:
0.0%

*Data as of 01/14/2024 market close.

OFFICE & CO-WORKING

CBRE Buys Full Stake in Industrious, Values Co-Working Firm at $800M

CBRE said it would pay roughly $400 million to acquire the remaining equity stake in the coworking firm.

(Industrious)

CBRE Group Inc. (CBRE) has taken full ownership of co-working provider Industrious in a deal valued at $400M, propelling the firm’s total valuation to $800M.

The details: CBRE, which already held a 40% equity interest in Industrious along with a $100M convertible note since 2020, announced it will acquire the remaining equity in the coworking firm. The deal is expected to close this month, adding Industrious’ more than 200 locations across 65 cities to CBRE’s portfolio.

Why it matters: Industrious’ profit-sharing model with building owners shields it from long-term lease risks, a major downfall for WeWork. With office occupancy rebounding in premium markets and 94% of companies incorporating flexible workspaces, demand for adaptable office solutions is surging.

New unit: Industrious will anchor CBRE’s newly created Building Operations & Experience unit, which integrates property management, workplace experience, and operations. Led by Industrious CEO Jamie Hodari, the division will oversee CBRE’s $20B property management business and 7 billion square feet of real estate globally.

➥ THE TAKEAWAY

Looking ahead: The global flexible workspace market is expected to hit $67 billion by 2028, up from $33 billion in 2023. Industrious plans to ramp up its expansion beyond its current 30 to 50 new locations per year with fresh funding. CBRE’s bet on Industrious’ asset-light model puts it ahead in the co-working boom to meet the rising demand for flexible workspaces.

TOGETHER WITH BOXABL

How to Build a Home in 4 Hours

The U.S. is short 2.3 million homes, making the need for affordable, efficient housing solutions greater than ever. That’s why BOXABL rethought home construction with assembly-line technology, building homes in hours, not months.

With this breakthrough approach, BOXABL factories can make one home every four hours — ready to be shipped to its final destination. Fully equipped with plumbing, electrical, and HVAC, they offer a fast, scalable solution to housing woes. Not to mention, the company has gained the attention of investors like D.R. Horton.

And they’re not alone.

BOXABL has already built more than 700 homes, with over 190K reservations* from potential buyers. Invest in BOXABL for just 80 cents/share.

*This is a paid advertisement for Boxabl’s Regulation A offering for $3,500. Please read the offering circular. Reservations represent a non-binding indication of interest to purchase a Casita. A reservation does not require the purchase of a Casita, and there is no assurance of how many will result in actual purchases.

✍️ Editor’s Picks

Opening the field: President Biden's recent executive order accelerates AI data center development on federal land, requiring clean energy, US-made semiconductors, and fair wages.
Investing simplified: Neutral has partnered with Charles Schwab to allow investing in real estate development via SSID/CUSIP number. The Edison mass timber tower is Neutral's first offering on Charles Schwab's platform.
Legal battle: REBNY has filed a motion to block the FARE Act, which shifts broker fees from tenants to landlords, citing constitutional concerns and potential market disruptions.
Social sport: The rapid rise of pickleball is spurring real estate development, with operators like California SMASH and Life Time Group expanding to meet the demand for courts, indoor facilities, and related amenities.
Pay attention: The Opportunity Zones program, a key initiative from the Trump administration, may get an extension and possible reform, with industry insiders eager for action before the 2026 deadline.

🏘️ MULTIFAMILY

Westward expansion: Atlas Capital Group plans to develop 1K apartments at Row DTLA, leveraging new zoning rules to expand the prominent retail and office campus in Downtown LA.
HUD boosts: The Department of Housing and Urban Development awards $100M to cut regulatory barriers and accelerate affordable housing production across 15 states.
Put on notice: The FTC is set to file a civil lawsuit against Greystar, accusing the apartment giant of deceptive pricing by hiding fees for services like pest control and trash removal.
Everything’s bigger there: NRP Group is set to break ground on Lakeside Lofts, a $91.6M affordable housing complex in San Antonio, adding to its growing pipeline of projects across Texas.

🏭 Industrial

Big lease signing: Win.IT America signed a long-term lease for a 606.5 KSF speculative warehouse at Grand Crossing South in the City of Industry, expanding its presence to 847 KSF at the campus.
Strategic investment: KKR & Co, Inc. (KKR) and Canada's Public Sector Pension Investment Board acquired a 19.9% stake in American Electric Power's Ohio, IN, and Michigan power assets to support the growing demand for electricity from data centers.
AI infrastructure: Australia’s Macquarie agreed to invest up to $5B in Applied Digital’s high-performance computing data centers, including a $900M commitment for a North Dakota campus.
Changing hands: Aralon Properties bought a 72 KSF industrial building in San Francisco for $11.5M, after Swift Real Estate Partners failed to repay a $47.6M loan, a discount from its purchase price.

🏬 RETAIL

New retail location: Ulta Beauty (ULTA) signed a 10-year lease for 11.5 KSF at 620 Avenue of the Americas, marking its third Manhattan store with an asking rent of $175 PSF.
Retail financing: MetLife Investment Management and M&J Wilkow secured $120M in refinancing for the Town Center of Mililani, a 476.6 KSF shopping center in Oahu, HI, bought in 2014 for $227.3M.
Authentic flavors: Hürrem Hammam Wellness & Spa, the largest Turkish hammam in the US, opened in North Miami, offering a luxurious 20 KSF with traditional treatments and modern amenities.
Ambitious redesign: Sephora (LVMUY) is undertaking its largest-ever capital project, redesigning all 3K stores over the next 5 years with updates ranging from minor tweaks to major overhauls.

🏢 OFFICE

Follow the lawyers: Rialto Capital filed a foreclosure lawsuit against a Downers Grove office landlord after the property, once home to Advocate Health Care, saw occupancy plummet to 14%, leaving the landlord unable to service a $45M loan.
Optimistic sign: NYC's CRE market saw some recovery in 2024, with office sales jumping 70% to $3.6B, though caution remains due to high vacancy rates and rising cap rates.
Southern hospitality: After hitting a record 33% vacancy rate in 2024, Atlanta's office market is showing signs of stabilization, with leasing activity up 18% in Q4 and large deals gaining momentum.

🏨 HOSPITALITY

Lowest in a decade: Hotel transactions in California hit $2.5B in 2024, down 6% from 2023, the lowest sales volume since 2014, with just two transactions accounting for 20% of the total.

A MESSAGE FROM INVESTNEXT

Delayed tax documents and K-1s don't just frustrate investors – they can damage relationships and future capital raises.

InvestNext’s guide breaks down how successful firms turn tax season from an operational headache into an opportunity to showcase institutional-grade processes.

Learn the exact steps to streamline document management, maintain investor confidence, and keep your team focused on growth.

Download our tax guide now to make 2025's tax season your most efficient yet.

*Disclaimer: This is a paid advertisement. See full disclosure at the bottom of the newsletter.