CBRE, the world's biggest real estate services firm, is making a long-term bet on coworking by cutting a deal to fully acquire Industrious, a New York firm that offers flexible workplaces at more than 200 locations in more than 65 cities globally.
As part of the acquisition, Dallas-based CBRE will create a new business segment called Building Operations & Experience, the companies said Tuesday.
CBRE since 2020 has owned a 40% equity interest in Industrious. It plans to purchase the remaining equity stake for about $400 million, reflecting an implied enterprise valuation of roughly $800 million, according to the firms.
The additional investment in Industrious comes as CBRE competitors are predicting momentum in flexible office leasing this year.
The sector has witnessed significant expansion driven by evolving work preferences and technological advancements, according to real estate services firm Cushman & Wakefield in its 2025 outlook. Despite announcements by major employers calling workers back to the office, Cushman sees corporations taking on flexible offices to provide options for their workforces.
“The advancements we’ve announced today support our strategy of investing in resilient businesses that benefit from secular tailwinds, creating new and differentiated products,” Bob Sulentic, CBRE’s chair and CEO, said in the statement announcing the Industrious deal. CBRE has been diversifying its businesses, which include the world's largest commercial real estate brokerage.
CBRE’s new Building Operations & Experience unit will be led by Jamie Hodari, Industrious’ CEO and co-founder. The business produced about $20 billion of combined revenue, including Industrious, in 2024 and comprises CBRE’s entire 7 billion-plus-square-foot global property and corporate facilities management portfolio.
The transaction is expected to close later this month.