DALLAS AND NEW YORK CITY — CBRE Group Inc. (NYSE: CBRE) has announced plans to acquire Industrious National Management Co. LLC, a flexible workspace provider. Dallas-based CBRE, which has invested in Industrious since late 2020 through roughly 40 percent equity interest and a $100 million convertible note, will purchase the remaining 60 percent equity stake for approximately $400 million, giving Industrious an overall valuation of $800 million.
Founded in 2012, New York City-based Industrious offers workplaces with private offices, suites, meeting rooms and desks. The current Industrious portfolio features approximately 200 properties across 65 cities globally. According to a press release issued by CBRE, Industrious’ revenue has grown at a compound annual rate of more than 50 percent since 2021.
In addition to the acquisition, CBRE will establish a new business segment. Dubbed Building Operations & Experience (BOE), the new segment will “unify building operations, workplace experience and property management, positioning CBRE to deliver scalable, future-ready solutions for offices, data centers, warehouses and other facilities,” according to CBRE.
Jamie Hodari, CEO and co-founder of Industrious, will lead CBRE’s BOE division, which will include CBRE’s Enterprise Facilities Management, Local Facilities Management and Property Management divisions, as well as Industrious. The new business segment comprises CBRE’s entire global property and corporate facilities management portfolio, which totals more than 7 billion square feet.
In 2018, CBRE launched Hana, a proprietary workspace concept. CBRE opened the first venue at PwC Tower at Park District in Dallas in 2019. CBRE transferred the Hana brand to Industrious in 2021.
CBRE’s acquisition of Industrious is scheduled to close later this month.
CBRE Group is the world’s largest commercial real estate services and investment firm based on 2023 revenue totals. The company has more than 130,000 employees servicing clients in more than 100 countries.
CBRE Group’s stock price closed on Monday, Jan. 13 at $123.56 per share, up from $85.43 a year ago, a 44.6 percent increase.
— Hayden Spiess