CBRE Group has acquired a 35 per cent stake in Industrious, a leading provider of premium flexible workplace solutions in the United States.
The global commercial real estate services and investment firm is now the largest shareholder of Industrious, which has more than 100 locations in 50 US cities, and in coming weeks, CBRE is expected to acquire an additional five per cent of the business.
CBRE acquired its 35 per cent ownership in Industrious in the form of primary and secondary shares. The consideration includes approximately $200 million in cash and the transfer of CBRE’s flexible-space solutions offering, Hana, which will be merged into Industrious.
The move significantly increases CBRE’s participation in the flexible workplace sector and positions the company to meet rising demand from occupiers for agile space solutions – a trend that is being accelerated by the Covid-19 pandemic.
Under the agreement, two CBRE executives – President & CEO Bob Sulentic and Global Chief Investment Officer Emma Giamartino – will join Industrious’ Board of Directors.
Sulentic said: “Our investment in Industrious is consistent with our view that flexible office space is playing an increasingly central role in companies’ occupancy strategies and aligns us with an exceptional operator and an outstanding leadership team that is executing a great strategy. We have been building our Hana flex-space business expressly to meet the flex-space opportunity and Industrious now enables us to capitalise on it at scale with a portfolio of well-situated units in key markets.”
Jamie Hodari, Co-Founder and CEO of Industrious commented: “Industrious is committed to being the voice that matters most in the future of work, and we share a vision with CBRE for delivering market-leading workplace experiences on a global scale.
“This investment grew out of a shared understanding that neither of our organisations can fulfill that vision alone. It’s a tremendous moment for Industrious to get this vote of confidence, and we look forward to expanding what we can do for our customers while keeping the same commitment to the highest customer satisfaction in the industry.”