C
BRE has acquired the remaining 60% stake in co-working company Industrious, valuing the firm at approximately $800 million. The deal follows CBRE's initial investment in Industrious several years ago, which saw it acquire a 35% stake for $200 million and later invest an additional $100 million to accelerate international expansion.

    As part of the deal, Industrious CEO Jamie Hodari will join CBRE's senior team, overseeing the management of over 7 billion square feet of commercial space. Industrious will remain a separate business unit within CBRE, which is reorganizing into four units: property investments, project management and advisory services, building operations and experience division.

    Industrious has grown rapidly since its inception, with over 200 locations and an annual expansion rate of 30-50 new sites. The company's business model, which involves operating co-working spaces and sharing profits with building ownership, is seen as less risky than WeWork's leasing model.

    The acquisition will enable CBRE to offer co-working services to both landlords and tenants, providing a welcome flexibility for companies looking to lure office workers back to physical spaces post-pandemic. The two companies have already partnered on a 64,000-square-foot lease at Lever House, with Industrious leading the design, buildout, and operations of the space.

    Under CBRE's ownership, Industrious is expected to accelerate its expansion plans, with Hodari predicting increased growth in the coming years.