CBRE, Largest Real Estate Firm in the World, Acquires the Rest of Industrious

By Caitlyn Hill · January 16, 2025

CBRE Group, Inc. – the world’s largest commercial real estate firm based on revenue in 2022 – has announced its acquisition of the remaining 60% stake in Industrious, a leader in flexible workspace solutions. This deal, which values Industrious at approximately $800 million, marks a significant move in the commercial real estate (CRE) sector, emphasizing the growing importance of adaptable office spaces in today’s hybrid work environment.

CBRE’s relationship with Industrious began in 2021 when the real estate giant acquired a 35% stake in the company for $200 million. At the time, CBRE integrated its own flexible-space brand, Hana, into Industrious. This partnership enabled Industrious to expand its footprint and offer clients access to innovative, adaptable office solutions, setting the stage for this full acquisition.

Unlike many of its competitors, Industrious operates on a unique profit-sharing model with building owners, as opposed to long-term lease obligations. This approach has not only insulated the company from financial risks that have troubled other co-working firms like WeWork but also made it a preferred partner for landlords. This resilience is one of the reasons CBRE chose to deepen its investment in Industrious.

As part of the acquisition, Industrious CEO Jamie Hodari will join CBRE’s senior leadership team. Industrious will continue to operate as an independent business unit, with plans for significant growth. Under CBRE’s umbrella, Industrious is well-positioned to expand its portfolio of over 200 locations across more than 65 cities, solidifying its status as a leader in the flexible workspace market.

The acquisition highlights CBRE’s strategic commitment to addressing the changing demands of the modern workforce. The hybrid work model has reshaped how businesses think about office spaces, prioritizing flexibility, cost efficiency, and employee well-being. Industrious’s model aligns seamlessly with these priorities, making it a valuable asset for CBRE as it adapts to new industry trends.

The move is a testament to the enduring relevance of flexible workspaces in the post-pandemic era. As companies look to accommodate fluctuating workforce needs, the demand for short-term, customizable office solutions continues to grow. CBRE’s acquisition of Industrious signals a strong vote of confidence in the future of this market segment.

This acquisition comes at a critical time for the CRE sector, which has faced significant challenges due to remote work trends and economic uncertainty. By doubling down on flexible office spaces, CBRE positions itself as a leader in innovation, potentially setting a precedent for other CRE firms to follow. This move could also encourage landlords to adopt more adaptive strategies, fostering a more dynamic and resilient real estate market.

CBRE’s acquisition of Industrious is more than just a business deal; it’s a strategic alignment with the future of work. By combining CBRE’s global reach with Industrious’s innovative approach, the partnership aims to redefine what flexible office solutions look like in the years to come. This bold move underscores the importance of adaptability in navigating a rapidly evolving commercial real estate landscape.

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