Dallas-based commercial real estate giant CBRE Group is acquiring Industrious National Management Co., a provider of flexible workplace solutions, for $400 million.
CBRE, which valued Industrious at $800 million, said that with the acquisition, it will create a new business segment called Building Operations & Experience (BOE).
“The advancements we’ve announced today support our strategy of investing in resilient businesses that benefit from secular tailwinds, creating new and differentiated products and continually improving the capabilities of our leadership team,” CBRE Chair and CEO Bob Sulentic said in a statement.
The company said the new business 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.”
Details of the deal
CBRE said the transaction is expected to close later this month.
Since late 2020, CBRE said it has invested in Industrious through a roughly 40% equity interest and a $100 million convertible note.
CBRE said it will acquire the remaining equity stake for approximately $400 million, reflecting an implied enterprise valuation of approximately $800 million. The company said the acquisition underscores its strong conviction about Industrious’ expertise in workplace experience and operations and the long-term growth prospects for the flexible workplace market.
Industrious is known for its pioneering asset-light business model that emphasizes partnership agreements, which drive alignment with property owners. Since 2021, Industrious’ revenue has grown at a compound annual rate of more than 50%, CBRE said, and its footprint has grown to more than 200 units across over 65 cities.
CBRE said its industry-leading customer outcomes are the result of an ongoing investment into understanding what makes for a great workplace, paired with continuous operational improvement.
CBRE leadership moves
CBRE’s new BOE segment will be led by Industrious Co-Founder and CEO Jamie Hodari, and will consist of CBRE’s Enterprise Facilities Management, Local Facilities Management, Property Management, and Industrious. The company said the segment produced roughly $20 billion of combined revenue, including Industrious, in 2024 and comprises CBRE’s entire 7+ billion-square-foot. global property and corporate facilities management portfolio.
CBRE Chief Operating Officer Vikram Kohli has been promoted and taken on increased responsibilities, the company added. He now has the additional title of CEO, Advisory Services, with responsibility for driving growth for CBRE’s largest business segment, which spans leasing, capital markets and valuation activities.
The company said that as chief operating officer for CBRE, Kohli will drive company-wide strategy and ensure it is taking maximum advantage of opportunities to collaborate, realize efficiencies and achieve positive synergies across business segments and key platform functions.
“Both Jamie and Vikram are highly accomplished executives,” Sulentic said. “Jamie is creative, entrepreneurial and a strong strategic and operational leader. Vikram has exceptional leadership skills that include driving growth across geographies, keen financial and digital insight and a deep knowledge of our global business.”
Hodari said CBRE is a top company in this business segment.
“The global economy needs physical spaces to make it hum—safe and efficient logistics centers for our goods, magnetic offices for our teams and secure and resilient data centers for our information. Running these spaces with excellence requires sophistication at scale,” Hodari said. “I have found CBRE to be second-to-none in this respect, and I’m thrilled to be joining—not just because of how great it already is, but because of the opportunity ahead of us.”
He expressed optimism for the future of the new combination, adding, “I believe the new Building Operations & Experience segment will transform how buildings are operated, creating immense value for building users and owners.”
Hodari also will serve as CBRE’s chief commercial officer and will be responsible for marketing and branding activities across all CBRE businesses.
Another recent acquisition and outlook
With this announcement, CBRE said its four business segments for 2025 will be: Advisory Services, Building Operations & Experience, Project Management, and Real Estate Investments.
The Industrious deal is the latest acquisition by CBRE, which last year acquired Direct Line Global, a California-based provider of mission-critical data center infrastructure for the world’s leading technology companies, from the private equity firm Guardian Capital.
“This acquisition fits squarely with our strategy of enhancing our capabilities in asset classes that benefit from secular tailwinds—in this case, the increasing digitization of the global economy,” Kohli said in a statement last year.
Kohli said Direct Line Global “perfectly complements” CBRE’s existing data center management capabilities, noting that its technical capabilities differentiate the real estate giant’s service offering.
Terms of that acquisition were not disclosed.
CBRE Group Inc., a Fortune 500 and S&P 500 company, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). It has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries.
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