In a sign that the look of the traditional office is changing, CBRE Group is upping its investment in a flex-space solutions provider.
The Dallas-based commercial real estate giant announced a new $100 million investment in New York flexible office and suites company Industrious, adding to hundreds of millions of dollars CBRE has poured into the company in past years as it sees more clients looking for hybrid office solutions.
“We’re excited about the significant opportunities available to Industrious to bring its innovative, amenity-driven approach to more occupiers and investors around the world,” said Emma Giamartio, CBRE’s chief financial and investment officer, in a statement.
Will help Industrious continue international expansion
The new funding, which comes in the form of a convertible preferred-equity security, will help Industrious continue the international expansion it embarked on earlier this month with new spaces in Singapore, Belgium, and France. Industrious, which operates three spaces in Dallas and one in Plano, said the funding would also help it hit “strategic growth initiatives.”
The move comes as CBRE’s recent 2022 occupier survey found that nearly 60% of U.S. occupiers see flex-space taking up more than 10% of their portfolio within the next couple of years.
$330M total investment to date
The new funding brings CBRE’s total investment in Industrious to about $330 million. In Early 2021, CBRE announced a $200 million cash deal, which saw Industrious take over its flexible office platform Hana, representing a 40% stake at the time. With the new $100 million, CBRE says it is still a minority owner of Industrious.
“The investment rests on our shared understanding that there is a monumental opportunity in front of us as companies rethink their real estate strategies,” said Jamie Hodari, co-founder and CEO at Industrious, in a statement.
The deal isn’t the only move CBRE has been making in the future of office space. At the beginning of the year, CBRE acquired Washington-based Buildingi, an occupancy planning and technology services company, incorporating it into its occupancy management team. At the time, Susan Wasmund, CBRE’s senior managing director of occupancy management, said the move would help employer find more flexible ways to return to the office.
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