DALLAS – (Realty News Report) – CBRE Group has acquired a 35 percent interest in Industrious, a leading provider of flexible workplace solutions.
As part of the agreement, CBRE’s flexible-space platform, Hana, will be merged into Industrious. Dallas hosts the only Hana location in Texas.
With this transaction, CBRE becomes Industrious’ largest shareholder. The company also expects to acquire an additional 5 percent stake in the coming weeks, which would raise its ownership to 40 percent.
The investment significantly expands CBRE’s footprint in the flexible workplace sector and positions the firm to meet growing occupant demand for agile, adaptable space — a trend accelerated by the COVID-19 pandemic. Recent CBRE surveys indicate that a large majority of occupier clients, including many of the world’s major corporations, plan to incorporate flexible office space into their real estate strategies and favor buildings that include a flex-office component.
Many corporations view coworking and flexible office solutions as a way to scale workspace temporarily without committing to long-term leases.
While modern coworking concepts were popularized by companies such as WeWork, executive suite offerings for small businesses have existed for decades. Industrious operates an asset-light model and currently has more than 100 locations across more than 50 U.S. cities.
Under the terms of the CBRE–Industrious agreement, two CBRE executives — President & CEO Bob Sulentic and Global Chief Investment Officer Emma Giamartino — will join Industrious’ Board of Directors.
CBRE’s 35 percent stake was acquired through a combination of primary and secondary share purchases, with consideration that includes approximately $200 million in cash and the transfer of the Hana business.
“Our investment in Industrious reflects our belief that flexible office space is becoming central to companies’ occupancy strategies,” Sulentic said. “This aligns us with an exceptional operator and leadership team executing a strong strategy. We have been developing Hana to address the flex-space opportunity, and Industrious enables us to scale that effort with a portfolio of well-located spaces in key markets.”
Jamie Hodari, Co-Founder and CEO of Industrious, added: “Industrious is focused on shaping the future of work, and we share a vision with CBRE to deliver market-leading workplace experiences globally. This investment reflects a shared understanding that neither organization can fully realize that vision alone. It’s a significant vote of confidence for Industrious, and we look forward to expanding what we offer to customers while maintaining our commitment to high customer satisfaction.”
When the transaction is finalized, the ten existing Hana locations in the U.S. and U.K. will be operated by Industrious.
CBRE and Industrious will collaborate to develop and bring to market new solutions in the flexible-space sector, aiming to introduce products that set higher standards for flexible, amenity-driven office environments.
Andrew Kupiec, who leads CBRE’s Hana business, will manage CBRE’s day-to-day relationship with Industrious after the Hana integration is completed in the second quarter. Kupiec will also continue to lead CBRE’s Host employee experience platform.
Feb. 22, 2021 Realty News Report. Copyright 2021.
File: CBRE Buys Industrious Stake
Caption: Rendering of CBRE’s Hana location in Dallas. Courtesy: CBRE
File (2): Bob Sulentic; Emma Giamartino; Andrew Kupiec; Jamie Hodari.