CBRE Group said on Tuesday it will acquire the 60% stake it does not already own in flexible workspace provider Industrious National Management Company for $400 million.
The company said it will also create a new business segment called Building Operations & Experience, which will integrate its building operations, workplace experience, and property management.
The new unit will be headed by Jamie Hodari, Industrious’ chief executive officer and co-founder.
Industrious, founded in 2012, offers flexible workplaces at more than 200 locations in over 65 cities globally.CBRE’s increased investment in Industrious comes as the U.S. office property market shows signs of recovery after being severely impacted by the COVID-19 pandemic and the shift to remote work.
The deal values Industrious at approximately $800 million, including debt. CBRE’s previous investments in the company include a 40% equity stake as a $100 million convertible note.
CBRE also said that COO Vikram Kohli will now also hold the title of CEO of the company’s Advisory Services division.
