CBRE has acquired a 35% stake in Industrious as the flexible workspace firm prepares for a potential initial public offering this year.
CBRE paid around $200 million in cash for primary and secondary shares and will transfer its own flexible office brand, Hana, to Industrious as part of the deal. The firm also plans on buying an additional 5% stake over the next few weeks
“We are big believers in the flexible workspace arena and see a tremendous opportunity — we have a huge global occupier business and know that more than 80% of them want to be in multi-tenant offices with flex space,” said Bob Sulentic, CEO of CBRE.
The investment makes CBRE the largest shareholder in Industrious and values the office firm at more than $600 million.
As part of the deal, Sulentic and CBRE’s global chief investment officer Emma Giamartino will join Industrious’ board.
Jamie Hodari, CEO of Industrious, says this deal proves that the company’s efforts to focus on management agreements, similar to hotel brands, has been validated.
“It’s partly why we’ve been able to spend the last year planting while others were pruning,” said Hodari.