CBRE Group, Inc. has reached a deal to acquire Industrious, a leader in flexible workplace solutions. The acquisition, set to close later this month, will create a new CBRE segment called Building Operations & Experience (BOE), according to Business Wire.Â
This new unit will integrate building operations, workplace experience, and property management, positioning CBRE to better offer future-ready solutions for offices, data centers, and other facilities.
Since 2020, CBRE has held a 40% stake in Industrious, along with a $100 million convertible note. The full acquisition of the remaining equity, valued at $400 million, reflects an $800 million enterprise valuation for Industrious.Â
The deal is expected to boost CBRE’s 2025 core EBITDA and free cash flow.
Industrious has seen impressive growth, with revenue rising at over 50% annually since 2021, and now operates in more than 65 cities. Known for its asset-light business model, it partners closely with property owners to drive alignment and improve customer outcomes.
The BOE segment will be led by Industrious CEO Jamie Hodari, who will also become CBRE’s Chief Commercial Officer.Â
Vikram Kohli, CBRE’s newly promoted CEO of Advisory Services, will take on additional responsibilities to oversee the company’s strategy and drive efficiencies across all business segments.
With this acquisition, CBRE’s four main business segments for 2025 will be Advisory Services, Building Operations & Experience, Project Management, and Real Estate Investments. The company will provide updated financial results under this new structure with its Q4 2024 earnings report.
