CBRE Group has entered a definitive agreement to acquire Industrious National Management Co. LLC, a flexible workplace solutions provider. The company will also create a new business segment called Building Operations & Experience, which will unify building operations, workplace experience and property management.
The transaction is scheduled to close later this month. Since 2020, CBRE acquired an approximately 40 percent equity interest in Industrious and invested a $100 million convertible note. The firm will purchase the remaining stake for about $400 million, indicating an estimated enterprise value of around $800 million.
The deal is expected to immediately boost the 2025 core EBITDA and free cash flow. With today’s announcement, CBRE’s four business segments for 2025 will be Advisory Services, Building Operations & Experience, Project Management and Real Estate Investments.
New roles for the same leadership
Industrious’ co-founder & CEO, Jamie Hodari, will lead the BOE segment, which will consist of CBRE’s Enterprise Facilities Management, Local Facilities Management, Property Management and Industrious. This segment, including Industrious, generated about $20 billion in revenue in 2024.
Additionally, Hodari will also act as CBRE’s chief commercial officer. CBRE COO Vikram Kohli has also been promoted and will have the additional title of CEO, Advisory Services, with responsibility for driving growth for CBRE’s largest business segment.
Industrious uses an asset-light business model that focuses on partnership agreements with property owners. Since 2021, its revenue has grown by more than 50 percent annually. The company now operates more than 200 units in over 65 cities.