CBRE Group has agreed to acquire Industrious National Management Company, LLC, a provider of flexible workplace solutions in the U.S., as part of its strategy to enhance workplace services and property management offerings.
This acquisition will establish a new CBRE business segment, Building Operations & Experience (BOE), integrating workplace experience, property management, and building operations to provide scalable, future-focused solutions for offices, data centers, warehouses, and other facilities.
The transaction is expected to close later this month.
CBRE, which has held an approximately 40% equity stake in Industrious since 2020, will purchase the remaining equity for approximately $400 million, implying an enterprise valuation of $800 million.
The acquisition is anticipated to be immediately accretive to CBRE’s 2025 core EBITDA and free cash flow.
Industrious has seen remarkable growth, with its revenue increasing at a compound annual growth rate of over 50% since 2021. Its network now includes more than 200 locations across 65+ cities. Known for its innovative asset-light model, Industrious partners with property owners to align interests and enhance customer outcomes.
Jamie Hodari, Industrious’ CEO and co-founder, will lead the BOE segment, encompassing CBRE’s Enterprise Facilities Management, Local Facilities Management, Property Management, and Industrious. This new segment accounted for approximately $20 billion in revenue in 2024 and oversees CBRE’s 7+ billion sq. ft. global property and corporate facilities management portfolio.
Hodari will also take on the role of CBRE’s Chief Commercial Officer, responsible for marketing and branding across all business units.
In addition to the acquisition, CBRE Chief Operating Officer Vikram Kohli has been promoted to CEO of Advisory Services, CBRE’s largest business segment, which includes leasing, capital markets, and valuation activities. Kohli will focus on driving growth, optimizing synergies across the company, and advancing CBRE’s global strategy.
Bob Sulentic, CBRE’s chair and CEO, highlighted the importance of the acquisition and leadership changes:
“These advancements reflect our strategy of investing in resilient businesses with strong growth prospects and enhancing our leadership capabilities. Jamie and Vikram bring exceptional skills and vision that will drive success for CBRE.”
Hodari commented on his vision for the new segment:
“The global economy depends on expertly operated physical spaces. CBRE’s expertise in managing these spaces at scale is unmatched, and I am excited to join the team to transform building operations and create immense value for users and owners.”
CBRE’s business structure for 2025 will include four segments: Advisory Services, Building Operations & Experience, Project Management, and Real Estate Investments.
