CBRE Group is expanding its flexible office business via a merger with US workspace provider Industrious.
CBRE, which moved into the flexible office space sector in November 2018, said it is buying a 35% stake in Industrious for $200m in cash and merging its flexible office space unit CBRE Hana into Industrious.
The commercial real estate services firm said it also expects to buy an additional 5% stake in Industrious in the coming weeks, which would result in a 40% total stake.
As part of the merger, CBRE’s president and CEO Bob Sulentic and global CIO Emma Giamartino will join Industrious’ board of directors. Andrew Kupiec, who leads the Hana business, will oversee CBRE’s day-to-day relationship with Industrious once the Hana transaction is completed in the second quarter.
Industrious has more than 100 locations in more than 50 US cities and specialises in asset-lite flexible workplace operating models. Hana’s 10 existing Hana locations in the US and UK will be operated by Industrious.
Sulentic said: “Our investment in Industrious is consistent with our view that flexible office space is playing an increasingly central role in companies’ occupancy strategies and aligns us with an exceptional operator and an outstanding leadership team that is executing a great strategy.
“We have been building our Hana flex-space business expressly to meet the flex-space opportunity and Industrious now enables us to capitalise on it at scale with a portfolio of well-situated units in key markets.”
Jamie Hodari, co-founder and CEO of Industrious, said: “This investment grew out of a shared understanding that neither of our organisations can fulfil that vision alone.
”It’s a tremendous moment for Industrious to get this vote of confidence, and we look forward to expanding what we can do for our customers while keeping the same commitment to the highest customer satisfaction in the industry.”
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