CBRE Group, Inc. announced a definitive agreement to acquire Industrious National Management Company, LLC, a leading provider of flexible workplace solutions.
In conjunction with the acquisition, CBRE will create a new business segment called Building Operations & Experience (BOE). This new segment will unify building operations, workplace experience and property management, positioning CBRE to deliver scalable, future-ready solutions for offices, data centers, warehouses and other facilities. The transaction is expected to close later this month.
Since late 2020, CBRE has invested in Industrious through an approximately 40% equity interest and a $100 million convertible note. The company will acquire the remaining equity stake for approximately $400 million, reflecting an implied enterprise valuation of approximately $800 million. The transaction is expected to be immediately accretive to 2025 core EBITDA and free cash flow. The acquisition underscores CBRE’s strong conviction about Industrious’ expertise in workplace experience and operations and the long-term growth prospects for the flexible workplace market.
Industrious is known for its pioneering asset-light business model that emphasizes partnership agreements, which drive alignment with property owners. Since 2021, Industrious’ revenue has grown at a compound annual rate of more than 50%, and its footprint has grown to more than 200 units across over 65 cities. Its industry-leading customer outcomes are the result of an ongoing investment into understanding what makes for a great workplace, paired with continuous operational improvement.
The new BOE segment will be led by Jamie Hodari, Industrious’ chief executive officer and co-founder, and will consist of CBRE’s Enterprise Facilities Management, Local Facilities Management, Property Management and Industrious. This segment produced approximately $20 billion of combined revenue, including Industrious, in 2024 and comprises CBRE’s entire 7+ billion sq. ft. global property and corporate facilities management portfolio.
CBRE Chief Operating Officer Vikram Kohli has been promoted and taken on increased responsibilities. He now has the additional title of CEO, Advisory Services, with responsibility for driving growth for CBRE’s largest business segment, which spans leasing, capital markets and valuation activities. As Chief Operating Officer for CBRE, Kohli will drive company-wide strategy and ensure the company is taking maximum advantage of opportunities to collaborate, realize efficiencies and achieve positive synergies across business segments and key platform functions.
“The advancements we’ve announced today support our strategy of investing in resilient businesses that benefit from secular tailwinds, creating new and differentiated products and continually improving the capabilities of our leadership team,” said Bob Sulentic, CBRE’s chair and chief executive officer.
“Both Jamie and Vikram are highly accomplished executives. Jamie is creative, entrepreneurial and a strong strategic and operational leader. Vikram has exceptional leadership skills that include driving growth across geographies, keen financial and digital insight and a deep knowledge of our global business.”
“The global economy needs physical spaces to make it hum – safe and efficient logistics centers for our goods, magnetic offices for our teams and secure and resilient data centers for our information. Running these spaces with excellence requires sophistication at scale,” said Hodari. “I have found CBRE to be second-to-none in this respect, and I’m thrilled to be joining – not just because of how great it already is, but because of the opportunity ahead of us. I believe the new Building Operations & Experience segment will transform how buildings are operated, creating immense value for building users and owners.”
Hodari will also act as CBRE’s Chief Commercial Officer, with responsibility for marketing and branding activities across all CBRE businesses.
With today’s announcement, CBRE’s four business segments for 2025 will be: Advisory Services, Building Operations & Experience, Project Management and Real Estate Investments. The company will provide historical financial results under the new segment structure in a supplemental non-GAAP disclosure when it announces fourth-quarter 2024 earnings.
