CBRE Acquires Industrious in $800M Deal, Launches New Division
CBRE has finalized an agreement to acquire prominent coworking operator Industrious for $400 million, bringing its ownership from 40% to full control. The transaction values Industrious at $800 million and is expected to close later this month. As part of the deal, CBRE will establish a new business line — Building Operations and Experience (BOE) — led by Industrious’ current CEO, Jamie Hodari, who will also become CBRE’s Chief Commercial Officer.
“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,” Hodari said.
Founded in 2012 by Jamie Hodari and Justin Stewart, Industrious has grown to operate more than 200 locations across 65 cities worldwide. The founders initially raised $1 million from 80 investors to open their first location in Chicago in 2013. By 2015, Industrious had expanded to New York City with a Brooklyn location and later moved its headquarters to Manhattan.
This acquisition builds on a partnership that began in 2021 when CBRE invested $200 million into Industrious. That funding helped the company grow quickly and sign multi-city deals with major landlords like Hines and EQ Office. Then, by 2022, Industrious went international, opening locations in Berlin, Dublin, Tokyo, and Sydney to establish itself in Asia, Europe and Australia.
Coworking Demand Continues to Grow
By late 2024, the U.S. had more than 7,500 coworking locations — a 7% jump in the number of spaces between the second and third quarters of the year. Data from CommercialEdge also shows a 4% increase in total coworking square footage during the same period.
In contrast, traditional office space still faces challenges with return-to-office policies from companies like Amazon, Dell, and JPMorgan only leading to small increases in office use, according to data from Kastle Systems and Kisi. In this uncertain environment, flexible workspaces are becoming a popular choice as businesses look for adaptable options.