Is CBRE’s Investment in Industrious a Sign of Where Things Are Headed in the Office Sector?
Originally published by Patricia Kirk on March 8, 2021 for WealthManagement.com.
Commercial real estate services firm CBRE has just invested $200 million to acquire a 35 percent share of flexible workspace operator Industrious, with plans to purchase another 5 percent in the near future, making CBRE Industrious’ largest shareholder.
According to Bloomberg, Industrious, which now has more than 100 locations in 50 U.S. cities, plus Singapore, is already backed by approximately $200 million from other investors, including Brookfield Properties.
As part of the deal, CBRE is merging its own flexible workspace operation, CBRE Hana, with Industrious. When the transaction closes, 10 CBRE U.S. and U.K. Hana locations will be operated by Industrious.
“CBRE’s significant investment in Industrious underscores its commitment to flex (office solutions),” says Hana CEO Andrew Kupiec, noting that recent CBRE surveys revealed that 86 percent of the firm’s occupier clients, including some of the world’s largest global corporations, plan to incorporate flexible space into their real estate strategies. Kupiec has been charged with overseeing CBRE’s relationship with Industrious.