CBRE has agreed a deal to acquire flexible workspace provider Industrious, which operates more than 200 locations in more than 65 cities globally.
Since late 2020, CBRE has invested in Industrious through an approximately 40% equity interest and a $100m convertible note. The company has agreed to acquire the remaining equity stake for approximately $400m in a deal reflecting an implied enterprise valuation of approximately $800m.
In conjunction with the acquisition of Industrious, which is expected to close later this month, CBRE will create a new business segment called Building Operations & Experience (BOE). CBRE said the BOE segment would “unify building operations, workplace experience and property management, positioning the company to deliver scalable, future-ready solutions for offices, data centres, warehouses and other facilities”.
The new BOE segment will be led by Jamie Hodari, Industrious’ chief executive officer and co-founder. He will also act as CBRE’s chief commercial officer with responsibility for marketing and branding activities across all CBRE businesses.
CBRE chief operating officer Vikram Kohli has also 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.
Bob Sulentic, CBRE’s chair and chief executive officer, said: “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. 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.”
Hodari added: “The global economy needs physical spaces to make it hum – safe and efficient logistics centres for our goods, magnetic offices for our teams and secure and resilient data centres for our information. Running these spaces with excellence requires sophistication at scale. 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.”
