CBRE increases stake in flex brand Industrious to $330m
The real estate services provider has invested a further $100m in the premium flexible workspace brand.
CBRE invested about $230m in Industrious in late 2020 and early 2021, merging its own flexible space brand Hana into the operator.
The new investment, in the form of a convertible preferred-equity security, reflects CBRE’s “strong belief” in Industrious’ ability to capture a growing share of the flexible office market.
Emma Giamartino, chief financial and investment officer at CBRE, said: “Industrious’ sector-leading customer satisfaction scores, outstanding management team and business model set it apart in the flex space sector.
“We are excited about the significant opportunities available to Industrious to bring its innovative, amenity-driven approach to more occupiers and investors around the world.”
Focused predominantly on the US market, Industrious intends to accelerate its international expansion and “execute key strategic growth initiatives”.
Earlier this month, Industrious announced its first international acquisitions: The Great Room in Asia and Welkin and Meraki in Continental Europe.
CBRE, which is the lead minority investor in Industrious, also cited its 2022 occupier survey, which showed that 59% of US occupiers say flex space will be a “significant part” of their portfolio within two years.
Jamie Hodari, co-founder and CEO of Industrious, said: “We’re very excited to build on our industry-defining partnership with CBRE. The investment rests on our shared understanding that there is a monumental opportunity in front of us as companies rethink their real estate strategies.
“CBRE’s investment assures we have the capital we need in the coming years to grow on a global scale to meet current and future demand for flexible space.”