Dallas-based real estate behemoth CBRE Group is moving forward with acquiring Industrious National Management Co., LLC, a New York-based coworking space provider.
The CBRE purchase reflects an “implied enterprise valuation of approximately $800 million” and will enable it to establish a new business segment called Building Operations & Experience (BOE).
CBRE will retain Industrious CEO and co-founder Jamie Hodari in an executive function. As part of the deal, CBRE Chief Operating Officer Vikram Kohli will be promoted to the added role of CEO of Advisory Services, one of CBRE’s four business segments.
“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… I believe the new Building Operations & Experience segment will transform how buildings are operated, creating immense value for building users and owners,” said Hodari.
Since 2020, CBRE has invested around 40% equity interest and a $100 million convertible note in Industrious.
“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 CBRE Chair and Chief Executive Officer Bob Sulentic.
“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.”
CBRE Group, Inc., which trades on the New York Stock Exchange under the ticker CBRE, is the world’s largest commercial estate services and investment firm based on 2023 revenue. The company currently employs over 130,000 people.