CBRE Buys Industrious Stake; Hana to be Merged in Flex Office Deal

DALLAS – (Realty News Report) – CBRE Group has  acquired of a 35 percent interest in Industrious, a provider of flexible workplace facilities.

As part of the transaction, CBRE’s flexible-space solutions offering, Hana, will be merged into Industrious. Dallas has a Hana location, the only Hana facility in Texas.. .

CBRE is now Industrious’ largest shareholder. In addition, CBRE is expected to acquire an additional 5 percent of Industrious in the coming weeks, which would result in a 40 percent total stake.

The investment significantly increases CBRE’s participation in the flexible workplace sector and positions the company to meet rising demand from occupiers for agile space solutions — a trend that is being accelerated by the Covid-19 pandemic. Recent CBRE surveys show that 86 percent of its occupier clients, which include many of the world’s largest global corporations, plan to incorporate flex office space in their real estate strategies, and 82 percent will favor buildings that offer a flex-office component.

Many corporations view co-working outlets as a way to temporarily expand their offices without signing a long-term lease.

The co-working concepts were popularized by WeWork, which was founded in 2010. Executive suites for small businesses have been around for decades.

Industrious has more than 100 locations in more than 50 U.S. cities and specializes in asset-lite flexible workplace operating models.

Under the CBRE/Industrious agreement, two CBRE executives — President & CEO Bob Sulentic and Global Chief Investment Officer Emma Giamartino — will join Industrious’ Board of Directors.

CBRE acquired its 35% ownership in Industrious in the form of primary and secondary shares. The consideration includes approximately $200 million in cash and the transfer of Hana.

“Our investment in Industrious is consistent with our view that flexible office space is playing an increasingly central role in companies’ occupancy strategies and aligns us with an exceptional operator and an outstanding leadership team that is executing a great strategy,” Sulentic said. “We have been building our Hana flex-space business expressly to meet the flex-space opportunity and Industrious now enables us to capitalize on it at scale with a portfolio of well-situated units in key markets.”

“Industrious is committed to being the voice that matters most in the future of work, and we share a vision with CBRE for delivering market-leading workplace experiences on a global scale,” said Jamie Hodari, Co-Founder and CEO of Industrious. “This investment grew out of a shared understanding that neither of our organizations can fulfill that vision alone. It’s a tremendous moment for Industrious to get this vote of confidence, and we look forward to expanding what we can do for our customers while keeping the same commitment to the highest customer satisfaction in the industry.”

When the transaction closes, the 10 existing Hana locations in the U.S. and U.K. will be operated by Industrious.

CBRE and Industrious will also work collaboratively to develop and bring to market new innovative solutions in the flex-space sector, offering products that “will set a new standard for flexible, amenity-driven office environments,” CBRE said in a press release.

CBRE’s Andrew Kupiec, who leads the Hana business, will oversee CBRE’s day-to-day relationship with Industrious once the Hana transaction is completed in the second quarter. Kupiec will also continue as the leader of CBRE’s Host employee experience platform.


Feb. 22, 2021 Realty News Report Copyright 2021


File: CBRE Buys Industrious Stake;


Caption: Rendering of CBRE’s Hana location in Dallas. Courtesy: CBRE

File (2): Bob Sulentic.  CBRE Buys Industrious Stake; Hana to be Merged in Flex Office Deal. Emma Giamartino. Andrew Kupiec. Jamie Hodari,

Related posts

RNR Real Estate Briefs – HOU, DAL, AUS, SAT and more

Realty News Report

Former Elvis Presley Pad: Celebrity Site Redevelopment by Hines, McNair

Realty News Report

New Austin Skyscraper Sold for $580 Million

Realty News Report

Leave a Comment