CBRE’s Full Acquisition of Industrious: A New Chapter for Co-Working Spaces?
By: Colin Dallas-Wu
CBRE, one of the world’s largest commercial real estate services firms, recently completed its acquisition of Industrious, valuing the company at $800 million (1). This deal highlights the growing demand for flexible office space as businesses navigate a post-pandemic landscape. With this acquisition, CBRE consolidates its investment in co-working, a move/action among many that signal renewed confidence in the flex-office industry.
The Industrious Model: A Winning Approach
Unlike WeWork, which struggled under an aggressive leasing model, Industrious has built its success on a partnership-based approach. Instead of leasing office spaces and subletting them, Industrious collaborates with various landlords in a revenue-sharing model, reducing risk and ensuring financial stability (2). This strategy has allowed Industrious to expand rapidly while avoiding the same pitfalls that led to WeWork’s financial troubles.
CBRE initially invested in Industrious in 2021, acquiring a 35% stake for $200 million, followed by an additional $100 million investment in 2022 (3). With the latest transaction, CBRE fully owns Industrious, integrating it into a newly formed business segment that CBRE calls Building Operations & Experience (BOE) (4). This segment will unify CBRE's property management, workplace experience, and facilities management services, offering landlords and tenants flexible office solutions at scale (5).
A New Era for Co-Working Spaces?
The acquisition comes at a time when the demand for co-working spaces is evolving. With hybrid work models becoming more common, companies seek flexible office arrangements that accommodate fluctuating workforce needs. Industrious’ model aligns well with these changes, providing flexible workspaces that cater to businesses requiring short-term or satellite office solutions.
Moreover, CBRE’s global reach and financial backing provide Industrious with the resources it needs to accelerate its expansion. With over 200 existing locations worldwide, Industrious plans to add 30-50 locations annually (1).
Challenges and Opportunities
The success of CBRE's acquisition of Industrious relies on its ability to attract businesses back to physical workspaces while competing against traditional office leases and other co-working providers. WeWork, once the industry's frontrunner, recently emerged from bankruptcy under new ownership (6). WeWork reported a partnership with Amazon to expand by 112,000 square feet at Five Manhattan West (7).
Despite optimism surrounding the deal, significant challenges persist. The commercial office sector is still grappling with the pandemic's impact, as many companies have downsized or reassessed their real estate needs. Additionally, there's a growing demand for high-quality office spaces equipped with modern amenities, while older buildings risk obsolescence. These factors contribute to a complex landscape that CBRE must navigate to ensure the success of its acquisition.
With these challenges and opportunities in mind, what does this mean for the future of office spaces? Can Industrious maintain its unique partnership-based model under CBRE’s full ownership, or will integration into CBRE’s Building Operations & Experience segment lead to strategic shifts in its business approach?
References:
The Real Deal. (2025, January 14). CBRE acquires remaining stake of co-working firm Industrious. Retrieved from https://therealdeal.com/national/2025/01/14/cbre-acquires-remaining-stake-of-co-working-firm-industrious/
The Real Deal. (2024, July). Jamie Hodari won the flex office race by playing it safe. Retrieved from https://therealdeal.com/magazine/july-2024/jamie-hodari-won-the-flex-office-race-by-playing-it-safe/
The Real Deal. (2022, May 20). CBRE doubles down on flex-office provider Industrious. Retrieved from https://therealdeal.com/new-york/2022/05/20/cbre-doubles-down-on-flex-office-provider-industrious/
The Wall Street Journal. (2025). Giant commercial-property firm goes all in on co-working with new deal. Retrieved from https://www.wsj.com/real-estate/commercial/giant-commercial-property-firm-goes-all-in-on-co-working-with-new-deal-f0b036fe
TechCrunch. (2025, January 14). CBRE buys the remainder of the co-working company Industrious at an $800M valuation. Retrieved from https://techcrunch.com/2025/01/14/cbre-buys-remainder-of-co-working-company-industrious-at-an-800m-valuation/
Bisnow. (2024). WeWork reveals post-bankruptcy financial projections as landlords say restructuring close to 'meltdown'. Retrieved from https://www.bisnow.com/new-york/news/coworking/wework-reveals-post-bankruptcy-financials-despite-landlord-backlash-123928
Jones, S. (2025, February 7). Amazon expanding by 112K SF in Manhattan with WeWork deal. Bisnow. Retrieved from https://www.bisnow.com/new-york/news/office/wework-leases-another-112k-sf-for-amazon-127955
More about the author: Colin Dallas-Wu