CBRE’s Acquisition of Industrious: A Sign of the Times?

Image courtesy of Industrious.

CBRE’s acquisition of the remaining 60% stake in Industrious, which values the coworking operator at $800 million, signals a significant shift in the commercial real estate (CRE) landscape. As consolidation continues within the flexible workspace sector, this deal underscores CBRE’s recognition of the lasting value of high-quality, adaptable work environments.

Industrious distinguishes itself as a flexible workspace provider, known for its asset-light model, wherein it partners with landlords instead of engaging in traditional leases. This approach has allowed the company to scale sustainably while avoiding the pitfalls that have challenged other operators. Unlike more volatile competitors such as WeWork, Industrious has consistently outperformed the market by offering premium spaces tailored to the evolving needs of businesses.

In-Person Work: The Resurgence of Office Demand

Although hybrid work has become integral to workplace strategies after the pandemic, I believe in-person work will remain the standard for most companies. This belief is bolstered by the uptick in office leasing activity across key global markets, indicating a renewed confidence in physical office spaces.

In the UK, developments such as St. Michael’s in Manchester—fully pre-let before completion—demonstrate strong demand for premium office environments. Similarly, London has experienced a resurgence in leasing, with flagship developments like 22 Bishopsgate attracting tenants seeking cutting-edge spaces that prioritise collaboration, sustainability, and employee well-being.

This trend is not limited to the UK; office leasing activity has also gained momentum in the US, particularly in cities like New York and San Francisco. Despite initial concerns about the future of office spaces, these markets are showing resilience. New York, for example, has recently recorded a significant increase in leasing activity, with tenants committing to both premium spaces and well-located properties that offer flexibility and modern amenities. San Francisco is witnessing similar signs of recovery as companies continue to invest in spaces that can accommodate hybrid work while fostering in-person collaboration.

Consolidation and Competition

CBRE’s acquisition of Industrious is part of a larger narrative of consolidation within the CRE and coworking sectors. The Office Group (TOG) has recently merged with Fora, strengthening its position in the European market. JLL is also enhancing its foothold with Flex by JLL, providing scalable workspace solutions supported by a global real estate leader.

Despite the challenges associated with a lease-based model, IWG remains a dominant force, expanding its brands like Regus and Spaces. Meanwhile, smaller operators are finding their niches. For instance, Colony has positioned itself as a leader in Manchester by focusing on curated, community-driven spaces that cater to specific industries and demographics. These examples illustrate that the market is dynamic, offering opportunities for innovation alongside consolidation.

The Future of Flexible Workspaces

CBRE’s full acquisition of Industrious is more than just a strategic investment; it’s a statement about the future of workspaces. The demand for flexible solutions is here to stay, but recent leasing trends suggest that flexibility and in-person work can coexist harmoniously. Instead of competing against each other, they are complementary, with physical offices serving as the foundation of broader workplace strategies.

Industrious’s success lies in its ability to create spaces that combine professionalism, flexibility, and adaptability. Under CBRE, Industrious is well-positioned to offer integrated solutions that align with the evolving needs of businesses, from startups to global enterprises.

What’s Next?

The rise in office leasing activity and the demand for flexible workspaces highlight a broader shift in workplace dynamics. Companies are not abandoning physical offices; they are reimagining them. CBRE’s acquisition of Industrious reflects this reality and signals where the industry is headed.

As workplace strategies continue to evolve, the next chapter of CRE will be characterised by innovation, consolidation, and a renewed focus on spaces that foster collaboration and connection. For those of us deeply invested in this industry, these developments serve as a clear reminder that the future of work is both exciting and dynamic—and that in-person work remains central to how businesses thrive.

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