CBRE doubles down on flex-office provider Industrious
Frim invested fresh $100M after picking up 35% stake
CBRE cast another vote of confidence in flex-office provider Industrious, handing the co-working startup another nine-figure sum.
The company announced this week it was investing another $100 million in Industrious. Part of the investment will go towards accelerating international expansion for the co-working company, which recently announced international acquisitions in Asia and Europe.
Jamie Hodari, CEO and co-founder of Industrious, said the investment assures the company can “grow on a global scale to meet current and future demand for flexible space.”
CBRE has demonstrated its belief in Industrious before, acquiring a 35 percent stake in the company early last year. The Dallas-based firm paid about $200 million in cash for primary and secondary shares at the time, and transferred its own flexible workspace brand, Hana, to Industrious.
The latest transaction bumps CBRE’s investment in Industrious up to $330 million. The size of its stake is not clear, but the company does remain the lead minority investor in the startup.
Industrious had eyes to go public last year, going so far as to hire former General Assembly COO Liz Simon to serve in the same role at the company. But those plans never came to fruition and it’s no longer clear if Industrious plans on an IPO.
“We don’t need capital, but if timing is right and capital markets are receptive, we’ll consider our options,” Hodari told Bloomberg earlier this month.
Industrious revenue run rate is about $250 million, Bloomberg recently reported. Revenue rose 37 percent in the fourth quarter compared to the preceding quarter, 28 percentage points higher than WeWork’s revenue growth.
CBRE’s further investment in Industrious may have been swayed by its own occupier survey, which found 59 percent of occupiers saying flex space would become a “significant part” of their portfolio in the next two years.
Earlier this year, Industrious announced a new location in Hollywood, its ninth in Los Angeles. The firm signed a long-term deal for 28,000 square feet at Vanbarton Group’s 7083 Hollywood Boulevard property.