CBRE Group buys ‘Industrious,’ to create new unit in accretive deal

CBRE Group (CBRE) announced a definitive agreement to acquire Industrious National Management Company. In conjunction with the acquisition, CBRE will create a new business segment called Building Operations & Experience or BOE . This new segment will unify building operations, workplace experience and property management, positioning CBRE to deliver scalable, future-ready solutions for offices, data centers, warehouses and other facilities. The transaction is expected to close later this month…The transaction is expected to be immediately accretive to 2025 core EBITDA and free cash flow. The acquisition underscores CBRE’s strong conviction about Industrious’ expertise in workplace experience and operations and the long-term growth prospects for the flexible workplace market…The new BOE segment will be led by Jamie Hodari, Industrious’ chief executive officer and co-founder, and will consist of CBRE’s Enterprise Facilities Management, Local Facilities Management, Property Management and Industrious. This segment produced approximately $20B of combined revenue, including Industrious, in 2024 and comprises CBRE’s entire 7+ billion sq. ft. global property and corporate facilities management portfolio. CBRE Chief Operating Officer Vikram Kohli has been promoted and taken on increased responsibilities. He now has the additional title of CEO, Advisory Services, with responsibility for driving growth for CBRE’s largest business segment, which spans leasing, capital markets and valuation activities. As Chief Operating Officer for CBRE, Kohli will drive company-wide strategy and ensure the company is taking maximum advantage of opportunities to collaborate, realize efficiencies and achieve positive synergies across business segments and key platform functions…With today’s announcement, CBRE’s four business segments for 2025 will be: Advisory Services, Building Operations & Experience, Project Management and Real Estate Investments. The company will provide historical financial results under the new segment structure in a supplemental non-GAAP disclosure when it announces fourth-quarter 2024 earnings.