CBRE has acquired 100% of Industrious. High level deal points include: 100% acquisition; $800M valuation; Jamie Hodari stays on as CEO and take on global role at CBRE overseeing 95,000 employees managing over 7,000,000,000 sqft of space. The firm will create a new segment called Building Operations & Experience – unifying building operations, workplace experience and property management services.

ICYMI: Since 2020 CBRE had bought roughly 40% of Industious, and given a $100M convertible note. The remainder of the company is being acquired for around $400M.

Global real estate giant CBRE is incorporating flexible workspace into its new global financial headquarters in Manhattan. Partnering with Industrious, the flex workspace brand will manage and market an initial 2 out of 6 floors in total. CBRE employees will have access to Industrious’ adjacent space, amenities, and events. As time goes on, CBRE will have the ability to flex up or flex down allowing the firm to either take over some of the initial Industrious space for it’s own use or (less likely) offer up more to them. ICYMI: Since 2020, CBRE has held a 35% stake in Industrious, having invested $230M in the brand.

What is being described as a "fixed-flex-HQ strategy", this is an excellent example of further adoption of flexibility into enterprise workspace planning. HQs aren’t going away, per se, but they are getting smaller and more likely being found adjacent to or in partnerships with some amount of flexible workspace that may or may not be open to the public.

Jesse Derkx shared CBRE’s H2 2024 report. It highlights a 17.5% rise in operator take-up for flexible office spaces compared to H1 2023, with London, Paris, Madrid, and Barcelona driving demand. Despite this growth, the flex market’s expansion rate has slowed, with penetration now at 2.45% of the total office market, reflecting a gap between demand and supply.

CBRE also introduced the FOMO (Finder of Market Opportunities) tool to help operators pinpoint high-demand areas and guide investment. Management agreements continue to play a key role in expanding flex offerings, enabling operators and landlords to collaborate for mutual benefit.

This new FOMO tool is a great resource for those building owners that are afraid of another type of FOMO (fear of missing out) when it comes to positioning their assets for flex.

CBRE‘s UK Flex Market Update 2024 highlights the continued growth and maturity of flexible workspaces across major UK cities, driven by corporate demand and a shift towards high-quality offerings. Key markets like Manchester and Birmingham are seeing increased take-up in smaller, premium spaces, while London remains strong, with large occupiers benefiting from pre-let opportunities for customized setups.

The trend of “flight to quality” shows that occupiers prioritize well-designed, sustainable environments, often choosing flex spaces over conventional leases. As the market matures, we expect consolidation, with operators and landlords joining forces to create more expansive portfolios. If you’re more interested in this specific topic, we suggest you tune into our latest interview with Phil Kirschner on the TWIC Podcast.

Joe Rigby shared CBRE’s H1 Manchester highlights. It’s a lot of office CRE stuff, until slide 7. That’s where we get their Q2 Flexible Office Roundtable data. In it we see that Manchester has 1M sqft of flex space and that number is growing (actually 2 of their 3 largest deals were into flex spaces).

They also report that regional landlords are continuing to invest in flex offerings, and that demand for serviced space has continued to rise, with flexibility being a valued commodity.