CBRE’s Industrious: Leading the Growth in Flexible Office Space

The flexible office market is experiencing significant growth, and CBRE’s acquisition of Industrious in January 2025 positions the company as a key player in this evolving landscape. While the traditional office sector navigates the challenges of post-pandemic work models, flexible office solutions, including coworking spaces, are gaining traction.

CBRE Acquires Industrious

In January 2025, commercial real estate giant CBRE acquired Industrious, a flexible office company founded in 2013. CBRE highlighted Industrious’ success as a result of continuous investment in workplace understanding and operational improvements.

Impressive Growth and Expansion

Industrious demonstrated substantial growth in 2025, increasing its global footprint by 58% compared to 2024. As of early 2026, the company operates over 250 locations in more than 100 cities. Projections indicate a 100% growth in new signings for 2026.

Market Position and Competition

Industrious currently ranks as the third-largest player in the flexible office sector, measured by the number of spaces and total square footage. It trails behind International Workplace Group (Regus) and WeWork. The global flexible office market is projected to grow significantly, from $54.59 billion in 2025 to $147.2 billion by 2033.

Demand Drivers and the Evolving Workplace

The demand for flexible office spaces is driven by several factors. Companies are seeking to enhance the workplace experience for employees, particularly those not based at headquarters. Jamie Hodari, founder and CEO of Industrious, notes that companies desire to provide smaller and midsize offices with the same quality as their headquarters to retain talent.

Strategic Location Choices

Industrious is strategically opening new workspaces in neighborhoods rather than solely focusing on central business districts, catering to employees who prefer shorter commutes and local amenities.

Asset-Light Business Model

Industrious employs an “asset-light” business model, operating more like a hotel management company than a traditional landlord. Instead of renting entire buildings, Industrious enters into management agreements with landlords, sharing profits and risks. This approach provides resilience during economic downturns by avoiding long-term lease commitments.

Hospitality-Focused Approach

Industrious differentiates itself through a hospitality-focused environment, creating spaces that resemble boutique hotels rather than conventional offices. This attracts a diverse range of tenants and appeals to landlords seeking to revitalize underutilized properties.

Future Outlook and Potential Risks

While Industrious is currently benefiting from positive trends in the office market, the flexible office sector can be sensitive to economic fluctuations. Hodari acknowledges that flexible office spaces tend to experience larger declines during recessions compared to long-term leases.