CBRE establishes its new global financial HQ within an environment widely managed by a coworking operator
In a move that underscores the growing influence of flexible workspaces in corporate strategy, CBRE Group Inc., one of the world’s largest commercial real estate services firm, has announced plans to establish its new global financial headquarters adjacent and in partnership with a coworking space.
The site, managed by coworking brand Industrious, will be located in New York City. CBRE Global Financial headquarter will span 6,000 m2.
According to the online RE media CoStar, CBRE plans to occupy four floors out of six, while the remaining two floors are used as an Industrious flexible workspace in what the two companies billed as a “unique operating model” in a “managed fixed-flex lease.” Industrious will manage the design, buildout, operations and experience of CBRE-occupied space as well as operate the adjacent Industrious flex workplace.
“The move lets CBRE share in amenities and events hosted at the adjacent Industrious workspace. Should CBRE expand its head count at the location over time, it can also eventually take back the Industrious space while in the meantime sharing in the profits generated by Industrious under a management agreement, explains Industrious CEO Jamie Hodari told CoStar News. “Typically companies run their own space on a long-term lease, or they basically have a flex provider create a space for them. This is one of the first times where an occupier has done both in a single complex.With corporations continuing to contemplate their office space needs, this type of setup will be increasingly embraced by corporate occupiers”, he says to CoStar.
The NYC building will go through a US$100 million refurbishment, including a “revitalized” lobby, ground-level public plaza and modernized building systems.
The decision to join a coworking work environment reflects a significant shift for CBRE, whose expertise lies in advising clients on commercial real estate solutions, now turning to a flexible office model for its own operations. The move could be a signal of a broader trend among major corporations opting for coworking spaces to host key operations.
The partnership between CBRE and Industrious has been years in the making. In 2021, CBRE invested $200 million to acquire a 35% stake in Industrious. This investment was followed by an additional $100 million in 2022, supporting Industrious’ ambitious global expansion.
It’s not told whether other CBRE regional headquarters, such as in Europe, will move as well in the future to coworking operated facilities.
So far, CBRE’s main global headquarter stays in Dallas, Texas.
