Real estate giant CBRE announced on Tuesday that it is acquiring the remaining stake in co-working startup Industrious at a valuation of over $800 million. Founded in New York in 2013, Industrious had raised a total of $522 million in funding from investors like Riverwood Capital and Fifth Wall Ventures. As of February 2023, the company had 583 employees.

This acquisition news is significant, especially when compared to competitor WeWork, which filed for bankruptcy in November 2023 after being valued at $47 billion. Industrious, on the other hand, experienced significant growth, with Riverwood co-founder Francisco Alvarez-Demalde stating that the company grew 24x during his firm’s investment period. Unlike WeWork, Industrious focused on partnering with property managers, moving away from capital-intensive real estate leases for new locations.

CBRE, which has been an investor in Industrious since late 2020, is now acquiring the remaining equity stake for around $400 million. This move will create a new business segment called Building Operations & Experience (BOE), led by Industrious CEO Jamie Hodari. The transition is expected to enhance core EBITDA and free cash flow for 2025.

In a blog post, Hodari expressed that joining forces with CBRE will allow Industrious to provide more resources to its members and reach a larger audience. This transition reflects Industrious’ evolution from a fun idea to a space where people can connect, share ideas, and interact beyond the confines of their screens.