CBRE Group Inc
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Item 1. Business.
Company Overview
CBRE is the world’s largest commercial real estate services and investments firm (based on 2025 revenue). We derive competitive advantage from our considerable scale and ability to offer integrated solutions for real estate investors and occupiers in more than 100 countries. We are global market leaders in most of our business lines and drive significant growth by helping clients optimize real estate costs, value, investment returns and workplace experiences. These capabilities, combined with our extensive knowledge platform (research, data, strategy, etc.), allow us to generate superior outcomes for our clients, which included nearly 90% of Fortune 100 companies and many of the world’s largest institutional real estate investors in 2025.
Our growth opportunity is enhanced by the large and expanding total addressable market for our services. We are focused on cementing our leadership position in each of our businesses with a strategy that achieves growth across four dimensions of our business: geographies, clients, property types and services. We are committed to deploying our resources and capital in parts of our business that benefit from secular tailwinds and/or are cyclically resilient across these four dimensions. Examples of how we have expanded our participation in secularly favored and resilient businesses and enlarged our total addressable market include our acquisitions of:
•Turner & Townsend, the global project management firm, in which we hold a majority ownership interest;
•J&J Worldwide Services (now doing business as CBRE Government & Defense Services), which markedly increased the facilities-related services we provide to the U.S. federal government;
•Direct Line Global, a provider of technical facilities management services to data centers;
•Industrious National Management Company, LLC (Industrious), a flexible workplace solutions and workplace experience platform, which we fully acquired in January 2025; and
•Pearce Services, LLC (Pearce), a leading provider of advanced technical services for digital and power infrastructure, which we acquired in November 2025.
In addition, we have increased our scale in certain geographies, such as Japan and India, and asset classes that are positioned for continued growth, such as data centers. As a result, we have built a larger and more resilient services offering. Our platform – the resources and infrastructure that support our professionals and underpin our growth, such as research, marketing, data and technology – combined with our balance sheet strength, provide us access to top talent and compelling growth opportunities.
Business Segments
We serve clients and report our financial results through four business segments: Advisory Services, Building Operations & Experience, Project Management and Real Estate Investments. We also report results for a Corporate and other segment, which encompasses our platform and non-core investments.
Advisory Services
Advisory Services provides a comprehensive range of services globally, including leasing, capital markets (property sales and mortgage origination), loan servicing, and valuation. With a global network of experts that have a deep understanding of their local markets, we offer comprehensive insights and solutions across a wide range of assets, including offices, industrial and logistics, retail, multi-family and critical facilities, such as data centers, laboratories, and government facilities. Our client base is comprised of large occupiers and investors that contract for our services across multi-market portfolios as well as local market clients that we serve on a one-off basis.
We are leaders in each of our primary business lines globally (leasing, capital markets, loan servicing and valuation) and in most key local markets across the world. We leverage our platform to attract and retain top talent and provide differentiated solutions for our clients through investments in research, data, technology tools and property marketing. We also deliver end-to-end client solutions through the integration of our various services. For example, as our investor clients seek to optimize the value and performance of their assets across the real estate lifecycle, we often bring together expertise from property sales, mortgage originations, leasing and valuations as well as property management (from our Building Operations & Experience segment). While our leasing and capital markets business lines are sensitive to changes in macro-economic
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conditions, the value investors and occupiers place on our insights and execution capabilities as they adjust their real estate portfolios enables us to typically outperform the market during downcycles. Our loan servicing and valuations businesses, while a smaller part of our revenue mix, have proven to be resilient across economic cycles. For example, in the last seven years, we have organically grown our loan servicing revenue at a low-double digit compound annual growth rate.
Building Operations & Experience
We established the Building Operations & Experience (BOE) segment in 2025 to unify our building operations, workplace experience and property management capabilities across all property sectors and building types. This segment consists of CBRE’s enterprise facilities management, local facilities management, property management, digital infrastructure services and flexible workplace solutions/workplace experience business lines. This segment benefits from multiple tailwinds, most notably an increased desire for large occupiers and investors to outsource and consolidate real estate services to optimize costs, operational efficiencies and workplace experiences.
Our enterprise facilities management business typically serves large global corporations, including many of the Fortune 500, through multi-year contracts, while our local facilities management business meets the needs of smaller occupiers with more regional portfolios. We oversee the daily operations that keep buildings functioning. These include technical services (e.g., HVAC, electrical, plumbing, fire systems, elevators/escalators), which we typically self-perform, and soft services (e.g., janitorial, security, landscaping), which we often sub-contract, and integrate these with smart building solutions that increase efficiency and generate cost savings for the building occupiers. Our property management business contracts primarily with owners of office, industrial and retail properties to provide building engineering, lease administration, accounting and investment reporting services. Our digital infrastructure business line provides technical services, including services support infrastructure and facilities management services for data centers in the rapidly growing hyperscale market, as well as the colocation and enterprise markets. We provide flexible workplace solutions and workplace experience services through Industrious, a company which we fully acquired in January 2025. Its flexible offerings include dedicated offices, turnkey private suites, and on-demand access to coworking and meeting spaces at more than 250 locations in over 80 cities globally.
Project Management
Our Project Management segment delivers program management, project management and cost consultancy services globally through Turner & Townsend, our majority owned subsidiary, which we acquired in 2021. In January 2025, we merged our wholly owned CBRE project management services business into Turner & Townsend and established Project Management as a separate business segment and now own 70% of the combined entity.
We oversee the delivery of real estate, infrastructure, and natural resource projects globally, ensuring they are completed on schedule and within budget. Our scale, highly diverse capabilities and investments in technology allow us to solve our clients’ needs in managing capital projects. These range from billion-dollar-plus advanced manufacturing plants and sophisticated infrastructure projects (such as data centers, airports and power stations) to energy and sustainability solutions and repairs and refurbishments in corporate facilities. For project management activities, we oversee the execution of individual projects from start to finish, while program management entails the coordination of multiple simultaneous projects for a single client, ensuring consistent processes, reporting and quality standards. Our cost consultancy specialists leverage proprietary databases and global benchmarks to establish construction cost baselines and identify ways to reduce costs at every stage of the project lifecycle. Most work is delivered through a fee-for-service model, but we also provide services through turnkey and project management consulting agreements.
Real Estate Investments
Our Real Estate Investments (REI) segment is comprised of two business lines: investment management and real estate development.
With $155.5 billion in assets under management as of December 31, 2025, CBRE Investment Management (IM) is one of the leading investment platforms for global real assets. IM invests capital on behalf of pension funds, insurance companies, sovereign wealth funds, and other institutional investors in real estate, infrastructure, master limited partnerships and other assets. IM is also diversified across many dimensions – investment strategies, sectors, geographies, risk profiles and execution formats – and holds a co-investment in many of our investment funds and programs.
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Our real estate development business – Trammell Crow Company (TCC) – provides leading-edge development services to real estate investors, owners and occupiers. TCC has been the largest commercial real estate developer in the U.S. for more than a decade and has a track record of developing best-in-class buildings across multiple property sectors in top-tier markets. Our in-process portfolio and pipeline totaled over $29.5 billion as of December 31, 2025 and spanned all major asset classes. Our portfolio includes projects that are 100% owned or those in which we hold a co-investment interest alongside capital partners, as well as those that we develop on a fee basis, such as built-to-suits.
Corporate and Other Segment
The Corporate and other segment houses most costs associated with our platform – the resources and infrastructure that support our professionals and support our growth – that are not allocated to the client-facing business segments, including corporate leadership costs. We believe our platform – particularly our knowledge platform (research, data/technology, strategy, etc.) as well as marketing, procurement and more – provides a distinct advantage because of the level of resources and investment that our scale and financial strength allow us to make in these areas. In the Corporate segment, we also account for the value of our investments in non-core, non-controlling equity investments.
Competitive Positioning
Because of the range of services we provide and numerous markets we serve, we encounter a wide variety of competitors. These range from a handful of well-established globally diversified real estate services firms that are smaller than CBRE to many specialists that operate in specific geographies or business lines. Despite this competition, we are the market leaders in most of our business lines, with significant opportunities for continued growth. These opportunities result from the high value our clients place on our scale, in-depth expertise, technology and data-led insights, as well as their increasing preference for consolidating the number of service providers, which plays to our advantage in delivering integrated solutions globally. Our leadership across a wide spectrum of asset classes, including secular growth sectors like logistics and data centers, provides a diversified platform that is resilient across market cycles. Our strong balance sheet enables significant investments in our platform, market-leading talent recruitment and transformational M&A execution.
Human Capital
We are focused on ensuring that our people meet the needs of our clients and our business strategy. In addition to offering competitive compensation, comprehensive benefits, and a thorough onboarding process, we support professional development and growth through learning opportunities and effective talent and performance management practices. Our programs are designed to help our professionals succeed and develop into future leaders, and include webinars, live virtual and in-person training, self-paced digital learning, coaching, mentoring and on-the-job learning.
We also foster an engaging and inclusive culture where everyone is valued, supported and feels they belong, ensuring equal opportunities for success based on merit. These efforts, led by our Chief People Officer, are embedded across our business. Our workforce is enriched by individuals from a variety of backgrounds, perspectives, and work and life experiences, and we welcome all applications.
At December 31, 2025, we had more than 155,000 employees (including Turner & Townsend employees) worldwide. The costs associated with approximately 61% of CBRE employees (excluding Turner & Townsend employees) are reimbursed by clients and are mainly in our BOE segment. At December 31, 2025, approximately 18% of employees worldwide (excluding Turner & Townsend employees) were subject to collective bargaining agreements.
Our annual Corporate Responsibility Report includes public disclosures of demographics, including diversity data, for our U.S. workforce in accordance with U.S. Equal Employment Opportunity Commission requirements, and other relevant information.
Intellectual Property
We hold various trademarks and trade names worldwide. We believe the “CBRE,” “Turner & Townsend” and “Trammell Crow Company” marks are vitally important in maintaining our leadership position. We hold a license to use the “Trammell Crow Company” trade name pursuant to a license agreement with CF98, L.P., an affiliate of Crow Realty Investors, L.P., d/b/a Crow Holdings, which may be revoked if we fail to satisfy usage and quality control covenants under the license agreement. We also hold a number of issued and pending patent applications relating to proprietary technologies and intend to file additional patent applications reflecting our commitment to technology and innovation.
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Material Governmental Matters
Environment
Certain federal, state and local laws and regulations may impose liability on current or previous real property owners or operators for the cost of investigating, cleaning up or removing contamination caused by hazardous or toxic substances at a property. If contamination is present during our engagement as a property or facility manager or developer, we could be held liable for such costs as a current “operator” of a property, regardless of the legality of the acts or omissions that caused the contamination and without regard to whether we knew of, or were responsible for, the presence of such hazardous or toxic substances. We are not aware of any material noncompliance with the environmental laws or regulations currently applicable to us, and we are not the subject of any material claim for liability with respect to contamination at any location. However, these laws and regulations may discourage sales and leasing activities and mortgage lending with respect to some properties, which may adversely affect us. Environmental contamination or other environmental liabilities may also negatively affect the value of commercial real estate assets held by entities that are managed by our investment management and development services businesses.
Further, federal, state and local governments in various countries have enacted various laws, regulations and treaties governing management of climate-related risks and “greenhouse gas” (GHG) emissions, which require companies to report management practices or otherwise seek to tax, penalize or limit GHG emissions. Such regulations could lead to increased operational or compliance costs over time.
Sustainability
We have measurable sustainability goals to achieve Net Zero GHG emissions by 2040 for corporate operations, buildings managed for clients, real estate development and supply chain, and two near-term 2030 targets to reduce absolute Scope 1 and 2 emissions by 50% and reduce emissions from properties we manage for clients per square foot by 55% from a 2019 baseline. These targets have been validated by the Science Based Targets initiative (SBTi). Additional information about our science-based targets and roadmap to reduce emissions can be found in our Climate Transition Strategy at www.cbre.com/corporatesustainability and in our Corporate Responsibility Report, which outlines our approach and progress on a broader range of environmental, social and governance (ESG) issues. The contents of our website and Corporate Responsibility Report are referenced for general information only and are not incorporated in this Annual Report on Form 10-K.
Available Information
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) provides the
reader with management’s perspective on our financial condition, results of operations, liquidity and certain other factors that
may affect future results. The MD&A in this Quarterly Report on Form 10-Q (Quarterly Report) for CBRE Group, Inc. for the
three and six months ended June 30, 2026 should be read in conjunction with our consolidated financial statements and related
notes included in our 2025 Annual Report on Form 10-K (2025 Annual Report) as well as the unaudited financial statements
included elsewhere in this Quarterly Report.
In addition, the statements and assumptions in this Quarterly Report that are not statements of historical fact are
forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities
Exchange Act of 1934, each as amended, including, in particular, statements about our plans, strategies and prospects as well as
estimates of industry growth for the next quarter and beyond. For important information regarding these forward-looking
statements, please see the discussion below under the caption “Cautionary Note on Forward-Looking Statements.”
Beginning with first-quarter 2026 results, we reclassified amortization associated with MSRs (mortgage servicing
rights) to net against the related revenue (commercial mortgage origination). Historically, we have recognized the
corresponding MSR intangible asset as an amortization expense over the estimated mortgage service period. Prior year amounts
have been reclassified to conform with the 2026 presentation.
Business Environment
The strong recovery of the commercial real estate market continued in the first half of 2026. This is reflected in
increased property leasing and sales activity, particularly in the U.S. Leasing activity in the U.S. remained strong across all
property types, led by industrial and office, while global activity continued to strengthen in international markets as well.
During the second quarter, investment sales activity improved significantly in the U.S., while growth was more modest in
overseas markets. Investment activity has been supported by broad capital availability, improved occupancy market
fundamentals and narrower bid-ask spreads. Large occupiers’ growing appetite for outsourcing services continued to underpin
demand for facilities management and project management activities, while the outsized growth of Artificial Intelligence
investments and data center buildouts has fueled continued strong demand for critical infrastructure services. Through the first
half of 2026, the ongoing Middle East conflict has had limited impact on CBRE’s business except for a slowdown in
fundraising from capital sources based in the region.
Capital Allocation
We deployed $988 million in 2026 to repurchase 6,984,186 shares as of July 27, 2026.
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Results of Operations
The following table sets forth items derived from our consolidated statements of operations for the three and six
months ended June 30, 2026 and 2025 (dollars in millions):
Three Months Ended June 30, (1) | Six Months Ended June 30, (1) | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||
Revenue: | ||||||||||||||
Facilities management | $5,311 | 47.3% | $4,784 | 49.2% | $10,540 | 48.5% | $9,253 | 49.8% | ||||||
Property management | 699 | 6.2% | 646 | 6.6% | 1,383 | 6.4% | 1,232 | 6.6% | ||||||
Critical infrastructure | 676 | 6.0% | 403 | 4.1% | 1,254 | 5.8% | 741 | 4.0% | ||||||
Project management | 2,045 | 18.2% | 1,717 | 17.7% | 3,883 | 17.9% | 3,311 | 17.8% | ||||||
Advisory leasing | 1,229 | 10.9% | 995 | 10.2% | 2,264 | 10.4% | 1,857 | 10.0% | ||||||
Valuation | 220 | 2.0% | 196 | 2.0% | 420 | 1.9% | 379 | 2.0% | ||||||
Loan servicing | 121 | 1.1% | 122 | 1.3% | 241 | 1.1% | 242 | 1.3% | ||||||
Other portfolio services | 88 | 0.8% | 97 | 1.0% | 163 | 0.7% | 178 | 1.0% | ||||||
Capital markets: | ||||||||||||||
Advisory sales | 551 | 4.9% | 459 | 4.7% | 1,064 | 4.9% | 819 | 4.4% | ||||||
Commercial mortgage origination | 97 | 0.9% | 90 | 0.9% | 178 | 0.8% | 143 | 0.8% | ||||||
Investment management | 149 | 1.3% | 145 | 1.5% | 303 | 1.4% | 299 | 1.6% | ||||||
Development services | 44 | 0.4% | 70 | 0.7% | 89 | 0.4% | 149 | 0.8% | ||||||
Corporate, other and eliminations | (4) | 0.0% | (7) | (0.1)% | (29) | (0.1)% | (11) | (0.1)% | ||||||
Total revenue | 11,226 | 100.0% | 9,717 | 100.0% | 21,753 | 100.0% | 18,592 | 100.0% | ||||||
Costs and expenses: | ||||||||||||||
Pass-through costs (2) | 4,622 | 41.2% | 4,085 | 42.0% | 9,070 | 41.7% | 7,883 | 42.4% | ||||||
Cost of revenue, excluding pass-through costs | 4,518 | 40.2% | 3,857 | 39.7% | 8,745 | 40.2% | 7,324 | 39.4% | ||||||
Operating, administrative and other | 1,536 | 13.7% | 1,275 | 13.1% | 2,996 | 13.8% | 2,467 | 13.3% | ||||||
Depreciation and amortization | 190 | 1.7% | 145 | 1.5% | 372 | 1.7% | 287 | 1.5% | ||||||
Total costs and expenses | 10,866 | 96.8% | 9,362 | 96.3% | 21,183 | 97.4% | 17,961 | 96.6% | ||||||
Gain on disposition of real estate | 5 | 0.0% | 19 | 0.2% | 306 | 1.4% | 19 | 0.1% | ||||||
Operating income | 365 | 3.3% | 374 | 3.8% | 876 | 4.0% | 650 | 3.5% | ||||||
Equity income (loss) from unconsolidated subsidiaries | 4 | 0.0% | (18) | (0.2)% | (5) | 0.0% | (2) | —% | ||||||
Other income | 6 | 0.1% | 6 | 0.1% | 17 | 0.1% | 7 | 0.0% | ||||||
Interest expense, net of interest income | 60 | 0.5% | 59 | 0.6% | 119 | 0.5% | 109 | 0.6% | ||||||
Write-off of financing costs on extinguished debt | — | 0.0% | 2 | 0.0% | — | 0.0% | ||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-05-15 | Giamartino Emma E. | CFO & Chief Investment Officer | Sell | -2,250 | $130.74 | -$294,165 |
| 2026-05-05 | Doellinger Chad J | Chief Legal & Admin. Officer | Sell | -107 | $140.35 | -$15,017 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-10-22 10-Q expected by 2026-11-04 (in 84 days)
- ~2027-02-11 10-K expected by 2027-02-15 (in 196 days)
- ~2027-04-22 10-Q expected by 2027-05-05 (in 266 days)
- ~2027-07-28 10-Q expected by 2027-08-10 (in 363 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-29 8-K Earnings Release; Financial Statements and Exhibits
- 2026-07-29 10-Q Quarterly Report
- 2026-06-23 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2026-05-04 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2026-04-28 8-K Material Agreement Entered; Financial Statements and Exhibits
- 2026-04-28 424B2 Prospectus Supplement
- 2026-04-23 8-K Earnings Release; Financial Statements and Exhibits
- 2026-04-23 10-Q Quarterly Report
- 2026-03-23 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-02-27 8-K Officer/Director Change
- 2026-02-26 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-02-12 10-K Annual Report
- 2026-02-12 8-K Earnings Release; Financial Statements and Exhibits
- 2025-11-13 8-K Material Agreement Entered; Material Financial Obligation; Financial Statements and Exhibits
- 2025-11-07 8-K Material Agreement Entered; Financial Statements and Exhibits