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 months ended March 31, 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.”
During the first quarter of 2026, we began reclassifying amortization associated with MSRs (mortgage servicing rights) to net against the related revenue (Commercial mortgage origination). Historically, the corresponding MSR intangible assets were amortized through amortization expense over the estimated mortgage service period. Prior year amounts have been reclassified to conform to the fiscal 2026 presentation.
Business Environment
The strong recovery of the commercial real estate market that began in 2025 continued in early 2026. This is evident in the continuation of markedly increased property leasing and sales activity during the first quarter. Occupier demand remained notably strong in the U.S. particularly for industrial, office and data center space in the U.S. During the quarter, investment sales and financing activity improved sharply in most global markets, buoyed by broad capital availability, improved occupancy market fundamentals and tighter 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 fuels strong demand for critical infrastructure services. To date, the ongoing Middle East conflict has had limited impact on CBRE’s business except for a notable slowdown in fundraising from capital sources based in the region.
Capital Allocation
We deployed $538 million in 2026 to repurchase 3,639,682 shares as of April 21, 2026.
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Results of Operations
The following table sets forth items derived from our consolidated statements of operations for the three months ended March 31, 2026 and 2025 (dollars in millions):
Three Months Ended March 31, (1) | |||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||||||
| Facilities management | $ | 5,229 | 49.7 | % | $ | 4,469 | 50.4 | % | |||||||||||||||||||||||||||||||||
| Property management | 684 | 6.5 | % | 586 | 6.6 | % | |||||||||||||||||||||||||||||||||||
Critical infrastructure | 578 | 5.5 | % | 338 | 3.8 | % | |||||||||||||||||||||||||||||||||||
| Project management | 1,838 | 17.5 | % | 1,594 | 18.0 | % | |||||||||||||||||||||||||||||||||||
| Advisory leasing | 1,035 | 9.8 | % | 862 | 9.7 | % | |||||||||||||||||||||||||||||||||||
| Valuation | 200 | 1.9 | % | 183 | 2.1 | % | |||||||||||||||||||||||||||||||||||
| Loan servicing | 120 | 1.1 | % | 120 | 1.4 | % | |||||||||||||||||||||||||||||||||||
| Other portfolio services | 75 | 0.7 | % | 81 | 0.9 | % | |||||||||||||||||||||||||||||||||||
| Capital markets: | |||||||||||||||||||||||||||||||||||||||||
| Advisory sales | 513 | 4.9 | % | 360 | 4.1 | % | |||||||||||||||||||||||||||||||||||
| Commercial mortgage origination | 81 | 0.8 | % | 53 | 0.6 | % | |||||||||||||||||||||||||||||||||||
| Investment management | 154 | 1.5 | % | 154 | 1.7 | % | |||||||||||||||||||||||||||||||||||
| Development services | 45 | 0.4 | % | 79 | 0.9 | % | |||||||||||||||||||||||||||||||||||
| Corporate, other and eliminations | (25) | (0.2) | % | (4) | 0.0 | % | |||||||||||||||||||||||||||||||||||
| Total revenue | 10,527 | 100.0 | % | 8,875 | 100.0 | % | |||||||||||||||||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||||||||||||||||
Pass-through costs (2) | 4,448 | 42.3 | % | 3,798 | 42.8 | % | |||||||||||||||||||||||||||||||||||
| Cost of revenue, excluding pass-through costs | 4,227 | 40.2 | % | 3,467 | 39.1 | % | |||||||||||||||||||||||||||||||||||
| Operating, administrative and other | 1,460 | 13.9 | % | 1,192 | 13.4 | % | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 182 | 1.7 | % | 142 | 1.6 | % | |||||||||||||||||||||||||||||||||||
| Total costs and expenses | 10,317 | 98.0 | % | 8,599 | 96.9 | % | |||||||||||||||||||||||||||||||||||
| Gain on disposition of real estate | 301 | 2.9 | % | — | 0.0 | % | |||||||||||||||||||||||||||||||||||
| Operating income | 511 | 4.9 | % | 276 | 3.1 | % | |||||||||||||||||||||||||||||||||||
| Equity (loss) income from unconsolidated subsidiaries | (9) | (0.1) | % | 16 | 0.2 | % | |||||||||||||||||||||||||||||||||||
| Other income | 11 | 0.1 | % | 1 | 0.0 | % | |||||||||||||||||||||||||||||||||||
| Interest expense, net of interest income | 59 | 0.6 | % | 50 | 0.6 | % | |||||||||||||||||||||||||||||||||||
| Income before provision for income taxes | 454 | 4.3 | % | 243 | 2.7 | % | |||||||||||||||||||||||||||||||||||
| Provision for income taxes | 112 | 1.1 | % | 52 | 0.6 | % | |||||||||||||||||||||||||||||||||||
| Net income | 342 | 3.2 | % | 191 | 2.2 | % | |||||||||||||||||||||||||||||||||||
| Less: Net income attributable to non-controlling interests | 24 | 0.2 | % | 28 | 0.3 | % | |||||||||||||||||||||||||||||||||||
| Net income attributable to CBRE Group, Inc. | $ | 318 | 3.0 | % | $ | 163 | 1.8 | % | |||||||||||||||||||||||||||||||||
| Core EBITDA | $ | 831 | 7.9 | % | $ | 518 | 5.8 | % | |||||||||||||||||||||||||||||||||
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(1)Calculated as a percentage of Total Revenue.
(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
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Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025
We reported consolidated net income of $318 million for the quarter, on revenue of $10.5 billion as compared to consolidated net income of $163 million on revenue of $8.9 billion in the prior year.
Revenue increased 18.6% reflecting double-digit growth across the Advisory Services, Building Operations & Experience (BOE) and Project Management segments, partially offset by a decrease in revenue in the Real Estate Investments (REI) segment.
Foreign currency translation had a 4.0% positive impact on revenue, reflecting strength in the euro and British pound sterling partially offset by weakness in the Indian rupee.
Pass-through costs increased 17.1% during the quarter as compared to the same period in prior year primarily due to revenue growth in the BOE and Project Management segments. Foreign currency translation had a 4.1% negative impact on pass-through costs.
Cost of revenue, excluding pass-through costs increased 21.9% during the quarter as compared to the same period in prior year primarily reflecting business growth and higher commission expenses and employee compensation, as well as higher indirect reimbursed costs. Foreign currency translation had a 4.0% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-through costs increased to 40.2% of total revenue from 39.1% driven by higher costs to support growth in revenues.
Operating, administrative and other expenses increased 22.5% during the quarter as compared to the same period in prior year. The increase was primarily due to higher employee compensation and business promotion and advertising expense, driven by business growth. Foreign currency translation had a 4.0% negative impact on total operating expenses during the quarter. Operating, administrative and other expenses as a percentage of revenue increased to 13.9% in the first quarter 2026 from 13.4% in the first quarter 2025, as operating expenses grew higher than revenue.
Depreciation and amortization expense increased by 28.2% during the quarter, as compared to the same period in prior year, reflecting higher amortization expense related to intangible assets from recent acquisitions, such as Pearce.
Gain on disposition of real estate increased by $301 million during the quarter, driven by monetization of real estate development assets in the REI segment.
We recorded equity loss from unconsolidated subsidiaries of approximately $9 million, compared to equity income of $16 million in the first quarter 2025. In the first quarter 2025, we recorded equity income of $21 million, reflecting the higher value of our investment in Altus, which was sold in the second quarter 2025.
Interest expense, net of interest income, increased by 18.0%, compared with the first quarter 2025. This increase was primarily attributable to increased commercial paper borrowings, offset by the impact of net investment hedging activity.
Our provision for income taxes on a consolidated basis was $112 million for the three months ended March 31, 2026 as compared to a provision for income taxes of $52 million for the three months ended March 31, 2025. The increase of $60 million is primarily related to an increase in earnings. Our effective tax rate increased to 24.7% for the three months ended March 31, 2026 from 21.4% for the three months ended March 31, 2025. Our effective tax rate for the three months ended March 31, 2026 is different than the U.S. federal statutory tax rate of 21.0% primarily due to the U.S. state taxes and permanent book tax differences.
Legislative Developments
The Organization for Economic Co-operation & Development (OECD) Pillar Two Model Rules established a minimum global effective tax rate of 15% on country-by-country profits of large multinational companies. European Union member states along with many other countries adopted or expect to adopt the OECD Pillar Two Model effective January 1, 2024 or thereafter. In January 2026, the OECD issued a comprehensive Side by Side Package, which introduces additional administrative guidance intended to enhance coordination and simplify aspects of the global minimum tax framework. The package includes several new safe harbors including the new Side by Side and Ultimate Parent Entity safe harbors that may deem certain top-up taxes to be zero in jurisdictions with qualifying minimum tax regimes, such as the United States. We will
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continue to monitor additional administrative guidance and legislative action to incorporate the guidance into local law to assess the global impact of the Pillar Two Model Rules. The impact of Pillar Two top-up taxes is expected to be insignificant for 2026.
On July 4, 2025, the U.S. federal government enacted, H.R.1, the One Big Beautiful Bill Act (OBBBA), a budget reconciliation package that changes the U.S. federal income tax laws, including extensions of various expiring provisions from the Tax Cuts and Jobs Act of 2017. The 2026 impacts of the OBBBA are insignificant based on our current operations.
Segment Operations
We organize our operations around, and publicly report our financial results for, four reportable business segments: (1) Advisory Services; (2) BOE; (3) Project Management; and (4) REI.
Advisory Services provides a comprehensive range of services globally, including leasing, capital markets (property sales and loan origination), loan servicing, and valuation. BOE provides a broad suite of integrated, contractually based outsourcing services to occupiers and owners of real estate, including facilities management, property management and critical infrastructure. Our Project Management business delivers program management and cost consultancy services across commercial real estate, infrastructure and natural resources sectors. REI is a major real assets developer, investor and operator and is comprised of two businesses: investment management and development services.
We also have a Corporate and Other segment. Corporate primarily consists of corporate overhead costs, and costs associated with our platform that are not allocated to segments, including corporate leadership costs. Other consists of activities from strategic non-core, non-controlling equity investments and is considered an operating segment but does not meet the aggregation criteria for presentation as a separate reportable segment and is, therefore, combined with Corporate and reported within Corporate and Other. It also includes eliminations related to inter-segment revenue. For additional information on our segments, see Note 16 – Segments of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1 of this Quarterly Report.
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Advisory Services
The following table summarizes our results of operations for our Advisory Services operating segment for the three months ended March 31, 2026 and 2025 (dollars in millions):
Three Months Ended March 31, (1) | |||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||||||
| Advisory leasing | $ | 1,035 | 51.1 | % | $ | 862 | 52.0 | % | |||||||||||||||||||||||||||||||||
| Valuation | 200 | 9.9 | % | 183 | 11.0 | % | |||||||||||||||||||||||||||||||||||
| Loan servicing | 120 | 5.9 | % | 120 | 7.2 | % | |||||||||||||||||||||||||||||||||||
| Other portfolio services | 75 | 3.7 | % | 81 | 4.9 | % | |||||||||||||||||||||||||||||||||||
| Capital markets: | |||||||||||||||||||||||||||||||||||||||||
| Advisory sales | 513 | 25.3 | % | 360 | 21.7 | % | |||||||||||||||||||||||||||||||||||
| Commercial mortgage origination | 81 | 4.0 | % | 53 | 3.2 | % | |||||||||||||||||||||||||||||||||||
| Total segment revenue | 2,024 | 100.0 | % | 1,659 | 100.0 | % | |||||||||||||||||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||||||||||||||||
Pass-through costs (2) | 8 | 0.4 | % | 12 | 0.7 | % | |||||||||||||||||||||||||||||||||||
| Cost of revenue, excluding pass-through costs | 1,181 | 58.3 | % | 955 | 57.6 | % | |||||||||||||||||||||||||||||||||||
| Operating, administrative and other | 469 | 23.2 | % | 428 | 25.8 | % | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | 33 | 1.6 | % | 32 | 1.9 | % | |||||||||||||||||||||||||||||||||||
| Total costs and expenses | 1,691 | 83.5 | % | 1,427 | 86.0 | % | |||||||||||||||||||||||||||||||||||
| Operating income | 333 | 16.5 | % | 232 | 14.0 | % | |||||||||||||||||||||||||||||||||||
| Equity (loss) income from unconsolidated subsidiaries | (1) | 0.0 | % | 1 | 0.1 | % | |||||||||||||||||||||||||||||||||||
| Other income | 1 | 0.0 | % | 1 | 0.1 | % | |||||||||||||||||||||||||||||||||||
| Add-back: Depreciation and amortization | 33 | 1.6 | % | 32 | 1.9 | % | |||||||||||||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||||||||
| Net non-cash mortgage servicing rights | 12 | 0.6 | % | 13 | 0.8 | % | |||||||||||||||||||||||||||||||||||
| Business and finance transformation | 2 | 0.1 | % | — | 0.0 | % | |||||||||||||||||||||||||||||||||||
Costs associated with efficiency and cost-reduction initiatives | (5) | (0.2) | % | — | 0.0 | % | |||||||||||||||||||||||||||||||||||
| Segment operating profit | $ | 375 | $ | 279 | |||||||||||||||||||||||||||||||||||||
________________________________________________________________________________________________________________________________________
(1)Calculated as a percentage of Total Revenue.
(2)Pass-through costs represent certain costs incurred associated with subcontracted third-party vendor work performed for clients. These costs are reimbursable by clients and the corresponding amounts owed are reflected within Revenue.
Three Months Ended March 31, 2026 Compared to the Three Months Ended March 31, 2025
Revenue increased 22.0% during the quarter compared to the same period in 2025. Property sales revenue grew 42.5%, led by industrial, retail, multifamily, office, and data centers in the U.S. and Asia Pacific. Globally, sales grew double-digits across industrial, office, and multifamily. Global leasing revenue rose 20.1%, led by data centers, industrial and office leasing driven by growth in the Americas which grew 20.5%, including 20.7% in the United States, and growth in Asia Pacific which grew 24.4%.
Foreign currency translation had a 2.8% positive impact on total revenue during the quarter, primarily driven by strength in the euro and British pound sterling partially offset by weakness in the Indian rupee and Japanese yen.
Cost of revenue, excluding pass-through costs increased 23.7%, primarily reflecting business growth and higher commission expense, salaries and bonus. Foreign currency translation had a 3.0% negative impact on total cost of revenue, excluding pass-through costs.
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Operating, administrative and other expenses increased by 9.6%, as compared to the same period in 2025, primarily due to higher employee compensation and business promotion and advertising expenses driven by the growth in the business. Foreign currency translation had a 4.2% negative impact on total operating expenses.
For the three months ended March 31, 2026, gross income from mortgage servicing rights (MSR) was $26 million, offset by $38 million of amortization of related intangible assets, resulting in a net reduction to Commercial Mortgage Origination revenue of $12 million. For the three months ended March 31, 2025, the comparable amounts were $22 million and $35 million, respectively, resulting in a net reduction of $13 million. The change was associated with higher origination activity given an increase in financing activities.
In connection with the origination and sale of mortgage loans with servicing rights retained, we record servicing assets or liabilities based on the fair value of mortgage servicing rights (MSRs) on the date the loans are sold. Upon origination of a mortgage loan held for sale, the fair value of the mortgage servicing rights to be retained is included in the forecasted proceeds from the anticipated loan sale and results in a net gain (which is reflected in revenue). Our MSRs are initially recorded at fair value. Subsequent to the initial recording, MSRs are amortized in proportion to and over the period that the servicing income is expected to be received based on projections and timing of estimated future net cash flows and assessed for impairment based on the fair value each reporting period. During the first quarter of 2026, we began reclassifying amortization associated with MSRs (mortgage servicing rights) to net against the related revenue (Commercial mortgage origination). Historically, the corresponding MSR intangible assets were amortized through amortization expense over the estimated mortgage service period. Prior year amounts have been reclassified to conform to the fiscal 2026 presentation.
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Building Operations & Experience
The following table summarizes our results of operations for our BOE operating segment for the three months ended March 31, 2026 and 2025 (dollars in millions):
Three Months Ended March 31, (1) | |||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||||||||
| Facilities management | $ | 5,229 | 80.6 | % | $ | 4,469 | 82.9 | % | |||||||||||||||||||||||||||||||||
| Property management | 684 | 10.5 | % | 586 | 10.9 | % | |||||||||||||||||||||||||||||||||||
Critical infrastructure | 578 | 8.9 | % | 338 | 6.3 | % | |||||||||||||||||||||||||||||||||||
| Total segment revenue | 6,491 | 100.0 | % | 5,393 | 100.0 | % | |||||||||||||||||||||||||||||||||||
| Costs and expenses: | |||||||||||||||||||||||||||||||||||||||||
Pass-through costs (2) | 3,513 | 54.1 | % | 2,959 | 54.9 | % | |||||||||||||||||||||||||||||||||||
| Cost of revenue, excluding pass-through costs | 2,371 | 36.5 | % | 1,922 | 35.6 | % | |||||||||||||||||||||||||||||||||||
| Operating, administrative and other | 377 | 5.8 | % | ||||||||||||||||||||||||||||||||||||||
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
- ~2026-07-28 10-Q expected by 2026-08-10 (in 43 days)
- ~2026-10-22 10-Q expected by 2026-11-04 (in 129 days)
- ~2027-02-11 10-K expected by 2027-02-15 (in 241 days)
- ~2027-04-22 10-Q expected by 2027-05-05 (in 311 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 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
- 2025-10-23 10-Q Quarterly Report
- 2025-10-23 8-K Earnings Release; Financial Statements and Exhibits
- 2025-08-12 8-K Officer/Director Change