Skip to Main Content

About Cbre Group, Inc.

As the world's largest commercial real estate services company by revenue, CBRE Group provides property and facilities management, leasing, brokerage, appraisal and valuation, asset management, financing, and market research services from about 490 offices worldwide. Subsidiary Trammell Crow provides property development services for corporate and institutional clients, primarily in the US. CBRE Global Investors manages real estate investments for institutional clients. The company garners about 60% of its revenue from the Americas. CBRE was founded in San Francisco in 1906 and by the 1940s grew to be one of the largest commercial real estate services firms in the western US.

Operations

CBRE Group operates via three reporting segments: Global Workplace Solutions, Advisory Services, and Real Estate Investments.

Global Workplace Solutions generates about 60% of the company's revenue. Through that segment CBRE offers contract facilities, transaction, and project management and management consulting to real estate occupiers. The unit serves data center, energy, healthcare, financial services, industrial, retail, and technology companies.

The company's Advisory Services operations include property leasing, sales, and management; project management; mortgage services; and valuation for real estate owners, investors, and lenders. It addresses property types including commercial, residential, agribusiness, data centers, green building, hotels, land, and petroleum. The segment accounts for about 35% of the company's revenue.

CBRE's Real Estate Investments arm provides investment management services globally and development services in the US. It produces less than 5% of the company's revenue.

Geographic Reach

Los Angeles-based CBRE Group generates more than 55% of its revenue from the US, while the UK market represents more than 10%. The real estate services firm is active in greater than 100 other countries including China, France, Germany, Ireland, the Netherlands, Spain, Switzerland, South Korea, and Thailand. The company has about 485 sales offices and five corporate offices.

Sales and Marketing

CBRE Group's Global Workplace Solutions serves data center, energy, healthcare, financial services, industrial, retail, and technology companies. Its Advisory Services unit addresses property types including commercial, residential, agribusiness, data centers, green building, hotels, land, and petroleum. Among CBRE's clients are more than 90 Fortune 100 companies. The company spends more than $60 million a year on business promotion and advertising.

Financial Performance

CBRE's revenue has marched steadily higher since the recession of 2008-2009, reaching new company records each year. Since 2014 the company's sales have risen more than 130%. Net income performed similarly, adding about 120% in that time.

The company's revenue rose 15% to $21.3 billion in 2018, driven by increases in the US, Europe, the Middle East, and Africa. Pass-through costs (fees paid by other companies) recognized as revenue were the largest contributors.

CBRE's net income increased 53% to $1.1 billion that year on the higher revenue aided by a lower income tax provision.

The company's cash holdings increased by $39.1 million to $863.9 million. Operations provided $1.1 billion. CBRE used $560.7 million on investments (primarily business acquisitions and capital expenditures) and $506.6 million on financing activities (mainly repayments on senior notes).

Strategy

CBRE Group expects acquisitions to continue to drive growth. The firm is continuing to expand its already considerable geographic reach and broaden its service offerings by making fill-in acquisitions in regional markets that complement or expand existing operations. In 2018 the company acquired Australian retail leasing and property management company Race Property and Israeli facilities management firm Ramot Group. In 2019 it acquired Florida Evaluation, a commercial real estate appraisal company focused on eminent domain and litigation valuation in Florida and the Southeast.

Besides acquisitions that fill out its real estate-related portfolios, CBRE buys up companies that can extends its technology prowess and data analytics capabilities. The company uses the massive amounts of data it collects about markets around the world to inform its strategy. It also makes data analysis available to customers. The company views data analytics as one its key differentiators. In 2018 CBRE acquired FacilitySource, a facility management company that uses analytics to eliminate operational inefficiencies and optimize procurement procedures. It also acquired Noveen Consulting, which helps healthcare providers streamline operations through technology implementation strategies. The next year it acquired data center consulting and analytics software company Romonet.

Mergers and Acquisitions

CBRE Group made a number of acquisitions in 2019. The company acquired London-based multifamily residential developer Telford Homes for $337 million in mid-2019, further expanding its business into the UK market. That year CBRE Group also acquired Florida Evaluation. The move strengthened CBRE's presence in Florida and the Southeast, where Florida Valuation carries out its eminent domain- and litigation valuation-focused commercial real estate appraisal operations. It also acquired Romonet in 2018. That buy extended CBRE's data analytics capabilities--a key strategic focus for the company. Romonet is a data center consulting and analytics software company.

The previous year CBRE enhanced its international presence with its purchases of Australian retail leasing and property management company Race Property and Israeli facilities management firm Ramot Group. In furtherance of its strategy to enhance its technology and analytics, it also acquired FacilitySource and Noveen Consulting. FacilitySource uses analytics to optimize companies' procurement procedures. Noveen uses technology implementation strategies to help healthcare providers streamline their operations.

In 2017 CBRE acquired a majority interest in Caledon Capital Management Inc., a Toronto-based investment management business specializing in private infrastructure and private equity investments. Renamed CBRE Caledon Capital Management Inc., it operates as a separate business unit in the CBRE Global Investors subsidiary.

In another 2017 transaction, CBRE bought Floored Inc., a producer of SaaS (Software as a Service) offerings that include interactive 3D graphics technology for the commercial real estate industry. The acquisition increases CBRE's capabilities to develop technology for marketing and leasing commercial properties.

 

Company Background

CBRE in 2011 made one of its largest deals in several years. The company bolstered its global real estate investment management business with the acquisition of ING Groep's real estate investment management operations for some $940 million. The Dutch firm's real estate investment management business in Asia and Europe was merged into CBRE Global Investors and more than doubled the size of the unit. The transaction also included US-based Clarion Real Estate Securities and interests in commercial real estate co-investments. (The ING deal helped boost CBRE's investment management revenue by more than 60% in 2012.)

Cbre Group, Inc.

400 S HOPE ST FL 25
Los Angeles, CA 90071-2800
Phone: 1 (213) 613-3333

Stats

Employer Type: Publicly Owned
Stock Symbol: CBRE
Stock Exchange: , NYSE
Vice Chairman: Silvio Petriello
President, CEO, and Director: Robert E. Sulentic
Chairman: Raymond E. Wirta
Employees (This Location): 250
Employees (All Locations): 90,000

Major Office Locations

Los Angeles, CA

Other Locations

Birmingham, AL
Fayetteville, AR
Little Rock, AR
Chandler, AZ
Phoenix, AZ
Scottsdale, AZ
Tempe, AZ
Tucson, AZ
Aliso Viejo, CA
Anaheim, CA
Antioch, CA
Bakersfield, CA
Baldwin Park, CA
Beverly Hills, CA
Burlingame, CA
Carlsbad, CA
Chicago, CA
Compton, CA
El Segundo, CA
Glendale, CA
Irvine, CA
Long Beach, CA
Los Angeles, CA
Newport Beach, CA
Northridge, CA
Oakland, CA
Oceanside, CA
Ontario, CA
Orange, CA
Palo Alto, CA
Pasadena, CA
Redwood City, CA
Roseville, CA
Sacramento, CA
San Diego, CA
San Francisco, CA
San Jose, CA
Santa Ana, CA
Santa Clara, CA
Santa Monica, CA
Stockton, CA
Universal City, CA
Van Nuys, CA
Walnut Creek, CA
West Hills, CA
Aurora, CO
Boulder, CO
Colorado Springs, CO
Denver, CO
Englewood, CO
Fort Collins, CO
Greenwood Village, CO
East Hartford, CT
Hartford, CT
New Haven, CT
Norwalk, CT
Stamford, CT
Washington, DC
Wilmington, DE
Boca Raton, FL
Coral Gables, FL
Dania, FL
Daytona Beach, FL
Fort Lauderdale, FL
Fort Myers, FL
Hialeah, FL
Jacksonville, FL
Maitland, FL
Miami, FL
Ocoee, FL
Orlando, FL
Tampa, FL
West Palm Beach, FL
Alpharetta, GA
Atlanta, GA
Gainesville, GA
Marietta, GA
Norcross, GA
Savannah, GA
Honolulu, HI
Iowa City, IA
West Des Moines, IA
Chicago, IL
Decatur, IL
Deerfield, IL
Des Plaines, IL
Downers Grove, IL
Naperville, IL
Oak Brook, IL
Oakbrook Terrace, IL
Park Ridge, IL
Rosemont, IL
Schaumburg, IL
Fort Wayne, IN
Greenwood, IN
Indianapolis, IN
Michigan City, IN
South Bend, IN
Topeka, KS
Lexington, KY
Louisville, KY
Baton Rouge, LA
New Orleans, LA
Shreveport, LA
Andover, MA
Billerica, MA
Boston, MA
Burlington, MA
Cambridge, MA
Waltham, MA
Westford, MA
Worcester, MA
Baltimore, MD
Bethesda, MD
Hanover, MD
Hyattsville, MD
Jessup, MD
Landover, MD
Perry Hall, MD
Portland, ME
Benton Harbor, MI
Dearborn, MI
East Lansing, MI
Grand Rapids, MI
Southfield, MI
Minneapolis, MN
Kansas City, MO
Saint Louis, MO
Columbus, MS
Flowood, MS
Bozeman, MT
Charlotte, NC
Greensboro, NC
Raleigh, NC
Williston, ND
Lincoln, NE
Omaha, NE
Manchester, NH
Portsmouth, NH
Basking Ridge, NJ
Budd Lake, NJ
Carlstadt, NJ
East Brunswick, NJ
East Windsor, NJ
Parsippany, NJ
Saddle Brook, NJ
Somerset, NJ
Trenton, NJ
Albuquerque, NM
Santa Fe, NM
Las Vegas, NV
Reno, NV
Albany, NY
Buffalo, NY
Garden City, NY
Long Island City, NY
Melville, NY
Mineola, NY
New Rochelle, NY
New York, NY
Syracuse, NY
West Harrison, NY
West Hempstead, NY
White Plains, NY
Woodbury, NY
Beachwood, OH
Blacklick, OH
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dayton, OH
Fairlawn, OH
Findlay, OH
Twinsburg, OH
Lawton, OK
Oklahoma City, OK
Tulsa, OK
Portland, OR
Allentown, PA
Chesterbrook, PA
Conshohocken, PA
Dresher, PA
Harrisburg, PA
Hatfield, PA
Philadelphia, PA
Pittsburgh, PA
Cranston, RI
Providence, RI
Charleston, SC
Columbia, SC
Greenville, SC
La Vergne, TN
Memphis, TN
Nashville, TN
Arlington, TX
Austin, TX
Dallas, TX
El Paso, TX
Fort Worth, TX
Houston, TX
Humble, TX
Irving, TX
Plano, TX
San Antonio, TX
Spring, TX
Temple, TX
Salt Lake City, UT
Arlington, VA
Chantilly, VA
Charlottesville, VA
Fairfax, VA
Falls Church, VA
Fredericksburg, VA
Hampton, VA
Herndon, VA
Mc Lean, VA
Newport News, VA
Norfolk, VA
Richmond, VA
Salem, VA
Vienna, VA
Virginia Beach, VA
Bellevue, WA
Bothell, WA
Federal Way, WA
Kent, WA
Redmond, WA
Seattle, WA
Tacoma, WA
Tukwila, WA
Eau Claire, WI
Madison, WI
Milwaukee, WI
Charleston, WV
Bengaluru, India
Chennai, India
Hyderabad, India
Mumbai, India
New Delhi, India
Fukuoka, Japan
Hiroshima, Japan
Kanazawa, Japan
Nagoya, Japan
Osaka, Japan
Saitama, Japan
Sapporo, Japan
Sendai, Japan
Yokohama, Japan
Almonte, Canada
Barrie, Canada
Bowmanville, Canada
Bracebridge, Canada
Brampton, Canada
Brockville, Canada
Bromont, Canada
Burlington, Canada
Burnaby, Canada
Calgary, Canada
Chatham, Canada
Edmonton, Canada
Etobicoke, Canada
Fort Frances, Canada
Guelph, Canada
Halifax, Canada
Kanata, Canada
Kingston, Canada
Kitchener, Canada
London, Canada
Longueuil, Canada
Manotick, Canada
Markham, Canada
Mississauga, Canada
Montréal, Canada
Newmarket, Canada
North York, Canada
Oakville, Canada
Orillia, Canada
Ottawa, Canada
Parry Sound, Canada
Peterborough, Canada
Porcupine, Canada
Québec, Canada
Red Lake, Canada
Regina, Canada
Richmond Hill, Canada
Saint John, Canada
Saint-Laurent, Canada
Saskatoon, Canada
Scarborough, Canada
St. John'S, Canada
Sudbury, Canada
Thornhill, Canada
Thunder Bay, Canada
Toronto, Canada
Vancouver, Canada
Victoria, Canada
Windsor, Canada
Winnipeg, Canada
Paris, France
Brussel, Belgium