CBRE GROUP, INC.
For the period ended Sep 30, 2026. Filed Oct 22, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 22, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-29.
0001138118-26-000024
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-22.
0001138118-26-000031
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 673 previous paragraphs and 619 current paragraphs.
322 unchanged; 173 reworded; 111 added; 158 removed; 20 previous and 13 current paragraphs rearranged.
Tables are not compared: 11 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (111)
Current report
for facilities management and project management activities. The commercial real estate market recovery continued. In the
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third quarter, leasing volumes were notably strong in the U.K., while growth in the U.S. was muted given a tougher year-ago
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comparison. Global investment sales activity remained strong, most notably in the U.S.; however, transaction activity slowed
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late in the period as the 10-year Treasury rate rose rapidly towell above 5%. Through the first nine months of 2026, the
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Experience (BOE) segmentsand single-digit growth in the Project Management segment, partially offset by a decrease in
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yen andeuro partially offset bystrength in the Australian dollar.
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Cost of revenue, excluding pass-through costs increased 14.9% during the quarter as compared to the same period in
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translationhad a 0.1% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-
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Operating, administrative and other expenses increased 17.9% during the quarter as compared to the same period in
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prior year due to higher employee compensation expense, attributable to business growth. Foreign currency translation had a
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Gain on disposition of real estate increased by$148 million during the quarter, due to higher sales of real estate
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income of$52 million in thethird quarter 2025 primarily due monetization of real estate development assets in the current
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period.
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of$41 million is primarily related to an increase in earnings and a reduction of favorable permanent book tax differences. Our
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effective tax rate increased to 21.4% for thethree months ended September 30, 2026 from 18.5% forthe three months ended
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We reported net income attributable to CBRE Group, Inc. of$965 million for thenine months ended September 30,
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Foreign currency translation had a 1.6% positive impact on total revenue during thenine months ended September 30,
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Japanese yen.
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Pass-through costs increased 13.8% during thenine months ended September 30, 2026 as compared to the same period
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Cost of revenue, excluding pass-through costs increased 17.8% during thenine months ended September 30, 2026 as
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Foreign currency translation had a 1.7% negative impact on total cost of revenue, excluding pass-through costs. Cost of
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Operating, administrative and other expenses increased 20.2% during thenine months ended September 30, 2026 as
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business growth. Foreign currency translation had a 1.6% negative impact on total operating expenses during thenine months
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Depreciation and amortization expense increased by 28.7% during thenine months ended September 30, 2026 as
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Gain on disposition of real estate increased by$435 million during thenine months ended September 30, 2026, driven
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by monetization of real estate development assets in the REI segment.
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We reported equity income from unconsolidated subsidiaries of approximately$99 million during thenine months
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ended September 30, 2026 versus equity income of$50 million in the same period in 2025 primarily due to higher monetization
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an increase in current year earnings and a reduction of favorable permanent book tax differences. Our effective tax rate
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increased to 22.5% in thenine months ended September 30, 2026 as compared to 19.7% in 2025. Our effective tax rate for the
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the United States up 3.9%. Property sales revenue grew 27.9%, driven primarily by growth in the U.S. across industrial, retail,
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Foreign currency translation had a 0.2% negative impact on total revenue during the quarter, primarily driven by
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weakness in the Japanese yen partially offset bystrength in the Australian dollar.
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Cost of revenue, excluding pass-through costs increased 14.3%, primarily reflecting business growth and higher
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Operating, administrative and other expenses increased by 1.0%, as compared to the same period in 2025. Foreign
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currency translation had a 0.2% positive impact on total operating expenses.
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$41 million and$36 million, respectively, resulting in a netincrease of$5 million. The shift from a net increase to a net
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presentation.
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Revenue increased 16.4% for thenine months ended September 30, 2026 as compared to the same period in 2025.
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EMEA and APAC also contributing to growth. Global leasing revenue rose 15.9%, led by office, industrial and data centers
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The strong recovery of the commercial real estate market continued in the first half of 2026. This is reflected in
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increased property leasing and sales activity, particularly in the U.S. Leasing activity in the U.S. remained strong across all
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property types, led by industrial and office, while global activity continued to strengthen in international markets as well.
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During the second quarter, investment sales activity improved significantly in the U.S., while growth was more modest in
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overseas markets. Investment activity has been supported by broad capital availability, improved occupancy market
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demand for facilities management and project management activities, while the outsized growth of Artificial Intelligence
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(REI) segment.
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Cost of revenue, excluding pass-through costs increased 17.1% during the quarter as compared to the same period in
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translation had a 1.3% negative impact on total cost of revenue, excluding pass-through costs. Cost of revenue, excluding pass-
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Operating, administrative and other expenses increased 20.5% during the quarter as compared to the same period in
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prior year. The increase was primarily due to an increase in the provision related to fire safety remediation efforts for buildings
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growth. Foreign currency translation had a 1.3% negative impact on total operating expenses during the quarter. Operating,
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$18 million in thesecond quarter 2025.
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primarily attributable to increased commercial paper borrowings and the issuance of$750 million in senior notes, offset by the
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is primarily related to an increase in earnings. Our effective tax rate increased to 21.6% for thethree months ended June 30,
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differences.
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We reported consolidated net income of$522 million for thesix months ended June 30, 2026 on revenue of
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Foreign currency translation had a 2.6% positive impact on total revenue during thesix months ended June 30, 2026,
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Pass-through costs increased 15.1% during thesix months ended June 30, 2026 as compared to the same period in
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Cost of revenue, excluding pass-through costs increased 19.4% during thesix months ended June 30, 2026 as
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Foreign currency translation had a 2.6% negative impact on total cost of revenue, excluding pass-through costs. Cost of
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Operating, administrative and other expenses increased 21.4% during thesix months ended June 30, 2026 as compared
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growth. Foreign currency translation had a 2.6% negative impact on total operating expenses during thesix months ended
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Depreciation and amortization expense increased by 29.6% during thesix months ended June 30, 2026 as compared to
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acquisitions, such as Pearce.
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Gain on disposition of real estate increased by$287 million during thesix months ended June 30, 2026, driven by
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monetization of real estate development assets the REI segment.
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We reported equity loss of$5 million during thesix months ended June 30, 2026 primarily driven by fair value
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adjustments related to our equity investments, compared to equity loss of$2 million in the same period in 2025.
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increase in current year earnings. Our effective tax rate increased to 23.4% insix months ended June 30, 2026 as compared to
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and six months ended June 30, 2026 and 2025 (dollars in millions):
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Africa (EMEA); which grew 26.5% and Asia Pacific (APAC) which grew 18.9%. Property sales revenue grew 20.0%, driven
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to growth in the period.
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Foreign currency translation had a 0.9% positive impact on total revenue during the quarter, primarily driven by
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Cost of revenue, excluding pass-through costs increased 18.0%, primarily reflecting business growth and higher
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Operating, administrative and other expenses increased by 10.8%, as compared to the same period in 2025, primarily
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due to higher employee compensation and bonus, and higher business promotion and advertising expense, driven by growth in
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the business. Foreign currency translation had a 1.3% negative impact on total operating expenses.
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the fiscal 2026 presentation.
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Revenue increased 19.7% for thesix months ended June 30, 2026 as compared to the same period in 2025. Property
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three and six months ended June 30, 2026 should be read in conjunction with our consolidated financial statements and related
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three and nine months ended September 30, 2026 should be read in conjunction with our consolidated financial statements and
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notes included in our 2025 Annual Report on Form 10-K (2025 Annual Report) as well as the unaudited financial statements
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related notes included in our 2025 Annual Report on Form 10-K (2025 Annual Report) as well as the unaudited financial
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included elsewhere in this Quarterly Report.
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statements included elsewhere in this Quarterly Report.
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investments and data center buildouts has fueled continued strong demand for critical infrastructure services. Through the first
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Outsized investments in artificial intelligence and data center buildouts have fueled continued strong demand for
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fundamentals and narrower bid-ask spreads. Large occupiers’ growing appetite for outsourcing services continued to underpin
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critical infrastructure services, while large occupiers’ growing appetite for outsourcing services continued to underpin demand
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half of 2026, the ongoing Middle East conflict has had limited impact on CBRE’s business except for a slowdown in
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ongoing Middle East conflict has had limited direct impact on CBRE’s business except for a slowdown in fundraising from
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fundraising from capital sources based in the region.
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capital sources based in the region.
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We deployed$988 million in 2026 to repurchase 6,984,186 shares as of July 27, 2026.
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We deployed$1.2 billion in 2026 to repurchase 8,398,578 shares as of October 20, 2026.
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The following table sets forth items derived from our consolidated statements of operations for thethree and six
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The following table sets forth items derived from our consolidated statements of operations for thethree and nine
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We reported consolidated net income of$204 million for the quarter, on revenue of$11.2 billion as compared to
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We reported net income attributable to CBRE Group, Inc. of$443 million for the quarter, on revenue of$11.5 billion
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consolidated net income of$215 million on revenue of$9.7 billion in the prior year.
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as compared to$363 million on revenue of$10.2 billion in the prior year.
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Revenue increased 15.5% reflecting double-digit growth across the Advisory Services, Building Operations &
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Revenue increased 12.7% reflecting double-digit growth across the Advisory Services and Building Operations &
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Experience (BOE) and Project Management segments, partially offset by a decrease in revenue in the Real Estate Investments
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revenue in the Real Estate Investments (REI) segment.
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Foreign currency translation had a 1.2% positive impact on revenue, reflecting strength in theeuro, Australian dollar
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Foreign currency translation had a 0.2% negative impact on revenue, reflecting weakness in the Indian rupee, Japanese
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Pass-through costs increased 13.1% during the quarter as compared to the same period in prior year primarily due to
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Pass-through costs increased 11.4% during the quarter as compared to the same period in prior year primarily due to
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revenue growth in the BOE segment. Foreign currency translation had a 1.3% negative impact on pass-through costs.
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growth in the BOE segment. Foreign currency translation had a 0.4% positive impact on pass-through costs.
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prior year primarily reflecting business growth and higher employee compensation andcommission expenses. Foreign currency
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prior year primarily driven by business growth and higher employee compensation andcommission expenses. Foreign currency
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through costs increased to 40.2% of total revenue from 39.7% driven by higher costs to support growth in revenues.
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through costs increased to 40.8% of total revenue from 40.0% resulting from higher costs to support growth in revenues.
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administrative and other expenses as a percentage of revenue increased to 13.7% in thesecond quarter 2026 from 13.1% in the
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percentage of revenue increased to 13.6% in thethird quarter 2026 from 13.0% in thethird quarter 2025, as operating expenses
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operating expenses grew higher than revenue.
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grew higher than revenue.
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Depreciation and amortization expense increased by 31.0% during the quarter, as compared to the same period in prior
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Depreciation and amortization expense increased by 26.9% during the quarter, as compared to the same period in prior
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development assets in the REI segment, compared to the prior year.
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development assets in the REI segment.
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We recorded equity income from unconsolidated subsidiaries of approximately$4 million, compared to equity loss of
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We recorded equity income from unconsolidated subsidiaries of approximately$104 million, compared to equity
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Interest expense, net of interest income, increased by 1.7%, compared with thesecond quarter 2025. This increase was
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Interest expense, net of interest income, increased by 24.0%, compared with thethird quarter 2025. This increase was
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$750 million in senior notes, offset by the impact of net investment hedging activity.
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primarily attributable tothe issuance of$1.5 billion in senior notes, offset by the impact of net investment hedging activity.
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Ourprovision for income taxes on a consolidated basis was$68 million for thethree months ended June 30, 2026 as
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Ourprovision for income taxes on a consolidated basis was$131 million for thethree months ended September 30,
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compared to aprovision for income taxes of$61 million for thethree months ended June 30, 2025. Theincrease of$7 million
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2026 as compared to aprovision for income taxes of$90 million for thethree months ended September 30, 2025. Theincrease
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20.8% in 2025. Our effective tax rate for thesix months ended June 30, 2026 is different than the U.S. federal statutory tax rate
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September 30, 2025. Our effective tax rate for thethree months ended September 30, 2026 is different than the U.S. federal
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of 21.0% primarily due to the U.S. state taxes and permanent book tax differences.
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statutory tax rate of 21.0% primarily due to the U.S. state taxes and permanent book tax differences.
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$21.8 billion as compared to consolidated net income of$378 million on revenue of$18.6 billion for thesix months ended
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2026 on revenue of$33.3 billion as compared to$741 million on revenue of$28.8 billion for thenine months ended
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Revenue increased 17.0%, reflecting double-digit growth across the Advisory Services, BOE and Project Management
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Revenue increased 15.5%, reflecting double-digit growth across the Advisory Services, BOE and Project Management
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primarily driven bystrength in theeuro and British pound sterling, partially offset byweakness in the Indian rupee.
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2026, primarily driven bystrength in theeuro and British pound sterling, partially offset byweakness in the Indian rupee and
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2025 primarily due to revenue growth in the BOE and Project Management segments. Foreign currency translation had a 2.6%
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in 2025 primarily due to revenue growth in the BOE and Project Management segments. Foreign currency translation had a
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compared to the same period in 2025 reflecting business growth andhigher employee compensation and commission expenses.
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compared to the same period in 2025 due to business growth andhigher employee compensation and commission expenses.
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revenue, excluding pass-through costs increased to 40.2% of total revenue from 39.4%.
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revenue, excluding pass-through costs increased to 40.4% of total revenue from 39.6%.
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to the same period last year primarily due to an increase in the provision related to fire safety remediation efforts for buildings
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compared to the same period last year primarily due to an increase in the provision related to fire safety remediation efforts for
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historically developed by our subsidiary, Telford Homes (see Note 17 – Telford Fire Safety Remediation). In addition,
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buildings historically developed by our subsidiary, Telford Homes (see Note 17 – Telford Fire Safety Remediation). In
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operating, administrative and other expenses increased due to higher employee compensation expense, driven by business
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addition, operating, administrative and other expenses increased due to higher employee compensation expense, as a result of
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June 30, 2026. Operating, administrative and other expenses as a percentage of revenue increased to 13.8% from 13.3%, as
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ended September 30, 2026. Operating, administrative and other expenses as a percentage of revenue increased to 13.7% from
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second quarter 2025, as operating expenses grew higher than revenue.
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13.2%, as operating expenses grew faster than revenue.
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0.1% positive impact on total operating expenses during the quarter. Operating, administrative and other expenses as a
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1.6% negative impact on pass-through costs.
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state taxes and permanent book tax differences.
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reduction reflects lower origination gains, as recent originations have shifted to shorter loan terms in a higher rate environment,
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assets from recent acquisitions, such as Pearce.
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party spend. Foreign currency translation had a negligible impact on total cost of revenue, excluding pass-through costs. Cost of
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partially offset byweakness in the Indian rupee.
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development services partially offset by increased investment management revenue. Foreign currency translation had a 1.8%
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currency translation had a 1.6% negative impact on total operating expenses.
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and December 31, 2025, we had$1.2 billion and$852 million, respectively, in outstanding borrowings under the commercial
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Long-Term Debt and Short-Term Borrowings of the Notes to Consolidated Financial Statements (Unaudited) set forth in Item 1
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Credit Agreement). The 5-Year Revolving Credit Agreement provides for a senior unsecured revolving credit facility available
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Year Revolving Credit Agreement in an amount at least equal to the amount of commercial paper notes outstanding from time
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revenue growth in the BOE and Project Management segments. Foreign currency translation had a 1.1% negative impact on
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2026 from 20.3% forthe three months ended June 30, 2025. Our effective tax rate for thethree months ended June 30, 2026 is
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negative impact on pass-through costs.
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historically developed by our subsidiary, Telford Homes (see Note 17 – Telford Fire Safety Remediation). In addition,
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operating, administrative and other expenses increased due to higher employee compensation expense, driven by business
Previous report — wording carried elsewhere
strength in the Australian dollar andeuro partially offset byweakness in the Japanese yen and Indian rupee.
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Foreign currency translation had a 1.8% positive impact on total revenue during thesix months ended June 30, 2026,
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netreduction of$17 million. The increased net reduction reflects lower origination gains, as recent originations have shifted to
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2025 primarily due to revenue growth in the BOE segment. Foreign currency translation had a 2.8% negative impact on pass-
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euro, and partially offset byweakness in the Indian rupee.
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during the quarter primarily driven bystrength in theeuro and British pound sterling.
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development services lines of business. Foreign currency translation had a 0.5% negative impact on total operating expenses.
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fire safety remediation efforts for buildings historically developed by our subsidiary, Telford Homes (see Note 17 – Telford
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least equal to the amount of commercial paper notes outstanding. As of June 30, 2026 and December 31, 2025, we had
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generating aggregate net proceeds of approximately$742 million, after offering expenses. We used the net proceeds from this
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On May 4, 2026, CBRE Services issued$750 million in aggregate principal amount of 5.250% senior notes due
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Credit Agreement)which replaced our prior revolving credit agreement dated August 5, 2022. The 5-Year Revolving Credit
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Agreement provides for a senior unsecured revolving credit facility available to CBRE Services with commitments in an
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The 5-Year Revolving Credit Agreement requires us to pay a fee based on the total amount of the revolving credit
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outstanding borrowings under the commercial paper program.