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COMPANY PROFILE

CBRE Group, Inc.

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PUBLICATION DATE: 05 Dec 2023
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CBRE Group, Inc.
TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview ........................................................................................................3

Key Facts ......................................................................................................................... 3
SWOT Analysis ...............................................................................................................4

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CBRE Group, Inc.
Company Overview

Company Overview

COMPANY OVERVIEW
CBRE Group, Inc. (CBRE or 'the company') is a commercial real estate services and investment firm,
offering a range of services to occupiers, owners, lenders and investors in office, retail, industrial,
multifamily and other types of commercial real estate. CBRE offers various services including commercial
real estate services, investment management services and development services. It caters its services to
retail, healthcare, law firms, industrial and logistics, data centers, technology, media and telecom
industries. The company offers services to various brands such as CBRE brand, Telford Homes and
Trammell Crow brand. Through subsidiaries, the company performs its operations across the US, Europe,
Middle East and Africa, Asia-Pacific. The company is headquartered in Dallas, Texas, the US.

The company reported revenues of (US Dollars) US$30,828.3 million for the fiscal year ended December
2022 (FY2022), an increase of 11.1% over FY2021. In FY2022, the company’s operating margin was
4.9%, compared to an operating margin of 5.9% in FY2021. In FY2022, the company recorded a net
margin of 4.6%, compared to a net margin of 6.6% in FY2021.
The company reported revenues of US$7,868.1 million for the third quarter ended September 2023, an
increase of 1.9% over the previous quarter.
Key Facts

KEY FACTS

Head Office CBRE Group, Inc.

Suite 1250
2100 Mckinney Avenue
Dallas
Texas
Dallas
Texas
USA
Phone 1 214 9796100
Fax 1 213 6133735
Web Address www.cbre.us
Revenue / turnover (USD Mn) 30,828.3
Financial Year End December
Employees 115,000
New York Stock Exchange Ticker CBRE

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SWOT Analysis

SWOT Analysis

SWOT ANALYSIS
CBRE Group, Inc. (CBRE or 'the company') is a commercial real estate services and investment firm,
offering a range of services to occupiers, owners, lenders and investors in office, retail, industrial,
multifamily and other types of commercial real estate. Increase in business revenue, financial leverage
and comprehensive integrated solutions are the company’s major strengths, even as, cash reserves
remain a cause for concern. Positive outlook for the global construction industry, contract and agreement
and cost reduction in business are likely to offer growth opportunities for the company. However, risk of
exchange rate fluctuations, government regulations, and competitive market could affect its business
operations.

Strength Weakness

Comprehensive integrated solutions Cash reserves

Increase in business revenue
Financial leverage
Opportunity Threat

Positive outlook for the global construction industry Risk of exchange rate fluctuations
Cost reduction in the business Competitive market
Contract and agreements Government regulations

Strength

Comprehensive integrated solutions

CBRE offers a wide range of services related to real estate industry throughout the world. The company's
business is focused on several competencies such as commercial property and corporate facilities
management, agency leasing, property sales, real estate investment management, valuation, commercial
mortgage origination and servicing, capital markets (structured finance and debt) solutions, development
services and proprietary research. Wide spectrum of real estate solutions allow CBRE to cater to a robust
and diversified clientele. CBRE also has a global network of more then 500 offices (excluding affiliates)
spread across Americas, Europe, Middle East, and Africa, Australia, and New Zealand. Widespread
presence allows the company to provide seamless integrated service across continents. Many of the
customers in the real estate industry have been consolidating their commercial real estate-related needs
and are looking for fewer providers. As a result, these clients have been awarding business to providers
that have a strong presence in important markets and the ability to provide a complete range of services
worldwide. Thus, CBRE's strong global network and ability to deliver comprehensive integrated solutions
positions the company to penetrate the geographies and increase its customer base.

Increase in business revenue

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SWOT Analysis

Considerable growth in revenue increases the company’s ability to allocate adequate funds to expand its
operations. In FY2022, CBRE reported revenue of US$30,828.2 million as compared to US$27,746.0
million in FY2021, indicating annual growth of 11.1%. Revenue grew due to increase in revenue
generated from Global Workplace Solutions and Advisory Services segment. In FY2022, Global
Workplace Solutions segment grew by 16.1% followed by Advisory Services segment 3.2%.

Financial leverage

CBRE experienced very low debt-to-equity ratio, in FY2022, due to which it is liable to make less amount
of interest payments and curtail its probability of fall default status. In FY2022, debt-to-equity ratio stood
at 0.3. In last reported year, fall of 23.1% is seen in the company debt, which reduce from US$2,959.6
million to US$2,273.4 million in the previous year.

Weakness

Cash reserves

Fall in cash balance is a matter of concern for CBRE. Less amount of cash reserves in the business has
direct impact on the company ability to pay its short-term obligations. In 2022, CBRE reported cash and
cash equivalents of US$1,318.3 million which stood at US$2,430.9 million in FY2021. Fall of 45.8% is
seen in cash reserves in the business. Constant decline in cash reserves may pressurize CBRE to go for
debt to arrange working capital for its business.

Opportunity

Positive outlook for the global construction industry

The company is going to get benefitted from the growth of the construction industry globally. According to
in-house research, the global construction output is expected to grow 3.7% during 2023-2025 (forecast
period) to reach US$13,849.2 billion in 2025. The South East Asia construction market is expected to
grow at a CAGR of 6.3% during the forecast-period to reach US$577.3 billion in 2025. The growth in
South East Asia is aided by the government’s focus on the development of transport, and energy and
utilities infrastructure. The South Asia construction market is expected to grow at a CAGR of 6.2% during
the forecast-period to reach US$841.5 billion in 2025. The South Asian construction industry is expected
to be aided by the government’s policies to promote manufacturing and exports. The Sub-Saharan Africa
construction market is expected to grow at a CAGR of 5.7% during the forecast-period to reach US$253.6
billion in 2025. The Middle East and North Africa construction market is expected to grow at a CAGR of
4.6% during the forecast-period to reach US$568.1 billion in 2025. The Eastern Europe and Central Asia
construction market is expected to grow at a CAGR of 4.0% during the forecast-period to reach US$787.4
billion in 2025. The growth in the Eastern Europe and Central Asia construction industry is expected to be
aided by the increase in infrastructure spending through the EU Recovery Funds. The North East Asia
construction market is expected to grow at a CAGR of 3.7% during the forecast-period to reach US$5,413
billion in 2025. The North America construction market is expected to grow at a CAGR of 3.6% during the
forecast-period to reach US$2,217.2 billion in 2025. The growth in North America’s construction industry

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SWOT Analysis

will be complemented by the positive outlook for infrastructure construction in the US and the spending
plans of President Joe Biden. The Latin America construction market is expected to grow at a CAGR of
3.0% during the forecast-period to reach US$592.9 billion in 2025. The growth in the Latin America
construction industry is expected to be aided by the public investment drive in the region. The Australasia
construction market is expected to grow at a CAGR of 2.9% during the forecast-period to reach US$232.9
billion in 2025. The Western Europe construction market is expected to grow at a CAGR of 2.1% during
the forecast-period to reach US$592.9 billion in 2025. The construction industry in Western Europe is
likely to benefit from the government’s spending on major infrastructure projects to improve the economy.

Cost reduction in the business

The company view cost reduction in the business as way to sustain its business revenue and profit in
unfavourable business conditions. In FY2022 CBRE, launched wide variety of cost and operational
efficiency initiatives that will increase its resiliency in an economic downturn. These initiatives comprise
simplification of management and workforce structure, occupancy footprint rationalization.

Contract and agreements

The company view contracts and agreements as way to strengthen its position in the market. In May
2023, CBRE announced that its property management group entered into strategic partnership with
Deepki. Under this agreement, CBRE will take real estate sustainability data-intelligence platforms Deepki
Ready, of Deepki. The company is planning to commence utilization of Deepki in the Americas and the
Pacific region as the next step in a global rollout.

Threat

Risk of exchange rate fluctuations

CBRE has operations throughout the world and is subject to changes in currency exchange rates. Since
the company reports its financials in US dollars and conducts business operations globally, its revenue is
susceptible to fluctuations in the value of the US dollar relative to other functional currencies. The
company also receives a sizeable portion of its revenue in other currencies, including the Euro, British
pound sterling, Canadian dollar, Chinese yuan, Hong Kong dollar, Japanese yen, Singapore dollar,
Australian dollar, and Indian rupee. It reported loss on foreign currency translation of US$159.7 million in
FY2021, compared to a gain of US$124.2 million in FY2020. The company's investments in overseas
subsidiaries and affiliates, as well as the financial assets and liabilities resulting from business
transactions in foreign currencies, are major factors exposed to exchange rate risks. The company
engages in foreign exchange hedging activities by entering into foreign exchange forward contracts in
order to reduce risks from currency fluctuations. However, there is no guarantee that these hedging
actions or strategies will be able to reduce how much exchange rate fluctuations will affect the company's
operational results.

Competitive market

Even though CBRE is the largest commercial real estate services company in the world in terms of

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SWOT Analysis

revenue, its relative competitive position varies greatly across different regions, property types, and
services. Depending on the product or service, the company competes against other real estate service
providers, internal corporate real estate departments, developers, institutional lenders, insurance
companies, investment banking firms, investment managers, and accounting and consulting firms, some
of which may have more financial resources than the company. The majority of CBRE's rivals are small or
regional businesses. The company major competitors are Colliers International Property Consultants Inc ,
Cushman & Wakefield Inc , Gladstone Commercial Corp, Hudson Pacific Properties Inc, Jones Lang
LaSalle Incorporated, Savills Plc, Seritage Growth Properties and Terreno Realty Corp. Some of these
rivals, despite being significantly smaller than the company, are bigger on a local or regional scale or in
specific service categories in certain markets. The company faces competition from other significant
international businesses with comparable service specialties, such as Cushman & Wakefield, Jones Lang
LaSalle, and national businesses like Newmark Grubb Knight Frank and Cassidy Turley.

Government regulations

The industry in which CBRE works is highly regulated. The company's operations are governed by laws
primarily pertaining to environmental, health, and safety concerns. It is subject to a variety of legal and
regulatory limitations in the nations where it conducts business. Federal, state, and local environmental
laws in the nations where the business operates and manages properties for clients have an impact on
that business' operations. For instance, in the UK, the Royal Institute of Chartered Surveyors and
Financial Services Authority respectively regulate the conduct of investment businesses and the
profession of Chartered Surveyors. The Securities and Exchange Commission in the US and equivalent
regulatory bodies in other nations oversee LaSalle Investment Management's capital-raising and
investment-fund-offering activities. It's possible that differences in legal and regulatory requirements will
have an impact on the company's ability to operate in some regions.

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