CBRE Group: #1 CRE Brand

CBRE Group Inc. (CBG - Analyst Report), the world’s largest commercial real estate services company (on the basis of 2011 revenues), has been recently ranked as the numero uno global commercial real estate (CRE) brand (in the Service Firms category) by The Lipsey Company – a leading training and consulting firm specializing in the CRE industry. The ranking marks the 11th consecutive year when CBRE Group is judged the best in this category.

Lipsey had been conducting the survey of the top brands in CRE industry for the last eleven years. The rankings are categorized in two categories: Service Firms & Owner-Operators.

The survey is based on the perception of industry professionals across the globe. An estimated headcount of over 50,000 U.S. and international professionals participated in the 2012 survey, including property owners, investors, lenders, occupiers, brokers and property managers. The recognition is an acknowledgement of the continued strong performance of CBRE Group across all verticals.

With leading full-service operations in major metropolitan areas throughout the world, CBRE Group offers a full range of services to occupiers, owners, lenders and investors in office, retail, industrial, multi-family and other types of commercial real estate.

The host of services provided by CBRE Group includes valuation, real estate investment management, commercial property and corporate facilities management, tenant representation, property/agency leasing, property sales, commercial mortgage origination and servicing, capital markets (equity and debt) solutions, development services and proprietary research. The company also generates revenues from contractual management fees.

CBRE Group is the global market leader in commercial real estate brokerage and advisory services for property leasing and sales, forecasting, valuations, origination and servicing of commercial mortgage loans, as well as project and real estate investment management. The companyhas an extensive knowledge of domestic and international real estate markets that enables it to operate as a single-source provider of real estate solutions.

CBRE Group has a hard-to-replicate intellectual capital and technology resources that develop and deliver superior analytical, research and client service tools to its professionals that enable it to meet diverse client needs.The gradual revival of the overall economy, albeit at a tepid and inconsistent pace, has enabled the company to drive its growth engine and management further expects to continue the momentum in 2012 as well. We also remain encouraged by indications of stabilization and recovery of market conditions.

We maintain our Neutral rating on CBRE Group, which presently has a Zacks #3 Rank translating into a short-term Hold recommendation. We also have a Neutral rating and a Zacks #3 Rank for NorthStar Realty Finance Corp. (NRF - Snapshot Report), one of the peers of CBRE Group.