Back to top

Analyst Blog

In an effort to boost its service offering in the southeast, CBRE Group Inc. (CBG - Analyst Report) purchased the commercial real estate services businesses of Atlanta-based Resource Real Estate Partners LLC (RREP) and TPA Realty Services LLC.

Through this acquisition, CBRE Group’s Atlanta property management portfolio will gain office and industrial assets spanning over 13 million sq. ft. However, RREP/TPA’s operations, which are still developing, will be excluded from this acquisition.

In addition to the office and industrial assets, CBRE Group will retain 70 employees from the RREP/TPA businesses. These employees, who are skilled in leasing and investment sales in the region, will be incorporated in the present offices of CBRE Group in the Atlanta region.

As a matter of fact, based on 2011 revenues of $5.9 billion, CBRE Group is the world’s largest commercial real estate services firm, with leading full-service operations in major metropolitan areas throughout the world.

Further, this particular acquisition will help CBRE Group augment its service offerings in the northeast Atlanta submarket and complement its existing capabilities in Atlanta. Such strategic moves are expected to bode well for the company’s top line.

The company operates as a single-source provider of real estate solutions with a broad range of real estate product and services, and an extensive knowledge of domestic and international real estate markets.

CBRE Group, however, reported relatively unimpressive results in the third quarter of 2012, with its earnings missing the Zacks Consensus Estimate by 7 cents, as the sovereign debt crisis in Europe and a slow growth trajectory in Asia held back its momentum.

Currently, CBRE Group has a Zacks #5 Rank, implying a short-term Strong Sell rating. One of its peers -- Jones Lang LaSalle Incorporated (JLL - Analyst Report) -- carries a Zacks #4 Rank, translating to a short-term Sell rating.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%