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Is it Wise to Retain CBRE Group Stock in Your Portfolio Now?
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Key Takeaways
CBRE benefits from diversification, a resilient outsourcing business and steady tech-driven expansion.
Strategic acquisitions and strong liquidity support growth, with rising revenue and EBITDA projections.
Capital market tightness and uneven transaction recovery continue to pressure CBRE's Advisory Services.
Shares of CBRE Group (CBRE - Free Report) have rallied 23.5% so far in the year, outperforming the industry’s growth of 18%. Analysts seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 EPS per share has moved marginally northward over the past month to $6.28.
CBRE Group is well-poised to gain from its wide range of real estate products and services. It has opted for a better-balanced and more resilient business model in recent years and continues to gain from its diversification efforts. The outsourcing business remains healthy, and its pipeline is likely to remain elevated, offering scope for growth. Strategic buyouts and technology investments are expected to drive its performance.
However, macroeconomic uncertainties continue to hurt commercial real estate transactions adversely. Credit-market conditions have been affected in a volatile environment and geopolitical unrest, and investors have adopted a cautious approach, causing a delay in the closing timeline for transactions.
Image Source: Zacks Investment Research
Let’s delve deeper and find out what’s in favor of this stock and what’s not.
What’s Aiding CBRE Group Stock?
CBRE Group’s extensive real estate service platform and deep understanding of global markets continue to strengthen its competitive edge. As the largest commercial real estate services and investment firm based on 2024 revenues, the company benefits from scale and its ability to offer a full suite of services to multinational clients. Growth has come from both organic expansion and strategic in-fill acquisitions, widening its geographic presence and enhancing capabilities. This has significantly increased the number of large clients over the years, a trend expected to continue as corporations consolidate service providers. Our estimate indicates the company’s total revenues will increase 12.8% and 5.1% year over year in 2025 and 2026, respectively.
Over time, CBRE has moved toward a more balanced and contractual revenue base, improving stability across cycles. In the third quarter of 2025, resilient business lines posted 14% net revenue growth, slightly above the 13% increase in transactional businesses. Strong geographic diversity further helps offset muted conditions in certain markets, supporting overall performance even during headwinds.
Technology investment remains a major differentiator. CBRE continues to invest millions in analytics, research and client-service tools and has acquired tech solution providers to strengthen its platform. Operational efficiencies and cost-cutting initiatives support our expectations for core EBITDA growth of 21.1% in 2025 and 13.5% in 2026.
Strategic acquisitions also remain important. The company completed multiple in-fill deals, including a $31 million set of 2025 acquisitions and nine deals worth $315 million in 2024. Larger transactions, such as the $1.2 billion Pearce Services acquisition and the purchase of Industrious, are boosting growth.
The Building Operations & Experience segment delivered 12.6% revenue growth in the third quarter of 2025, with 14.5% growth expected in 2025. The company continues to benefit from both new and existing customers and the expansion of the local business. CBRE also maintains strong liquidity of $5.2 billion and a low 1.23 net leverage ratio, supporting shareholder returns, including $663 million in share repurchases since the 2024 year-end.
What’s Hurting CBRE Group Stock?
CBRE Group’s Advisory Services segment, focused on property sales and leasing, was hit hard by the pandemic. While conditions have improved, recovery remains uneven amid ongoing uncertainty and geopolitical tensions.
With challenging capital market conditions, many capital sources have tightened their underwriting standards, reducing credit availability. Under these circumstances, investors have either paused or reconsidered their buying decisions, causing a delay in the closing timeline for transactions.
CBRE Group faces competition from international, regional and local players in the market. Some of these firms enjoy greater financial resources than the company. Also, some of them are larger on a regional or local basis or have a stronger position in a specific market segment or service offering. This affects the company’s ability to do business and crack deals on favorable terms.
Given its international presence, CBRE Group often faces an unfavorable foreign currency movement, geopolitical tension and uneasiness in some economies, which impact its top line.
The Zacks Consensus Estimate for VICI Properties’ 2025 funds from operations (FFO) per share is pegged at $2.37, suggesting a 4.10% increase year over year.
The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share is pegged at $4.92, calling for a rise of 4.7% year over year.
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Is it Wise to Retain CBRE Group Stock in Your Portfolio Now?
Key Takeaways
Shares of CBRE Group (CBRE - Free Report) have rallied 23.5% so far in the year, outperforming the industry’s growth of 18%. Analysts seem bullish on this Zacks Rank #3 (Hold) company. The Zacks Consensus Estimate for its 2025 EPS per share has moved marginally northward over the past month to $6.28.
CBRE Group is well-poised to gain from its wide range of real estate products and services. It has opted for a better-balanced and more resilient business model in recent years and continues to gain from its diversification efforts. The outsourcing business remains healthy, and its pipeline is likely to remain elevated, offering scope for growth. Strategic buyouts and technology investments are expected to drive its performance.
However, macroeconomic uncertainties continue to hurt commercial real estate transactions adversely. Credit-market conditions have been affected in a volatile environment and geopolitical unrest, and investors have adopted a cautious approach, causing a delay in the closing timeline for transactions.
Image Source: Zacks Investment Research
Let’s delve deeper and find out what’s in favor of this stock and what’s not.
What’s Aiding CBRE Group Stock?
CBRE Group’s extensive real estate service platform and deep understanding of global markets continue to strengthen its competitive edge. As the largest commercial real estate services and investment firm based on 2024 revenues, the company benefits from scale and its ability to offer a full suite of services to multinational clients. Growth has come from both organic expansion and strategic in-fill acquisitions, widening its geographic presence and enhancing capabilities. This has significantly increased the number of large clients over the years, a trend expected to continue as corporations consolidate service providers. Our estimate indicates the company’s total revenues will increase 12.8% and 5.1% year over year in 2025 and 2026, respectively.
Over time, CBRE has moved toward a more balanced and contractual revenue base, improving stability across cycles. In the third quarter of 2025, resilient business lines posted 14% net revenue growth, slightly above the 13% increase in transactional businesses. Strong geographic diversity further helps offset muted conditions in certain markets, supporting overall performance even during headwinds.
Technology investment remains a major differentiator. CBRE continues to invest millions in analytics, research and client-service tools and has acquired tech solution providers to strengthen its platform. Operational efficiencies and cost-cutting initiatives support our expectations for core EBITDA growth of 21.1% in 2025 and 13.5% in 2026.
Strategic acquisitions also remain important. The company completed multiple in-fill deals, including a $31 million set of 2025 acquisitions and nine deals worth $315 million in 2024. Larger transactions, such as the $1.2 billion Pearce Services acquisition and the purchase of Industrious, are boosting growth.
The Building Operations & Experience segment delivered 12.6% revenue growth in the third quarter of 2025, with 14.5% growth expected in 2025. The company continues to benefit from both new and existing customers and the expansion of the local business. CBRE also maintains strong liquidity of $5.2 billion and a low 1.23 net leverage ratio, supporting shareholder returns, including $663 million in share repurchases since the 2024 year-end.
What’s Hurting CBRE Group Stock?
CBRE Group’s Advisory Services segment, focused on property sales and leasing, was hit hard by the pandemic. While conditions have improved, recovery remains uneven amid ongoing uncertainty and geopolitical tensions.
With challenging capital market conditions, many capital sources have tightened their underwriting standards, reducing credit availability. Under these circumstances, investors have either paused or reconsidered their buying decisions, causing a delay in the closing timeline for transactions.
CBRE Group faces competition from international, regional and local players in the market. Some of these firms enjoy greater financial resources than the company. Also, some of them are larger on a regional or local basis or have a stronger position in a specific market segment or service offering. This affects the company’s ability to do business and crack deals on favorable terms.
Given its international presence, CBRE Group often faces an unfavorable foreign currency movement, geopolitical tension and uneasiness in some economies, which impact its top line.
Stocks to Consider
Some better-ranked stocks from the broader real estate sector are VICI Properties (VICI - Free Report) and W.P. Carey (WPC - Free Report) . Both VICI Properties and W.P. Carey carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for VICI Properties’ 2025 funds from operations (FFO) per share is pegged at $2.37, suggesting a 4.10% increase year over year.
The Zacks Consensus Estimate for W.P. Carey’s 2025 FFO per share is pegged at $4.92, calling for a rise of 4.7% year over year.