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CBRE Group Stock Gains 22.3% Year to Date: Will it Continue to Rise?

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Key Takeaways

  • CBRE Group's stock is up 22.3% this year, outpacing the industry's 17.9% gain.
  • The company is boosting growth through diversified revenues and recent in-fill acquisitions.
  • CBRE's BOE segment rose 12.6% in Q3 2025, supported by strong outsourcing demand.

Shares of CBRE Group (CBRE - Free Report) have rallied 22.3% so far in the year, outperforming the industry’s growth of 17.9%.

CBRE Group is well-poised to gain from its wide range of real estate products and services. 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.

 

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Let us decipher the possible factors behind the surge in the stock price for this Zacks Rank #3 (Hold) company.

CBRE, the largest commercial real estate services and investment firm (based on 2024 revenues), holds extensive knowledge of domestic and international real estate markets. This helps it enjoy a robust scale. A market-leading position gives it a competitive edge in navigating through any challenging situations and capitalizing on compelling opportunities.

Over the past few years, CBRE has opted for a better-balanced and more resilient business model. In pursuit of this, the company has shifted toward a more diversified and contractual revenue base, which enables it to tide over market disruptions and other economic uncertainties. In the third quarter of 2025, the company’s resilient businesses generated net revenue growth of 14%, surpassing the 13% increase in its transactional businesses.

To widen its global reach and expand, and reinforce service offerings, CBRE Group has been focusing on strategic infill acquisitions by acquiring regional or specialty firms and independent affiliates. In November 2025, CBRE Group acquired Pearce Services, LLC, for approximately $1.2 billion in cash. In the first nine months of 2025, the company completed two in-fill business acquisitions with an aggregate purchase price of approximately $31 million. These opportunistic acquisitions are likely to serve as growth drivers, supplementing its organic growth.

With occupiers of real estate increasingly opting for outsourcing and relying on the expertise of third-party real estate specialists to optimize their operations, CBRE Group’s Building Operations & Experience (“BOE”) segment is well-placed to benefit. For the third quarter of 2025, the BOE segment delivered 12.6% revenue growth year-over-year. We estimate the company’s BOE segment’s total revenues to increase 14.5% in 2025.

The company’s technology platform helps it develop and deliver superior analytical, research and client service tools to meet diverse client needs. Strategic reinvestment in its business, specifically on the technology front, is expected to differentiate CBRE Group from its peers.

CBRE had $5.2 billion in total liquidity as of Sept. 30, 2025. The company’s net leverage ratio was 1.23X as of the same date, significantly less than CBRE’s primary debt covenant of 4.25X. The company continues to expect to deleverage through the end of the year.  With ample financial flexibility, CBRE is well-positioned to capitalize on growth opportunities.

With the above-mentioned factors, we believe the rising trend in the stock is expected to continue in the near term.

Risks Likely to Affect CBRE’s Positive Trend

CBRE Group faces competition from international, regional and local players in the market. This affects the company’s ability to do business and crack deals on favorable terms. Foreign currency fluctuations add to its woes.

Stocks to Consider

Some better-ranked stocks from the real estate operations industry are Jones Lang LaSalle (JLL - Free Report) and Newmark Group (NMRK - Free Report) , each carrying 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 JLL’s 2025 earnings per share is pinned at $17.34, suggesting year-over-year growth of 23.8%.

The Zacks Consensus Estimate for NMRK’s ongoing year’s earnings per share stands at $1.59, indicating a 29.3% increase from the year-ago reported figure.


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