Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 23, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-32205 | |
Entity Registrant Name | CBRE GROUP, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3391143 | |
Entity Address, Address Line One | 2100 McKinney Avenue | |
Entity Address, Address Line Two | Suite 1250 | |
Entity Address, City or Town | Dallas | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75201 | |
City Area Code | 214 | |
Local Phone Number | 979-6100 | |
Title of 12(b) Security | Class A Common Stock, $0.01 par value per share | |
Trading Symbol | “CBRE” | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 304,792,801 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001138118 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,252,101 | $ 1,318,290 |
Restricted cash | 100,963 | 86,559 |
Receivables, less allowance for doubtful accounts of $103,654 and $92,354 at September 30, 2023 and December 31, 2022, respectively | 5,707,977 | 5,326,807 |
Warehouse receivables | 1,010,659 | 455,354 |
Contract assets | 407,652 | 391,626 |
Prepaid expenses | 324,493 | 311,508 |
Income taxes receivable | 179,653 | 81,528 |
Other current assets | 343,114 | 557,009 |
Total Current Assets | 9,326,612 | 8,528,681 |
Property and equipment, net of accumulated depreciation and amortization of $1,520,669 and $1,386,261 at September 30, 2023 and December 31, 2022, respectively | 851,739 | 836,041 |
Goodwill | 4,961,501 | 4,868,382 |
Other intangible assets, net of accumulated amortization of $2,097,149 and $1,915,725 at September 30, 2023 and December 31, 2022, respectively | 2,064,321 | 2,192,706 |
Operating lease assets | 998,733 | 1,033,011 |
Investments in unconsolidated subsidiaries (with $920,655 and $973,635 at fair value at September 30, 2023 and December 31, 2022, respectively) | 1,316,395 | 1,317,705 |
Non-current contract assets | 95,418 | 137,480 |
Real estate under development | 431,817 | 172,253 |
Non-current income taxes receivable | 71,526 | 51,910 |
Deferred tax assets, net | 332,424 | 265,554 |
Other assets, net | 1,236,931 | 1,109,666 |
Total Assets | 21,687,417 | 20,513,389 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 2,901,451 | 3,078,781 |
Compensation and employee benefits payable | 1,285,717 | 1,459,001 |
Accrued bonus and profit sharing | 1,180,446 | 1,691,118 |
Operating lease liabilities | 238,904 | 229,591 |
Contract liabilities | 263,093 | 276,334 |
Income taxes payable | 161,808 | 184,453 |
Short-term borrowings: | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 994,119 | 447,840 |
Revolving credit facility | 673,000 | 178,000 |
Other short-term borrowings | 4,795 | 42,914 |
Total short-term borrowings | 1,671,914 | 668,754 |
Current maturities of long-term debt | 0 | 427,792 |
Other current liabilities | 163,311 | 226,170 |
Total Current Liabilities | 7,866,644 | 8,241,994 |
Long-term debt, net of current maturities | 2,795,855 | 1,085,712 |
Non-current operating lease liabilities | 1,059,631 | 1,080,385 |
Non-current income taxes payable | 30,428 | 54,761 |
Non-current tax liabilities | 141,255 | 148,806 |
Deferred tax liabilities, net | 268,086 | 282,073 |
Other liabilities | 1,064,629 | 1,013,926 |
Total Liabilities | 13,226,528 | 11,907,657 |
Commitments and contingencies | 0 | 0 |
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock; $0.01 par value; 525,000,000 shares authorized; 304,750,283 and 311,014,160 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | 3,048 | 3,110 |
Additional paid-in capital | 0 | 0 |
Accumulated earnings | 8,724,653 | 8,832,943 |
Accumulated other comprehensive loss | (1,043,685) | (982,780) |
Total CBRE Group, Inc. Stockholders’ Equity | 7,684,016 | 7,853,273 |
Non-controlling interests | 776,873 | 752,459 |
Total Equity | 8,460,889 | 8,605,732 |
Total Liabilities and Equity | $ 21,687,417 | $ 20,513,389 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Receivables, allowance for doubtful accounts | $ 103,654 | $ 92,354 |
Accumulated depreciation and amortization | 1,520,669 | 1,386,261 |
Other intangible assets, accumulated amortization | 2,097,149 | 1,915,725 |
Investments in unconsolidated subsidiaries, fair value | $ 920,655 | $ 973,635 |
CBRE Group, Inc. Stockholders’ Equity: | ||
Class A common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class A common stock, shares authorized (in shares) | 525,000,000 | 525,000,000 |
Class A common stock, shares issued (in shares) | 304,750,283 | 311,014,160 |
Class A common stock, shares outstanding (in shares) | 304,750,283 | 311,014,160 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 7,868,046 | $ 7,529,546 | $ 22,999,025 | $ 22,633,757 |
Costs and expenses: | ||||
Cost of revenue | 6,396,824 | 5,934,490 | 18,582,733 | 17,740,668 |
Operating, administrative and other | 1,058,043 | 1,080,316 | 3,355,758 | 3,335,131 |
Depreciation and amortization | 149,161 | 142,136 | 465,038 | 453,527 |
Asset impairments | 0 | 0 | 0 | 36,756 |
Total costs and expenses | 7,604,028 | 7,156,942 | 22,403,529 | 21,566,082 |
Gain on disposition of real estate | 5,417 | 1,746 | 17,738 | 200,564 |
Operating income | 269,435 | 374,350 | 613,234 | 1,268,239 |
Equity (loss) income from unconsolidated subsidiaries | (13,361) | 233,972 | 120,817 | 396,011 |
Other income (loss) | 13,628 | 7,844 | 21,714 | (13,529) |
Interest expense, net of interest income | 38,206 | 19,957 | 109,603 | 51,301 |
Write-off of financing costs on extinguished debt | 0 | 1,862 | 0 | 1,862 |
Income before provision for income taxes | 231,496 | 594,347 | 646,162 | 1,597,558 |
Provision for income taxes | 30,551 | 142,667 | 113,991 | 259,691 |
Net income | 200,945 | 451,680 | 532,171 | 1,337,867 |
Less: Net income attributable to non-controlling interests | 10,392 | 5,041 | 23,322 | 11,609 |
Net income attributable to CBRE Group, Inc. | $ 190,553 | $ 446,639 | $ 508,849 | $ 1,326,258 |
Basic income per share: | ||||
Net income per share attributable to CBRE Group, Inc. (in dollars per share) | $ 0.62 | $ 1.40 | $ 1.64 | $ 4.07 |
Weighted average shares outstanding for basic income per share (in shares) | 307,854,518 | 319,827,769 | 309,716,456 | 325,705,500 |
Diluted income per share: | ||||
Net income per share attributable to CBRE Group, Inc. (in dollars per share) | $ 0.61 | $ 1.38 | $ 1.62 | $ 4.01 |
Weighted average shares outstanding for diluted income per share (in shares) | 312,221,133 | 324,742,584 | 313,944,855 | 330,558,314 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 200,945 | $ 451,680 | $ 532,171 | $ 1,337,867 |
Other comprehensive loss: | ||||
Foreign currency translation loss | (145,168) | (329,794) | (71,489) | (714,973) |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 110 | 113 | 331 | 328 |
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (467) | (1,313) | 106 | (5,160) |
Other, net of tax | 1,400 | 127 | 6,957 | 127 |
Total other comprehensive loss | (144,125) | (330,867) | (64,095) | (719,678) |
Comprehensive income | 56,820 | 120,813 | 468,076 | 618,189 |
Less: Comprehensive (loss) income attributable to non-controlling interests | (18,836) | (54,312) | 20,132 | (125,645) |
Comprehensive income attributable to CBRE Group, Inc. | $ 75,656 | $ 175,125 | $ 447,944 | $ 743,834 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 532,171 | $ 1,337,867 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 465,038 | 453,527 |
Amortization of financing costs | 3,887 | 6,537 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (78,816) | (132,938) |
Gain on disposition of real estate assets | (17,738) | 0 |
Asset impairments | 0 | 36,756 |
Net realized and unrealized (gains) losses, primarily from investments | (3,757) | 29,046 |
Provision for doubtful accounts | 12,701 | 11,501 |
Net compensation expense for equity awards | 73,016 | 123,812 |
Equity income from unconsolidated subsidiaries | (120,817) | (396,011) |
Distribution of earnings from unconsolidated subsidiaries | 188,886 | 369,511 |
Proceeds from sale of mortgage loans | 7,081,001 | 10,696,971 |
Origination of mortgage loans | (7,610,859) | (10,559,591) |
Increase (decrease) in warehouse lines of credit | 546,279 | (100,937) |
Tenant concessions received | 7,760 | 9,140 |
Purchase of equity securities | (10,739) | (15,779) |
Proceeds from sale of equity securities | 9,833 | 27,387 |
(Increase) decrease in real estate under development | (269) | 59,116 |
Increase in receivables, prepaid expenses and other assets (including contract and lease assets) | (227,619) | (375,359) |
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | (293,364) | (132,424) |
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing | (668,781) | (375,180) |
Increase in net income taxes receivable/payable | (164,526) | (129,514) |
Other operating activities, net | (96,667) | (128,629) |
Net cash (used in) provided by operating activities | (373,380) | 814,809 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (211,267) | (160,996) |
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired | (170,211) | (60,131) |
Contributions to unconsolidated subsidiaries | (105,407) | (322,127) |
Distributions from unconsolidated subsidiaries | 27,873 | 46,720 |
Acquisition and development of real estate assets | (103,251) | 0 |
Proceeds from disposition of real estate assets | 55,599 | 0 |
Investment in VTS | 0 | (100,432) |
Other investing activities, net | (30,465) | (6,783) |
Net cash used in investing activities | (537,129) | (603,749) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving credit facility | 3,836,000 | 283,000 |
Repayment of revolving credit facility | (3,341,000) | 0 |
Proceeds from senior term loans | 748,714 | 0 |
Repayment of senior term loans | (437,497) | 0 |
Proceeds from notes payable on real estate | 60,149 | 25,904 |
Repayment of notes payable on real estate | (38,648) | (22,514) |
Proceeds from issuance of 5.950% senior notes | 975,253 | 0 |
Repurchase of common stock | (645,869) | (1,404,394) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (126,589) | (31,525) |
Units repurchased for payment of taxes on equity awards | (53,857) | (35,162) |
Non-controlling interest contributions | 1,992 | 1,293 |
Non-controlling interest distributions | (1,504) | (740) |
Other financing activities, net | (70,821) | (28,583) |
Net cash provided by (used in) financing activities | 906,323 | (1,212,721) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | (47,599) | (315,069) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (51,785) | (1,316,730) |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT BEGINNING OF PERIOD | 1,404,849 | 2,539,781 |
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH, AT END OF PERIOD | 1,353,064 | 1,223,051 |
Cash paid during the period for: | ||
Interest | 127,829 | 68,878 |
Income tax payments, net | $ 383,408 | $ 507,557 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | Sep. 30, 2023 |
5.950% Senior Notes | Senior Notes | |
Interest rate | 5.95% |
Consolidated Statements of Equi
Consolidated Statements of Equity (Unaudited) - USD ($) $ in Thousands | Total | Class A common stock | Additional paid-in capital | Accumulated earnings | Accumulated other comprehensive loss | Non- controlling interests |
Beginning balance at Dec. 31, 2021 | $ 9,359,117 | $ 3,329 | $ 798,892 | $ 8,366,631 | $ (640,659) | $ 830,924 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,337,867 | 1,326,258 | 11,609 | |||
Net compensation expense for equity awards | 123,812 | 123,812 | ||||
Units repurchased for payment of taxes on equity awards | (35,162) | (35,162) | ||||
Repurchase of common stock | (1,410,483) | (168) | (872,992) | (537,323) | ||
Foreign currency translation loss | (714,973) | (577,719) | (137,254) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 328 | 328 | ||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (5,160) | (5,160) | ||||
Contributions from non-controlling interests | 1,293 | 1,293 | ||||
Distributions to non-controlling interests | (740) | (740) | ||||
Other | (16,255) | 10 | (14,550) | 173 | 127 | (2,015) |
Ending balance at Sep. 30, 2022 | 8,639,644 | 3,171 | 0 | 9,155,739 | (1,223,083) | 703,817 |
Beginning balance at Jun. 30, 2022 | 8,894,984 | 3,221 | 0 | 9,084,358 | (951,569) | 758,974 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 451,680 | 446,639 | 5,041 | |||
Net compensation expense for equity awards | 41,490 | 41,490 | ||||
Units repurchased for payment of taxes on equity awards | (321) | (321) | ||||
Repurchase of common stock | (408,311) | (51) | (32,829) | (375,431) | ||
Foreign currency translation loss | (329,794) | (270,441) | (59,353) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 113 | 113 | ||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (1,313) | (1,313) | ||||
Contributions from non-controlling interests | 580 | 580 | ||||
Distributions to non-controlling interests | (370) | (370) | ||||
Other | (9,094) | 1 | (8,340) | 173 | 127 | (1,055) |
Ending balance at Sep. 30, 2022 | 8,639,644 | 3,171 | 0 | 9,155,739 | (1,223,083) | 703,817 |
Beginning balance at Dec. 31, 2022 | 8,605,732 | 3,110 | 0 | 8,832,943 | (982,780) | 752,459 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 532,171 | 508,849 | 23,322 | |||
Net compensation expense for equity awards | 73,016 | 73,016 | ||||
Units repurchased for payment of taxes on equity awards | (53,857) | (16,622) | (37,235) | |||
Repurchase of common stock | (630,310) | (76) | (46,730) | (583,504) | ||
Foreign currency translation loss | (71,489) | (68,299) | (3,190) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 331 | 331 | ||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | 106 | 106 | ||||
Contributions from non-controlling interests | 1,992 | 1,992 | ||||
Distributions to non-controlling interests | (1,504) | (1,504) | ||||
Other | 4,701 | 14 | (9,664) | 3,600 | 6,957 | 3,794 |
Ending balance at Sep. 30, 2023 | 8,460,889 | 3,048 | 0 | 8,724,653 | (1,043,685) | 776,873 |
Beginning balance at Jun. 30, 2023 | 8,893,637 | 3,109 | 12,510 | 9,011,227 | (928,788) | 795,579 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 200,945 | 190,553 | 10,392 | |||
Net compensation expense for equity awards | 34,220 | 34,220 | ||||
Units repurchased for payment of taxes on equity awards | (3,640) | (3,640) | ||||
Repurchase of common stock | (516,061) | (62) | (46,730) | (469,269) | ||
Foreign currency translation loss | (145,168) | (115,940) | (29,228) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 110 | 110 | ||||
Unrealized holding (losses) gains on available for sale debt securities, net of tax | (467) | (467) | ||||
Contributions from non-controlling interests | 248 | 248 | ||||
Distributions to non-controlling interests | (106) | (106) | ||||
Other | (2,829) | 1 | 0 | (4,218) | 1,400 | (12) |
Ending balance at Sep. 30, 2023 | $ 8,460,889 | $ 3,048 | $ 0 | $ 8,724,653 | $ (1,043,685) | $ 776,873 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Readers of this Quarterly Report on Form 10-Q (Quarterly Report) should refer to the audited financial statements and notes to consolidated financial statements of CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), for the year ended December 31, 2022, which are included in our 2022 Annual Report on Form 10-K (2022 Annual Report) , filed with the United States Securities and Exchange Commission (SEC) and also available on our website (www.cbre.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Significant Accounting Policies, in the notes to consolidated financial statements in our 2022 Annual Report for further discussion of our significant accounting policies and estimates. Considerations Related to Current Macroeconomic Conditions The macroeconomic environment remains challenging as central banks rapidly raised interest rates since 2022. The high rate environment and the expectation that rates will remain higher for longer, coupled with large bank failures in early 2023 and ongoing economic uncertainty, has limited credit availability to commercial real estate. Less available and more expensive debt capital has had pronounced effects on our capital markets (mortgage origination and property sales) businesses, making property acquisitions and dispositions harder to finance. Similar factors also impact the timing and value of asset and fund monetization in our investment management and development businesses and our ability to source new debt capital to fund development projects. Financial Statement Preparation The accompanying consolidated financial statements have been prepared in accordance with the rules applicable to quarterly reports on Form 10-Q and include all information and footnotes required for interim financial statement presentation, but do not include all disclosures required under accounting principles generally accepted in the United States (U.S.), or General Accepted Accounting Principles (GAAP), for annual financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments, except as otherwise noted) considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, such as weakening global macroeconomic conditions and stress in the banking system, including less available and more expensive debt capital. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recent Accounting Pronouncements Pending Adoption In June 2022, the Financial Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, “ Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restriction s.” Topic 820, Fair Value Measurement, states that a reporting entity should consider the characteristics of the asset or liability when measuring the fair value, including restrictions on the sale of the asset or liability, if a market participant would take those characteristics into account and the key to that determination is the unit of account for the asset or liability being measured at fair value. Topic 820 contains conflicting guidance on what the unit of account is when measuring the fair value of an equity security and this has resulted in diversity in practice on whether the effects of a contractual restriction that prohibits the sale of an equity security should be considered in measuring the equity security’s fair value. To address this, the amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU introduces new disclosure requirements to provide investors with information about the restriction including the nature and remaining duration of the restriction. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update requires that leasehold improvements associated with common control leases be amortized over the useful life of the leasehold improvements to the common control group (regardless of the lease term) and accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. This update also provides a practical expedient for private companies and not-for-profit entities to use written terms and conditions of a common control arrangement to determine if a lease exists and the classification and accounting for that lease. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization method.” This update permits an accounting election to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Warehouse Receivables & Warehouse Lines of Credit | Warehouse Receivables & Warehouse Lines of Credit Our wholly-owned subsidiary CBRE Capital Markets, Inc. (CBRE Capital Markets) is a Federal Home Loan Mortgage Corporation (Freddie Mac) approved Multifamily Program Plus Seller/Servicer and an approved Federal National Mortgage Association (Fannie Mae) Aggregation and Negotiated Transaction Seller/Servicer. In addition, CBRE Capital Markets’ wholly-owned subsidiary CBRE Multifamily Capital, Inc. (CBRE MCI) is an approved Fannie Mae Delegated Underwriting and Servicing (DUS) Seller/Servicer and CBRE Capital Markets’ wholly-owned subsidiary CBRE HMF, Inc. (CBRE HMF) is a U.S. Department of Housing and Urban Development (HUD) approved Non-Supervised Federal Housing Authority (FHA) Title II Mortgagee, an approved Multifamily Accelerated Processing (MAP) lender and an approved Government National Mortgage Association (Ginnie Mae) issuer of mortgage-backed securities (MBS). Under these arrangements, before loans are originated through proceeds from warehouse lines of credit, we obtain either a contractual loan purchase commitment from either Freddie Mac or Fannie Mae or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS that will be secured by the loans. The warehouse lines of credit are generally repaid within a one-month period when Freddie Mac or Fannie Mae buys the loans or upon settlement of the Fannie Mae or Ginnie Mae MBS, while we retain the servicing rights. Loans are funded at the prevailing market rates. We elect the fair value option for all warehouse receivables. At September 30, 2023 and December 31, 2022, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage-backed securities that will be secured by the underlying loans. A rollforward of our warehouse receivables is as follows (dollars in thousands): Beginning balance at December 31, 2022 $ 455,354 Origination of mortgage loans 7,610,859 Gains (premiums on loan sales) 19,611 Proceeds from sale of mortgage loans: Sale of mortgage loans (7,061,390) Cash collections of premiums on loan sales (19,611) Proceeds from sale of mortgage loans (7,081,001) Net increase in mortgage servicing rights included in warehouse receivables 5,836 Ending balance at September 30, 2023 $ 1,010,659 The following table is a summary of our warehouse lines of credit in place as of September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) 12/15/2023 daily floating rate Secured Overnight Financing Rate (SOFR) rate plus 1.60%, with a SOFR adjustment rate of 0.05% $ 1,335,000 $ 841,189 $ 1,335,000 $ 330,509 JP Morgan (Business Lending Activity) 12/15/2023 daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% 15,000 — 15,000 — Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 650,000 55,697 650,000 — TD Bank, N.A. (TD Bank) (1) 7/15/2024 daily floating rate SOFR rate 1.30%, with a SOFR adjustment rate of 0.10% 600,000 24,532 800,000 — Bank of America, N.A. (BofA) (2) 5/22/2024 daily floating rate SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% 350,000 72,701 350,000 115,206 BofA (3) 5/22/2024 daily floating rate SOFR rate 1.25%, with a SOFR adjustment rate of 0.10% 250,000 — 250,000 — MUFG Union Bank, N.A. (Union Bank) (4) — — 200,000 2,125 $ 3,200,000 $ 994,119 $ 3,600,000 $ 447,840 _______________________________ (1) Effective July 15, 2022, this facility was amended with a revised interest rate of daily floating rate SOFR rate plus 1.30%, with a SOFR adjustment rate of 0.10% and a maturity date of July 15, 2023. Effective July 15, 2023, this facility was renewed and amended to a maximum aggregate principal amount of $300.0 million, with an uncommitted $300.0 million temporary line of credit and a maturity date of July 15, 2024. As of September 30, 2023, the uncommitted $300.0 million temporary line of credit was not utilized. (2) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate of SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 22, 2024. (3) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate of SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 22, 2024. (4) This facility expired on June 27, 2023, and was not renewed. During the nine months ended September 30, 2023, we had a maximum of $1.2 billion of warehouse lines of credit principal outstanding. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Variable Interest Entities (VIEs) | Variable Interest Entities (VIEs) We hold variable interests in certain VIEs primarily in our Real Estate Investments segment which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements. As of September 30, 2023 and December 31, 2022, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): September 30, December 31, Investments in unconsolidated subsidiaries $ 163,483 $ 152,762 Co-investment commitments 62,907 83,835 Maximum exposure to loss $ 226,390 $ 236,597 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Topic 820 of the FASB ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Quoted prices in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value measurements from those disclosed in our 2022 Annual Report , except as described below. The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 (dollars in thousands): As of September 30, 2023 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 12,152 $ — $ — $ 12,152 Debt securities issued by U.S. federal agencies — 10,966 — 10,966 Corporate debt securities — 45,410 — 45,410 Asset-backed securities — 1,382 — 1,382 Total available for sale debt securities 12,152 57,758 — 69,910 Equity securities 38,561 — — 38,561 Investments in unconsolidated subsidiaries 128,919 — 446,291 575,210 Warehouse receivables — 1,010,659 — 1,010,659 Other assets — — 25,213 25,213 Total assets at fair value $ 179,632 $ 1,068,417 $ 471,504 $ 1,719,553 As of December 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 6,164 $ — $ — $ 6,164 Debt securities issued by U.S. federal agencies — 8,249 — 8,249 Corporate debt securities — 44,091 — 44,091 Asset-backed securities — 3,201 — 3,201 Total available for sale debt securities 6,164 55,541 — 61,705 Equity securities 33,724 — — 33,724 Investments in unconsolidated subsidiaries 160,093 — 460,540 620,633 Warehouse receivables — 455,354 — 455,354 Other assets — — 14,452 14,452 Total assets at fair value $ 199,981 $ 510,895 $ 474,992 $ 1,185,868 There were no liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022. Fair value measurements for our available for sale debt securities are obtained from independent pricing services which utilize observable market data that may include quoted market prices, dealer quotes, market spreads, cash flows, the U.S. treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and conditions. The equity securities are generally valued at the last reported sales price on the day of valuation or, if no sales occurred on the valuation date, at the mean of the bid and ask prices on such date. The above tables do not include our $122.7 million capital investment in certain non-public entities as they are non-marketable equity investment accounted for under the measurement alternative, defined as cost minus impairment. These investments are included in “other assets, net” in the accompanying consolidated balance sheets. The fair values of the warehouse receivables are primarily calculated based on already locked in purchase prices. At September 30, 2023 and December 31, 2022, all of the warehouse receivables included in the accompanying consolidated balance sheets were either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and purchase of Fannie Mae or Ginnie Mae mortgage backed securities that will be secured by the underlying loans (See Note 3). These assets are classified as Level 2 in the fair value hierarchy as a substantial majority of inputs are readily observable. As of September 30, 2023 and December 31, 2022, investments in unconsolidated subsidiaries at fair value using NAV were $345.4 million and $353.0 million, respectively. These investments fall under practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded from the tables above. The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other assets Balance as of June 30, 2023 $ 452,887 $ 23,535 Transfer in (out) — — Net change in fair value (6,596) 900 Purchases / Additions — 778 Balance as of September 30, 2023 $ 446,291 $ 25,213 Balance as of December 31, 2022 $ 460,540 $ 14,452 Transfer in (out) (230) — Net change in fair value (14,019) 4,400 Purchases / Additions — 6,361 Balance as of September 30, 2023 $ 446,291 $ 25,213 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other assets (liabilities) Other income (loss) The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments as of September 30, 2023 : Valuation Technique Unobservable Input Range Weighted Average Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 24.5 % — Monte Carlo Volatility 40.0% - 68.0% 41.8 % Risk free interest rate 4.54% - 4.65% Discount Yield 25.0 % — Other assets Discounted cash flow Discount rate 24.5 % — There were no asset impairment charges or adjustments recorded during the three and nine months ended September 30, 2023. There were no other significant non-recurring fair value measurements recorded during the three and nine months ended September 30, 2023 and 2022. FASB ASC Topic 825, “Financial Instruments” requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as follows: • Cash and Cash Equivalents and Restricted Cash – These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments. • Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates carrying value. • Warehouse Receivables – These balances are carried at fair value. The primary source of value is either a contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS (see Note 3). • Investments in Unconsolidated Subsidiaries – A portion of these investments are carried at fair value as discussed above. It includes our equity investment and related interests in both public and non-public entities. Our ownership of common shares in Altus Power Inc. (Altus) is considered level 1 and is measured at fair value using a quoted price in an active market. Our ownership of alignment shares of Altus and our investment in Industrious and certain other non-controlling equity investments are considered level 3 which are measured at fair value using Monte Carlo and discounted cash flows. The valuation of Altus’ common shares and alignment shares are dependent on its stock price which could be volatile and subject to wide fluctuations in response to various market conditions. • Available for Sale Debt Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value. • Equity Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value. • Other assets / liabilities – Represents the fair value of the unfunded commitment related to a revolving facility. Valuations are based on discounted cash flow techniques, for which the significant inputs are the amount and timing of expected future cash flows, market comparables and recovery assumptions. It also includes approximately $10 million of investment in a non-public entity. • Short-Term Borrowings – The majority of this balance represents outstanding amounts under our warehouse lines of credit of our wholly-owned subsidiary, CBRE Capital Markets, and our revolving credit facilities. Due to the short-term nature and variable interest rates of these instruments, fair value approximates carrying value (see Notes 3 and 7). • Senior Term Loans – Based upon information from third-party banks (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans (comprised of tranche A Euro-denonminated term loans and U.S. Dollar-denominated term loans issued in July 2023) was approximately $726.5 million and actual carrying value was $735.2 million at September 30, 2023. The above senior term loans were used to repay the prior euro term loan which had a fair value of $424.6 million and carrying value of $427.8 million at December 31, 2022. The above carrying values are net of unamortized debt issuance costs (see Note 7). • Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our 5.950% senior notes was $944.3 million at September 30, 2023. The actual carrying value of our 5.950% senior notes, net of unamortized debt issuance costs and discount, totaled $973.3 million at September 30, 2023. The estimated fair value of our 4.875% senior notes was $583.8 million and $595.2 million at September 30, 2023 and December 31, 2022, respectively. The actual carrying value of our 4.875% senior notes, net of unamortized debt issuance costs and discount, totaled $597.2 million and $596.4 million at September 30, 2023 and December 31, 2022, respectively. The estimated fair value of our 2.500% senior notes was $387.3 million and $396.8 million at September 30, 2023 and December 31, 2022, respectively. The actual carrying value of our 2.500% senior notes, net of unamortized debt issuance costs and discount, totaled $490.1 million and $489.3 million at September 30, 2023 and December 31, 2022, respectively (See Note 7). • Notes Payable on Real Estate - As of September 30, 2023 and December 31, 2022, the carrying value of our notes payable on real estate was $27.9 million and $52.7 million, respectively. These notes payable were not recourse to CBRE Group, Inc., except for being recourse to the single-purpose entities that held the real estate assets and were the primary obligors on the notes payable. These borrowings have either fixed interest rates or floating interest rates at spreads added to a market index. Although it is possible that certain portions of our notes payable on real estate may have fair values that differ from their carrying values, based on the terms of such loans as compared to current market conditions, or other factors specific to the borrower entity, we do not believe that the fair value of our notes payable is significantly different than their carrying value. |
Investments in Unconsolidated S
Investments in Unconsolidated Subsidiaries | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Subsidiaries | Investments in Unconsolidated Subsidiaries Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging from 1.0% to 50.0%. The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in thousands): Investment type September 30, 2023 December 31, 2022 Real Estate Investments (in projects and funds) $ 671,005 $ 622,826 Investment in Altus: Class A common stock (1) 128,919 160,093 Alignment shares (2) 38,763 59,530 Subtotal 167,682 219,624 Other (3) 477,708 475,256 Total investment in unconsolidated subsidiaries $ 1,316,395 $ 1,317,705 _______________ (1) CBRE held 24,556,012 and 24,554,201 shares of Altus Class A common stock as of September 30, 2023 and December 31, 2022, respectively. (2) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven ears following the merger. As of March 31, 2023 (the second measurement date), 201,250 alignment shares automatically converted into 2,011 shares of Class A common stock, of which CBRE was entitled to 1,811 shares. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue $ 785,513 $ 688,584 $ 5,443,017 $ 1,916,277 Operating income 241,717 280,290 3,810,488 745,676 Net (loss) income (1) (464,499) 937,221 107,347 3,889,302 _______________ (1) Included in net (loss) income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. |
Long-Term Debt and Short-Term B
Long-Term Debt and Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Short-Term Borrowings | Long-Term Debt and Short-Term Borrowings Long-Term Debt Long-term debt consists of the following (dollars in thousands): September 30, December 31, Senior term loans $ 737,626 $ 427,792 5.950% senior notes due in 2034, net of unamortized discount 975,482 — 4.875% senior notes due in 2026, net of unamortized discount 598,736 598,374 2.500% senior notes due in 2031, net of unamortized discount 494,015 493,476 Total long-term debt 2,805,859 1,519,642 Less: current maturities of long-term debt — 427,792 Less: unamortized debt issuance costs 10,004 6,138 Total long-term debt, net of current maturities $ 2,795,855 $ 1,085,712 We maintain credit facilities with third-party lenders, which we use for a variety of purposes. On July 10, 2023, CBRE Group, Inc., CBRE Services, Inc. (CBRE Services) and Relam Amsterdam Holdings B.V., a wholly-owned subsidiary of CBRE Services, entered into a new 5-year senior unsecured Credit Agreement (the 2023 Credit Agreement) maturing on July 10, 2028, which refinanced and replaced the 2022 Credit Agreement (as described below). The 2023 Credit Agreement provides for a senior unsecured term loan credit facility comprised of (i) tranche A Euro-denominated term loans in an aggregate principal amount of €366.5 million and (ii) tranche A U.S. Dollar-denominated term loans in an aggregate principal amount of $350.0 million, both requiring quarterly principal payments beginning on December 31, 2024 and continuing through maturity on July 10, 2028. The proceeds of the term loans under the 2023 Credit Agreement were applied to the repayment of all remaining outstanding senior term loans under the 2022 Credit Agreement, the payment of related fees and expenses and other general corporate purposes. We entered into a cross currency swap to hedge the associated foreign currency exposure related to this transaction. The fair value of the derivative asset was immaterial as of September 30, 2023. Borrowings denominated in euros under the 2023 Credit Agreement bear interest at a rate equal to (i) the applicable percentage plus (ii) at our option, either (1) the EURIBOR rate for the applicable interest period or (2) a rate determined by reference to Daily Simple Euro Short-Term Rate (ESTR). Borrowings denominated in U.S. dollars under the 2023 Credit Agreement bear interest at a rate equal to (i) the applicable percentage, plus (ii) at our option, either (1) the Term SOFR rate for the applicable interest period plus 10 basis points or (2) a base rate determined by the reference to the greatest of (x) the prime rate, (y) the federal funds rate plus 1/2 of 1% and (z) the sum of (A) Term SOFR rate published by CME Group Benchmark Administration Limited for an interest period of one month and (B) 1.00%. The applicable rate for borrowings under the 2023 Credit Agreement are determined by reference to our Credit Rating (as defined in the 2023 Credit Agreement). As of September 30, 2023, we had (i) $387.1 million of euro term loan borrowings outstanding under the 2023 Credit Agreement (at an interest rate of 1.25% plus EURIBOR) and (ii) $348.1 million of U.S. Dollar term loan borrowings outstanding under the 2023 Credit Agreement (at an interest rate of 1.35% plus Term SOFR), net of unamortized debt issuance costs, included in the accompanying consolidated balance sheets. The term loan borrowings under the 2023 Credit Agreement are guaranteed on a senior basis by CBRE Group, Inc. and CBRE Services. The 2023 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2023 Credit Agreement) to consolidated interest expense of 2.00x and a maximum leverage ratio of total debt less available cash to consolidated EBITDA (as defined in the 2023 Credit Agreement) of 4.25x (and in the case of the first four full fiscal quarters following consummation of a qualified acquisition (as defined in the 2023 Credit Agreement), 4.75x) as of the end of each fiscal quarter. In addition, the 2023 Credit Agreement also contains other customary affirmative and negative covenants and events of default. We were in compliance with the covenants under this agreement as of September 30, 2023. The 2022 Credit Agreement was a senior unsecured credit facility that was guaranteed by CBRE Group, Inc. and CBRE Services. The 2022 Credit Agreement provided for a €400.0 million term loan facility which would have been due and payable in full at maturity on December 20, 2023. A $3.15 billion revolving credit facility, which included the capacity to obtain letters of credit and swingline loans and would have terminated on March 4, 2024, was previously provided under this agreement and was replaced with a new $3.5 billion 5-year senior unsecured Revolving Credit Agreement entered into on August 5, 2022 (as described below). The proceeds of the term loans under the 2023 Credit Agreement were applied to the repayment of all remaining outstanding loans under the 2022 Credit Agreement at which time the 2022 Credit Agreement was repaid in full and terminated. On June 23, 2023, CBRE Services issued $1.0 billion in aggregate principal amount of 5.950% senior notes due August 15, 2034 (the 5.950% senior notes) at a price equal to 98.174% of their face value. The 5.950% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to its current and future secured indebtedness (if any) to the extent of the value of the assets securing such indebtedness. The 5.950% senior notes are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 5.950% per year and is payable semi-annually in arrears on February 15 and August 15 of each year, beginning on February 15, 2024 . The 5.950% senio r notes are redeemable at our option, in whole or in part, on or after May 15, 2034 at a redemption price of 100% of the principal amount on that date, plus accrued and unpaid interest, if any, to, but excluding the date of redemption. At any time prior to May 15, 2034, we may redeem all or a portion of the notes at a redemption price equal to the greater of (1) 100% of the principal amount of the notes to be redeemed and (2) the sum of the present value at the date of redemption of the remaining scheduled payments of principal and interest thereon to May 15, 2034, assuming the notes matured on May 15, 2034, discounted to the date of redemption on a semi-annual basis at an adjusted rate equal to the treasury rate plus 40 basis points, minus accrued interest to the date of redemption, plus, in either case, accrued and unpaid interest, if any, to the redemption date. On March 18, 2021, CBRE Services issued $500.0 million in aggregate principal amount of 2.500% senior notes due April 1, 2031 (the 2.500% senior notes) at a price equal to 98.451% of their face value. The 2.500% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness. The 2.500% senior notes are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 2.500% per year and is payable semi-annually in arrears on April 1 and October 1 of each year. On August 13, 2015, CBRE Services issued $600.0 million in aggregate principal amount of 4.875% senior notes due March 1, 2026 (the 4.875% senior notes) at a price equal to 99.24% of their face value. The 4.875% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness. The 4.875% senior notes are guaranteed on a senior basis by CBRE Group, Inc. Interest accrues at a rate of 4.875% per year and is payable semi-annually in arrears on March 1 and September 1 of each year. The indentures governing our 5.950% senior notes, 4.875% senior notes and 2.500% senior notes (1) contain restrictive covenants that, among other things, limit our ability to create or permit liens on assets securing indebtedness, enter into sale/leaseback transactions and enter into consolidations or mergers, and (2) require that the notes be jointly and severally guaranteed on a senior basis by CBRE Group, Inc. and any domestic subsidiary that guarantees the 2023 Credit Agreement or the Revolving Credit Agreement. The indentures also contain other customary affirmative and negative covenants and events of default. We were in compliance with the covenants under our debt instruments as of September 30, 2023. Short-Term Borrowings Revolving Credit Agreement On August 5, 2022, we entered into a new 5-year senior unsecured Revolving Credit Agreement (the “Revolving Credit Agreement”). The Revolving Credit Agreement provides for a senior unsecured revolving credit facility available to CBRE Services with a capacity of $3.5 billion and a maturity date of August 5, 2027. Borrowings bear interest at (i) CBRE Services’ option, either (a) a Term SOFR rate published by CME Group Benchmark Administration Limited for the applicable interest period or (b) a base rate determined by reference to the greatest of (1) the prime rate determined by Wells Fargo, (2) the federal funds rate plus 1/2 of 1% and (3) the sum of (x) a Term SOFR rate published by CME Group Benchmark Administration Limited for an interest period of one month and (y) 1.00% plus (ii) 10 basis points, plus (iii) a rate equal to an applicable rate (in the case of borrowings based on the Term SOFR rate, 0.630% to 1.100% and in the case of borrowings based on the base rate, 0.0% to 0.100%, in each case, as determined by reference to our Debt Rating (as defined in the Revolving Credit Agreement). The applicable rate is also subject to certain increases and/or decreases specified in the Revolving Credit Agreement linked to achieving certain sustainability goals. The Revolving Credit Agreement requires us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). In addition, the Revolving Credit Agreement also includes capacity for letters of credit not to exceed $300.0 million in the aggregate. The Revolving Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the Revolving Credit Agreement) to consolidated interest expense of 2.00x and a maximum leverage ratio of total debt less available cash to consolidated EBITDA (as defined in the Revolving Credit Agreement) of 4.25x (and in the case of the first four full fiscal quarters following consummation of a qualified acquisition (as defined in the Revolving Credit Agreement), 4.75x) as of the end of each fiscal quarter. In addition, the Revolving Credit Agreement also contains other customary affirmative and negative covenants and events of default. We were in compliance with the covenants under this agreement as of September 30, 2023. As of September 30, 2023, $673.0 million was outstanding under the Revolving Credit Agreement. No letters of credit were outstanding as of September 30, 2023. Letters of credit are issued in the ordinary course of business and would reduce the amount we may borrow under the Revolving Credit Agreement. Turner & Townsend Revolving Credit Facilities Turner & Townsend has a revolving credit facility with a capacity of £120.0 million and an additional accordion option of £20.0 million that matures on March 31, 2027. As of September 30, 2023, no amount was outstanding under this revolving credit facility. Warehouse Lines of Credit CBRE Capital Markets has warehouse lines of credit with third-party lenders for the purpose of funding mortgage loans that will be resold, and a funding arrangement with Fannie Mae for the purpose of selling a percentage of certain closed multifamily loans to Fannie Mae. These warehouse lines are recourse only to CBRE Capital Markets and are secured by our related warehouse receivables. See Note 3 for additional information. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases We are the lessee in contracts for our office space tenancies and for leased vehicles. At times, we enter into ground leases on development projects in our REI segment. These arrangements account for the significant portion of our lease liabilities and right-of-use assets. We monitor our service arrangements to evaluate whether they meet the definition of a lease. Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification September 30, December 31, Assets Operating Operating lease assets $ 998,733 $ 1,033,011 Financing Other assets, net 97,133 91,028 Total leased assets $ 1,095,866 $ 1,124,039 Liabilities Current: Operating Operating lease liabilities $ 238,904 $ 229,591 Financing Other current liabilities 32,797 33,039 Non-current: Operating Non-current operating lease liabilities 1,059,631 1,080,385 Financing Other liabilities 64,881 58,094 Total lease liabilities $ 1,396,213 $ 1,401,109 Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in thousands): Nine Months Ended 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 115,898 $ 108,649 Right-of-use assets obtained in exchange for new financing lease liabilities 37,065 21,331 Other non-cash (decreases) increases in operating lease right-of-use assets (1) (6,818) 37,741 Other non-cash (decreases) increases in financing lease right-of-use assets (1) (2,168) 5,444 _______________________________ (1) The non-cash activity in the right-of-use assets resulted from lease modifications/remeasurements and terminations. |
Leases | Leases We are the lessee in contracts for our office space tenancies and for leased vehicles. At times, we enter into ground leases on development projects in our REI segment. These arrangements account for the significant portion of our lease liabilities and right-of-use assets. We monitor our service arrangements to evaluate whether they meet the definition of a lease. Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification September 30, December 31, Assets Operating Operating lease assets $ 998,733 $ 1,033,011 Financing Other assets, net 97,133 91,028 Total leased assets $ 1,095,866 $ 1,124,039 Liabilities Current: Operating Operating lease liabilities $ 238,904 $ 229,591 Financing Other current liabilities 32,797 33,039 Non-current: Operating Non-current operating lease liabilities 1,059,631 1,080,385 Financing Other liabilities 64,881 58,094 Total lease liabilities $ 1,396,213 $ 1,401,109 Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in thousands): Nine Months Ended 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 115,898 $ 108,649 Right-of-use assets obtained in exchange for new financing lease liabilities 37,065 21,331 Other non-cash (decreases) increases in operating lease right-of-use assets (1) (6,818) 37,741 Other non-cash (decreases) increases in financing lease right-of-use assets (1) (2,168) 5,444 _______________________________ |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued as liabilities on our consolidated financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our consolidated financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated. In January 2008, CBRE MCI, a wholly-owned subsidiary of CBRE Capital Markets, entered into an agreement with Fannie Mae under Fannie Mae’s Delegated Underwriting and Servicing Lender Program (DUS Program) to provide financing for multifamily housing with five or more units. Under the DUS Program, CBRE MCI originates, underwrites, closes and services loans without prior approval by Fannie Mae, and typically, is subject to sharing up to one-third of any losses on loans originated under the DUS Program. CBRE MCI has funded loans with unpaid principal balances of $41.1 billion at September 30, 2023, of which $37.5 billion is subject to such loss sharing arrangements. CBRE MCI, under its agreement with Fannie Mae, must post cash reserves or other acceptable collateral under formulas established by Fannie Mae to provide for sufficient capital in the event losses occur. As of September 30, 2023 and December 31, 2022, CBRE MCI had $140.0 million and $113.0 million, respectively, of letters of credit under this reserve arrangement and had recorded a liability of approximately $68.1 million and $65.1 million, respectively, for its loan loss guarantee obligation under such arrangement. Fannie Mae’s recourse under the DUS Program is limited to the assets of CBRE MCI, which assets totaled approximately $981.8 million (including $529.2 million of warehouse receivables, a substantial majority of which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at September 30, 2023. CBRE Capital Markets participates in Freddie Mac’s Multifamily Small Balance Loan (SBL) Program. Under the SBL program, CBRE Capital Markets has certain repurchase and loss reimbursement obligations. We could potentially be obligated to repurchase any SBL loan originated by CBRE Capital Markets that remains in default for 120 days following the forbearance period, if the default occurred during the first 12 months after origination and such loan had not been earlier securitized. In addition, CBRE Capital Markets may be responsible for a loss not to exceed 10% of the original principal amount of any SBL loan that is not securitized and goes into default after the 12-month repurchase period. CBRE Capital Markets must post a cash reserve or other acceptable collateral to provide for sufficient capital in the event the obligations are triggered. As of both September 30, 2023 and December 31, 2022, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement. We had outstanding letters of credit totaling $236.4 million as of September 30, 2023, excluding letters of credit for which we have outstanding liabilities already accrued on our consolidated balance sheet related to our subsidiaries’ outstanding reserves for claims under certain insurance programs as well as letters of credit related to operating leases. The CBRE Capital Markets letters of credit totaling $145.0 million as of September 30, 2023 referred to in the preceding paragraphs represented the majority of the $236.4 million outstanding letters of credit as of such date. The remaining letters of credit are primarily executed by us in the ordinary course of business and expire at the end of each of the respective agreements. We had guarantees totaling $198.4 million as of September 30, 2023, excluding guarantees related to pension liabilities, consolidated indebtedness and other obligations for which we have outstanding liabilities already accrued on our consolidated balance sheet, and excluding guarantees related to operating leases. The $198.4 million primarily represents guarantees executed by us in the ordinary course of business, including various guarantees of management and vendor contracts in our operations overseas, which expire at the end of each of the respective agreements. In addition, as of September 30, 2023, we had issued numerous non-recourse carveout, completion and budget guarantees relating to development projects for the benefit of third parties. These guarantees are commonplace in our industry and are made by us in the ordinary course of our Real Estate Investments business. Non-recourse carveout guarantees generally require that our project-entity borrower not commit specified improper acts, with us potentially liable for all or a portion of such entity’s indebtedness or other damages suffered by the lender if those acts occur. Completion and budget guarantees generally require us to complete construction of the relevant project within a specified timeframe and/or within a specified budget, with us potentially being liable for costs to complete in excess of such timeframe or budget. While there can be no assurance, we do not expect to incur any material losses under these guarantees. An important part of the strategy for our Real Estate Investments segment involves investing our capital in certain real estate investments with our clients. For our investment funds, we generally co-invest up to 2.0% of the equity in a particular fund. As of September 30, 2023, we had aggregate future commitments of $116.9 million related to co-investment funds. Additionally, we make selective investments in real estate development projects on our own account or co-invest with our clients with up to 50% of the project's equity as a principal in unconsolidated real estate projects. We had unfunded capital commitments of $200.7 million and $95.5 million to consolidated and unconsolidated projects, respectively, as of September 30, 2023. Also refer to Note 14 for the Telford Fire Safety Remediation provision. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income taxes on a consolidated basis was $30.6 million for the three months ended September 30, 2023 as compared to a provision for income taxes of $142.7 million for the three months ended September 30, 2022. The decrease of $112.1 million is primarily related to a decrease in earnings. Our effective tax rate decreased to 13.2% for the three months ended September 30, 2023 from 24.0% for the three months ended September 30, 2022. Our provision for income taxes on a consolidated basis was $114.0 million for the nine months ended September 30, 2023 as compared to a provision for income taxes of $259.7 million for the nine months ended September 30, 2022. The decrease of $145.7 million is primarily related to a decrease in earnings, offset by a one-time tax benefit in 2022 as a result of legal entity restructuring. Our effective tax rate increased to 17.6% for the nine months ended September 30, 2023 from 16.3% for the nine months ended September 30, 2022. Our effective tax rates for the three and nine months ended September 30, 2023 were different than the U.S. federal statutory tax rate of 21.0% primarily due to U.S. state taxes, favorable permanent book tax differences and discrete tax benefits including tax return filings in various jurisdictions. As of September 30, 2023 and December 31, 2022, the company had gross unrecognized tax benefits of $402.6 million and $391.4 million, respectively. The increase of $11.2 million resulted from the accrual of gross unrecognized tax benefits offset by the release of gross unrecognized tax benefits due to the expiration of statute of limitations in various tax jurisdictions. |
Income Per Share and Stockholde
Income Per Share and Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share And Stockholders Equity [Abstract] | |
Income Per Share and Stockholders' Equity | Income Per Share and Stockholders’ Equity The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in thousands, except share and per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 190,553 $ 446,639 $ 508,849 $ 1,326,258 Weighted average shares outstanding for basic income per share 307,854,518 319,827,769 309,716,456 325,705,500 Basic income per share attributable to CBRE Group, Inc. stockholders $ 0.62 $ 1.40 $ 1.64 $ 4.07 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 190,553 $ 446,639 $ 508,849 $ 1,326,258 Weighted average shares outstanding for basic income per share 307,854,518 319,827,769 309,716,456 325,705,500 Dilutive effect of contingently issuable shares 4,366,615 4,914,815 4,228,399 4,852,814 Weighted average shares outstanding for diluted income per share 312,221,133 324,742,584 313,944,855 330,558,314 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 0.61 $ 1.38 $ 1.62 $ 4.01 For the three and nine months ended September 30, 2023, 326,762 and 345,108, respectively, of contingently issuable shares were excluded from the computation of diluted income per share because their inclusion would have had an anti-dilutive effect. For the three and nine months ended September 30, 2022, 1,506,140 and 1,369,162, respectively, of contingently issuable shares were excluded from the computation of diluted income per share because their inclusion would have had an anti-dilutive effect. On November 19, 2021, our board of directors authorized a program for the repurchase of up to $2.0 billion of our Class A common stock over five years (the 2021 program). On August 18, 2022, our board of directors authorized an additional $2.0 billion, bringing the total authorized repurchase amount under this program to a total of $4.0 billion. During the three months ended September 30, 2023, we repurchased 6,213,921 shares of our common stock with an average price of $83.03 per share using cash on hand for an aggregate of $515.9 million under the 2021 program. During the nine months ended September 30, 2023, we repurchased 7,582,094 shares of our common stock with an average price of $83.11 per share using cash on hand for an aggregate of $630.2 million under the 2021 program. As of September 30, 2023, we had approximately $1.5 billion of capacity remaining under the 2021 program. During the three months ended September 30, 2022, we repurchased 5,094,577 shares of our common stock using cash on hand for an aggregate of $408.3 million. During the nine months ended September 30, 2022, we repurchased 16,783,086 shares of our common stock using cash on hand for an aggregate of $1.4 billion. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We account for revenue with customers in accordance with FASB ASC Topic, “ Revenue from Contracts with Customers ” (Topic 606). Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those services. Disaggregated Revenue The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in thousands): Three Months Ended September 30, 2023 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,843,347 $ — $ — $ 3,843,347 Project management — 1,805,340 — — 1,805,340 Advisory leasing 827,498 — — — 827,498 Advisory sales 369,819 — — — 369,819 Property management 464,958 — — (3,849) 461,109 Valuation 163,101 — — — 163,101 Commercial mortgage origination (1) 36,903 — — — 36,903 Loan servicing (2) 19,445 — — — 19,445 Investment management — — 136,797 — 136,797 Development services — — 66,475 — 66,475 Topic 606 Revenue 1,881,724 5,648,687 203,272 (3,849) 7,729,834 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 69,882 — — — 69,882 Loan servicing 61,227 — — — 61,227 Development services (3) — — 7,103 — 7,103 Total Out of Scope of Topic 606 Revenue 131,109 — 7,103 — 138,212 Total Revenue $ 2,012,833 $ 5,648,687 $ 210,375 $ (3,849) $ 7,868,046 Three Months Ended September 30, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,671,930 $ — $ — $ 3,671,930 Project management — 1,171,809 — — 1,171,809 Advisory leasing 989,615 — — — 989,615 Advisory sales 600,527 — — — 600,527 Property management 458,292 — — (5,732) 452,560 Valuation 177,198 — — — 177,198 Commercial mortgage origination (1) 59,149 — — — 59,149 Loan servicing (2) 13,869 — — — 13,869 Investment management — — 146,695 — 146,695 Development services — — 95,142 — 95,142 Topic 606 Revenue 2,298,650 4,843,739 241,837 (5,732) 7,378,494 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 71,276 — — — 71,276 Loan servicing 63,875 — — — 63,875 Development services (3) — — 15,901 — 15,901 Total Out of Scope of Topic 606 Revenue 135,151 — 15,901 — 151,052 Total Revenue $ 2,433,801 $ 4,843,739 $ 257,738 $ (5,732) $ 7,529,546 Nine Months Ended September 30, 2023 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 11,210,057 $ — $ — $ 11,210,057 Project management — 5,202,414 — — 5,202,414 Advisory leasing 2,350,103 — — — 2,350,103 Advisory sales 1,134,971 — — — 1,134,971 Property management 1,409,357 — — (11,700) 1,397,657 Valuation 508,433 — — — 508,433 Commercial mortgage origination (1) 93,861 — — — 93,861 Loan servicing (2) 55,106 — — — 55,106 Investment management — — 435,614 — 435,614 Development services — — 243,587 — 243,587 Topic 606 Revenue 5,551,831 16,412,471 679,201 (11,700) 22,631,803 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 174,149 — — — 174,149 Loan servicing 182,395 — — — 182,395 Development services (3) — — 10,678 — 10,678 Total Out of Scope of Topic 606 Revenue 356,544 — 10,678 — 367,222 Total Revenue $ 5,908,375 $ 16,412,471 $ 689,879 $ (11,700) $ 22,999,025 Nine Months Ended September 30, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 11,292,738 $ — $ — $ 11,292,738 Project management — 3,264,762 — — 3,264,762 Advisory leasing 2,732,045 — — — 2,732,045 Advisory sales 1,936,073 — — — 1,936,073 Property management 1,375,156 — — (12,751) 1,362,405 Valuation 554,879 — — — 554,879 Commercial mortgage origination (1) 214,333 — — — 214,333 Loan servicing (2) 41,710 — — — 41,710 Investment management — — 454,816 — 454,816 Development services — — 297,635 — 297,635 Topic 606 Revenue 6,854,196 14,557,500 752,451 (12,751) 22,151,396 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 221,345 — — — 221,345 Loan servicing 194,691 — — — 194,691 Development services (3) — — 66,325 — 66,325 Total Out of Scope of Topic 606 Revenue 416,036 — 66,325 — 482,361 Total Revenue $ 7,270,232 $ 14,557,500 $ 818,776 $ (12,751) $ 22,633,757 _______________________________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. Contract Assets and Liabilities We had contract assets totaling $503.1 million ($407.7 million of which was current) and $529.1 million ($391.6 million of which was current) as of September 30, 2023 and December 31, 2022, respectively. We had contract liabilities totaling $269.5 million ($263.1 million of which was current) and $284.3 million ($276.3 million of which was current) as of September 30, 2023 and December 31, 2022, respectively. During the three and nine months ended September 30, 2023, we recognized revenue of $27.8 million and $228.8 million that was included in the contract liability balance at December 31, 2022. The majority of contract liabilities are recognized as revenue within 90 days. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segments | Segments We organize our operations around, and publicly report our financial results on, three global business segments: (1) Advisory Services; (2) Global Workplace Solutions and (3) Real Estate Investments. In addition, we also have a “Corporate, other and elimination” segment. Our Corporate segment primarily consists of corporate headquarters costs for executive officers and certain other central functions. We track our strategic non-core non-controlling equity investments in “other” which is considered an operating segment and reported together with Corporate as it does not meet the aggregation criteria for presentation as a separate reportable segment. These activities are not allocated to the other business segments. Corporate and other also includes eliminations related to inter-segment revenue. Segment operating profit (SOP) is the measure reported to the chief operating decision marker (CODM) for purposes of making decisions about allocating resources to each segment and assessing performance of each segment. Segment operating profit represents earnings, inclusive of amounts attributable to non-controlling interest, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization and asset impairments, as well as adjustments related to the following: certain carried interest incentive compensation expense to align with the timing of associated revenue, fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in the period, costs incurred related to legal entity restructuring, efficiency and cost-reduction initiatives, integration and other costs related to acquisitions and a provision associated with Telford's fire safety remediation efforts. This metric excludes the impact of corporate overhead as these costs are reported under Corporate and other. Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue Advisory Services $ 2,012,833 $ 2,433,801 $ 5,908,375 $ 7,270,232 Global Workplace Solutions 5,648,687 4,843,739 16,412,471 14,557,500 Real Estate Investments 210,375 257,738 689,879 818,776 Corporate, other and eliminations (1) (3,849) (5,732) (11,700) (12,751) Total revenue $ 7,868,046 $ 7,529,546 $ 22,999,025 $ 22,633,757 Segment Operating Profit Advisory Services $ 277,225 $ 423,802 $ 862,400 $ 1,410,113 Global Workplace Solutions 251,269 219,406 713,606 640,438 Real Estate Investments 6,615 59,458 171,244 501,028 Total reportable segment operating profit $ 535,109 $ 702,666 $ 1,747,250 $ 2,551,579 _______________________________ (1) Eliminations represent revenue from transactions with other operating segments. See Note 12. Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net income attributable to CBRE Group, Inc. $ 190,553 $ 446,639 $ 508,849 $ 1,326,258 Net income attributable to non-controlling interests 10,392 5,041 23,322 $ 11,609 Net income 200,945 451,680 532,171 $ 1,337,867 Adjustments to increase (decrease) net income: Depreciation and amortization 149,161 142,136 465,038 453,527 Asset impairments — — — 36,756 Interest expense, net of interest income 38,206 19,957 109,603 51,301 Write-off of financing costs on extinguished debt — 1,862 — 1,862 Provision for income taxes 30,551 142,667 113,991 259,691 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (8,570) (6,161) (2,050) 9,200 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (1,300) — (4,447) Costs incurred related to legal entity restructuring 3,650 893 3,649 12,814 Integration and other costs related to acquisitions 5,858 7,716 60,436 24,046 Costs associated with efficiency and cost-reduction initiatives 4,224 18,929 144,781 18,929 Provision associated with Telford’s fire safety remediation efforts (1) — 9,479 — 46,984 Corporate and other loss (income), including eliminations 111,084 (85,192) 319,631 303,049 Total reportable segment operating profit $ 535,109 $ 702,666 $ 1,747,250 $ 2,551,579 ______________ (1) See Note 14 for additional information. Our CODM is not provided with total asset information by segment and accordingly, does not measure or allocate total assets on a segment basis. As a result, we have not disclosed any asset information by segment. Geographic Information Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue United States $ 4,274,409 $ 4,320,235 $ 12,630,108 $ 12,887,747 United Kingdom 1,100,462 970,307 3,151,875 3,002,798 All other countries 2,493,175 2,239,004 7,217,042 6,743,212 Total revenue $ 7,868,046 $ 7,529,546 $ 22,999,025 $ 22,633,757 |
Telford Fire Safety Remediation
Telford Fire Safety Remediation | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Telford Fire Safety Remediation | Telford Fire Safety Remediation On March 16, 2023, Telford Homes entered into a legally binding agreement with the U.K. government, under which Telford Homes will (1) take responsibility for performing or funding self-remediation works relating to certain life-critical fire-safety issues on all Telford Homes-constructed buildings of 11 meters in height or greater in England constructed in the last 30 years (in-scope buildings) and (2) withdraw Telford Homes-developed buildings from the government-sponsored Building Safety Fund (BSF) and Aluminum Composite Material (ACM) Funds or reimburse the government funds for the cost of remediation of in-scope buildings. The accompanying consolidated balance sheets include an estimated liability of approximately $185.1 million and $185.9 million as of September 30, 2023 and December 31, 2022, respectively, related to remediation efforts. The balance decreased as of September 30, 2023 primarily due to the movement of foreign exchange rates and certain insignificant costs incurred for work performed so far this year. We did not record any additional provision during the nine months ended September 30, 2023, as the above balance remains our best estimate of potential losses associated with overall remediation efforts. The potential liability and number of buildings affected may change as in-scope buildings are assessed, scopes of remediation are agreed with interested parties (freeholders and leaseholders) and the required remediation work is tendered for each building, all of which is anticipated to result in a lengthy process. We will continue to assess new information as it becomes available and adjust our estimated liability accordingly. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income attributable to CBRE Group, Inc. | $ 190,553 | $ 446,639 | $ 508,849 | $ 1,326,258 |
Insider Trading Arrangements
Insider Trading Arrangements - Emma E. Giamartino [Member] | 3 Months Ended |
Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | |
Name | Emma E. Giamartino |
Title | Chief Financial Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 1, 2023 |
Arrangement Duration | 395 days |
Aggregate Available | 11,680 |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Readers of this Quarterly Report on Form 10-Q (Quarterly Report) should refer to the audited financial statements and notes to consolidated financial statements of CBRE Group, Inc., a Delaware corporation (which may be referred to in these financial statements as “the company,” “we,” “us” and “our”), for the year ended December 31, 2022, which are included in our 2022 Annual Report on Form 10-K (2022 Annual Report) , filed with the United States Securities and Exchange Commission (SEC) and also available on our website (www.cbre.com), since we have omitted from this Quarterly Report certain footnote disclosures which would substantially duplicate those contained in such audited financial statements. You should also refer to Note 2, Significant Accounting Policies, in the notes to consolidated financial statements in our 2022 Annual Report for further discussion of our significant accounting policies and estimates. Considerations Related to Current Macroeconomic Conditions The macroeconomic environment remains challenging as central banks rapidly raised interest rates since 2022. The high rate environment and the expectation that rates will remain higher for longer, coupled with large bank failures in early 2023 and ongoing economic uncertainty, has limited credit availability to commercial real estate. Less available and more expensive debt capital has had pronounced effects on our capital markets (mortgage origination and property sales) businesses, making property acquisitions and dispositions harder to finance. Similar factors also impact the timing and value of asset and fund monetization in our investment management and development businesses and our ability to source new debt capital to fund development projects. Financial Statement Preparation |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions about future events, such as weakening global macroeconomic conditions and stress in the banking system, including less available and more expensive debt capital. These estimates and the underlying assumptions affect the reported amounts of assets, liabilities, revenues and expenses. Such estimates include the value of goodwill, intangibles and other long-lived assets, real estate assets, accounts receivable, contract assets, operating lease assets, investments in unconsolidated subsidiaries and assumptions used in the calculation of income taxes, retirement and other post-employment benefits, among others. These estimates and assumptions are based on our best judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including consideration of the current economic environment, and adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Recent Accounting Pronouncements Pending Adoption | Recent Accounting Pronouncements Pending Adoption In June 2022, the Financial Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, “ Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restriction s.” Topic 820, Fair Value Measurement, states that a reporting entity should consider the characteristics of the asset or liability when measuring the fair value, including restrictions on the sale of the asset or liability, if a market participant would take those characteristics into account and the key to that determination is the unit of account for the asset or liability being measured at fair value. Topic 820 contains conflicting guidance on what the unit of account is when measuring the fair value of an equity security and this has resulted in diversity in practice on whether the effects of a contractual restriction that prohibits the sale of an equity security should be considered in measuring the equity security’s fair value. To address this, the amendments in the ASU clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU introduces new disclosure requirements to provide investors with information about the restriction including the nature and remaining duration of the restriction. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-01, “Leases (Topic 842): Common Control Arrangements.” This update requires that leasehold improvements associated with common control leases be amortized over the useful life of the leasehold improvements to the common control group (regardless of the lease term) and accounted for as a transfer between entities under common control through an adjustment to equity if, and when, the lessee no longer controls the use of the underlying asset. This update also provides a practical expedient for private companies and not-for-profit entities to use written terms and conditions of a common control arrangement to determine if a lease exists and the classification and accounting for that lease. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. In March 2023, the FASB issued ASU 2023-02, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization method.” This update permits an accounting election to account for tax equity investments, regardless of the tax credit program from which the income tax credits are received, using the proportional amortization method if certain conditions are met. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. We are evaluating the effect that this guidance will have on our consolidated financial statements and related disclosures, but do not expect it to have a material impact. |
Warehouse Receivables & Wareh_2
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Warehouse Receivables And Warehouse Lines Of Credit [Abstract] | |
Schedule of Warehouse Receivables | A rollforward of our warehouse receivables is as follows (dollars in thousands): Beginning balance at December 31, 2022 $ 455,354 Origination of mortgage loans 7,610,859 Gains (premiums on loan sales) 19,611 Proceeds from sale of mortgage loans: Sale of mortgage loans (7,061,390) Cash collections of premiums on loan sales (19,611) Proceeds from sale of mortgage loans (7,081,001) Net increase in mortgage servicing rights included in warehouse receivables 5,836 Ending balance at September 30, 2023 $ 1,010,659 |
Schedule of Warehouse Lines of Credit in Place | The following table is a summary of our warehouse lines of credit in place as of September 30, 2023 and December 31, 2022 (dollars in thousands): September 30, 2023 December 31, 2022 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) 12/15/2023 daily floating rate Secured Overnight Financing Rate (SOFR) rate plus 1.60%, with a SOFR adjustment rate of 0.05% $ 1,335,000 $ 841,189 $ 1,335,000 $ 330,509 JP Morgan (Business Lending Activity) 12/15/2023 daily floating rate SOFR rate plus 2.75%, with a SOFR adjustment rate of 0.05% 15,000 — 15,000 — Fannie Mae Multifamily As Soon As Pooled Plus Agreement and Multifamily As Soon As Pooled Sale Agreement (ASAP) Program Cancelable daily one-month LIBOR plus 1.45%, with a LIBOR floor of 0.25% 650,000 55,697 650,000 — TD Bank, N.A. (TD Bank) (1) 7/15/2024 daily floating rate SOFR rate 1.30%, with a SOFR adjustment rate of 0.10% 600,000 24,532 800,000 — Bank of America, N.A. (BofA) (2) 5/22/2024 daily floating rate SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% 350,000 72,701 350,000 115,206 BofA (3) 5/22/2024 daily floating rate SOFR rate 1.25%, with a SOFR adjustment rate of 0.10% 250,000 — 250,000 — MUFG Union Bank, N.A. (Union Bank) (4) — — 200,000 2,125 $ 3,200,000 $ 994,119 $ 3,600,000 $ 447,840 _______________________________ (1) Effective July 15, 2022, this facility was amended with a revised interest rate of daily floating rate SOFR rate plus 1.30%, with a SOFR adjustment rate of 0.10% and a maturity date of July 15, 2023. Effective July 15, 2023, this facility was renewed and amended to a maximum aggregate principal amount of $300.0 million, with an uncommitted $300.0 million temporary line of credit and a maturity date of July 15, 2024. As of September 30, 2023, the uncommitted $300.0 million temporary line of credit was not utilized. (2) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate of SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 22, 2024. (3) Effective September 1, 2023, this facility was amended with a downward revised interest rate of daily floating rate of SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 22, 2024. (4) This facility expired on June 27, 2023, and was not renewed. |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of September 30, 2023 and December 31, 2022, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): September 30, December 31, Investments in unconsolidated subsidiaries $ 163,483 $ 152,762 Co-investment commitments 62,907 83,835 Maximum exposure to loss $ 226,390 $ 236,597 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 (dollars in thousands): As of September 30, 2023 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 12,152 $ — $ — $ 12,152 Debt securities issued by U.S. federal agencies — 10,966 — 10,966 Corporate debt securities — 45,410 — 45,410 Asset-backed securities — 1,382 — 1,382 Total available for sale debt securities 12,152 57,758 — 69,910 Equity securities 38,561 — — 38,561 Investments in unconsolidated subsidiaries 128,919 — 446,291 575,210 Warehouse receivables — 1,010,659 — 1,010,659 Other assets — — 25,213 25,213 Total assets at fair value $ 179,632 $ 1,068,417 $ 471,504 $ 1,719,553 As of December 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale debt securities: U.S. treasury securities $ 6,164 $ — $ — $ 6,164 Debt securities issued by U.S. federal agencies — 8,249 — 8,249 Corporate debt securities — 44,091 — 44,091 Asset-backed securities — 3,201 — 3,201 Total available for sale debt securities 6,164 55,541 — 61,705 Equity securities 33,724 — — 33,724 Investments in unconsolidated subsidiaries 160,093 — 460,540 620,633 Warehouse receivables — 455,354 — 455,354 Other assets — — 14,452 14,452 Total assets at fair value $ 199,981 $ 510,895 $ 474,992 $ 1,185,868 |
Schedule of Reconciliation for Assets Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other assets Balance as of June 30, 2023 $ 452,887 $ 23,535 Transfer in (out) — — Net change in fair value (6,596) 900 Purchases / Additions — 778 Balance as of September 30, 2023 $ 446,291 $ 25,213 Balance as of December 31, 2022 $ 460,540 $ 14,452 Transfer in (out) (230) — Net change in fair value (14,019) 4,400 Purchases / Additions — 6,361 Balance as of September 30, 2023 $ 446,291 $ 25,213 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other assets (liabilities) Other income (loss) |
Schedule of Reconciliation for Liabilities Measured at Fair Value | The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in thousands): Investment in Unconsolidated Subsidiaries Other assets Balance as of June 30, 2023 $ 452,887 $ 23,535 Transfer in (out) — — Net change in fair value (6,596) 900 Purchases / Additions — 778 Balance as of September 30, 2023 $ 446,291 $ 25,213 Balance as of December 31, 2022 $ 460,540 $ 14,452 Transfer in (out) (230) — Net change in fair value (14,019) 4,400 Purchases / Additions — 6,361 Balance as of September 30, 2023 $ 446,291 $ 25,213 Net change in fair value, included in the table above, is reported in Net income as follows: Category of Assets/Liabilities using Unobservable Inputs Consolidated Statements of Operations Investments in unconsolidated subsidiaries Equity income from unconsolidated subsidiaries Other assets (liabilities) Other income (loss) |
Schedule of Fair Value Measurement Inputs and Valuation Techniques | The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments as of September 30, 2023 : Valuation Technique Unobservable Input Range Weighted Average Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 24.5 % — Monte Carlo Volatility 40.0% - 68.0% 41.8 % Risk free interest rate 4.54% - 4.65% Discount Yield 25.0 % — Other assets Discounted cash flow Discount rate 24.5 % — |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments in Unconsolidated Subsidiaries | The following table represents the composition of investment in unconsolidated subsidiaries under equity method of accounting and fair value option (dollars in thousands): Investment type September 30, 2023 December 31, 2022 Real Estate Investments (in projects and funds) $ 671,005 $ 622,826 Investment in Altus: Class A common stock (1) 128,919 160,093 Alignment shares (2) 38,763 59,530 Subtotal 167,682 219,624 Other (3) 477,708 475,256 Total investment in unconsolidated subsidiaries $ 1,316,395 $ 1,317,705 _______________ (1) CBRE held 24,556,012 and 24,554,201 shares of Altus Class A common stock as of September 30, 2023 and December 31, 2022, respectively. (2) The alignment shares, also known as Class B common shares, will automatically convert into Altus Class A common shares based on the achievement of certain total return thresholds on Altus Class A common shares as of the relevant measurement date over the seven ears following the merger. As of March 31, 2023 (the second measurement date), 201,250 alignment shares automatically converted into 2,011 shares of Class A common stock, of which CBRE was entitled to 1,811 shares. (3) Consists of our investments in Industrious and other non-public entities. Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue $ 785,513 $ 688,584 $ 5,443,017 $ 1,916,277 Operating income 241,717 280,290 3,810,488 745,676 Net (loss) income (1) (464,499) 937,221 107,347 3,889,302 _______________ (1) Included in net (loss) income are realized and unrealized earnings and losses in investments in unconsolidated investment funds and realized earnings and losses from sales of real estate projects in investments in unconsolidated subsidiaries. These realized and unrealized earnings and losses are not included in revenue and operating income. |
Long-Term Debt and Short-Term_2
Long-Term Debt and Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (dollars in thousands): September 30, December 31, Senior term loans $ 737,626 $ 427,792 5.950% senior notes due in 2034, net of unamortized discount 975,482 — 4.875% senior notes due in 2026, net of unamortized discount 598,736 598,374 2.500% senior notes due in 2031, net of unamortized discount 494,015 493,476 Total long-term debt 2,805,859 1,519,642 Less: current maturities of long-term debt — 427,792 Less: unamortized debt issuance costs 10,004 6,138 Total long-term debt, net of current maturities $ 2,795,855 $ 1,085,712 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to our leases is as follows (dollars in thousands): Category Classification September 30, December 31, Assets Operating Operating lease assets $ 998,733 $ 1,033,011 Financing Other assets, net 97,133 91,028 Total leased assets $ 1,095,866 $ 1,124,039 Liabilities Current: Operating Operating lease liabilities $ 238,904 $ 229,591 Financing Other current liabilities 32,797 33,039 Non-current: Operating Non-current operating lease liabilities 1,059,631 1,080,385 Financing Other liabilities 64,881 58,094 Total lease liabilities $ 1,396,213 $ 1,401,109 |
Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases | Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in thousands): Nine Months Ended 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 115,898 $ 108,649 Right-of-use assets obtained in exchange for new financing lease liabilities 37,065 21,331 Other non-cash (decreases) increases in operating lease right-of-use assets (1) (6,818) 37,741 Other non-cash (decreases) increases in financing lease right-of-use assets (1) (2,168) 5,444 _______________________________ |
Income Per Share and Stockhol_2
Income Per Share and Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share And Stockholders Equity [Abstract] | |
Schedule of Calculations of Basic and Diluted Income Per Share | The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in thousands, except share and per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 190,553 $ 446,639 $ 508,849 $ 1,326,258 Weighted average shares outstanding for basic income per share 307,854,518 319,827,769 309,716,456 325,705,500 Basic income per share attributable to CBRE Group, Inc. stockholders $ 0.62 $ 1.40 $ 1.64 $ 4.07 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 190,553 $ 446,639 $ 508,849 $ 1,326,258 Weighted average shares outstanding for basic income per share 307,854,518 319,827,769 309,716,456 325,705,500 Dilutive effect of contingently issuable shares 4,366,615 4,914,815 4,228,399 4,852,814 Weighted average shares outstanding for diluted income per share 312,221,133 324,742,584 313,944,855 330,558,314 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 0.61 $ 1.38 $ 1.62 $ 4.01 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue from Contracts with Customers | The following tables represent a disaggregation of revenue from contracts with customers by type of service and/or segment (dollars in thousands): Three Months Ended September 30, 2023 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,843,347 $ — $ — $ 3,843,347 Project management — 1,805,340 — — 1,805,340 Advisory leasing 827,498 — — — 827,498 Advisory sales 369,819 — — — 369,819 Property management 464,958 — — (3,849) 461,109 Valuation 163,101 — — — 163,101 Commercial mortgage origination (1) 36,903 — — — 36,903 Loan servicing (2) 19,445 — — — 19,445 Investment management — — 136,797 — 136,797 Development services — — 66,475 — 66,475 Topic 606 Revenue 1,881,724 5,648,687 203,272 (3,849) 7,729,834 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 69,882 — — — 69,882 Loan servicing 61,227 — — — 61,227 Development services (3) — — 7,103 — 7,103 Total Out of Scope of Topic 606 Revenue 131,109 — 7,103 — 138,212 Total Revenue $ 2,012,833 $ 5,648,687 $ 210,375 $ (3,849) $ 7,868,046 Three Months Ended September 30, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,671,930 $ — $ — $ 3,671,930 Project management — 1,171,809 — — 1,171,809 Advisory leasing 989,615 — — — 989,615 Advisory sales 600,527 — — — 600,527 Property management 458,292 — — (5,732) 452,560 Valuation 177,198 — — — 177,198 Commercial mortgage origination (1) 59,149 — — — 59,149 Loan servicing (2) 13,869 — — — 13,869 Investment management — — 146,695 — 146,695 Development services — — 95,142 — 95,142 Topic 606 Revenue 2,298,650 4,843,739 241,837 (5,732) 7,378,494 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 71,276 — — — 71,276 Loan servicing 63,875 — — — 63,875 Development services (3) — — 15,901 — 15,901 Total Out of Scope of Topic 606 Revenue 135,151 — 15,901 — 151,052 Total Revenue $ 2,433,801 $ 4,843,739 $ 257,738 $ (5,732) $ 7,529,546 Nine Months Ended September 30, 2023 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 11,210,057 $ — $ — $ 11,210,057 Project management — 5,202,414 — — 5,202,414 Advisory leasing 2,350,103 — — — 2,350,103 Advisory sales 1,134,971 — — — 1,134,971 Property management 1,409,357 — — (11,700) 1,397,657 Valuation 508,433 — — — 508,433 Commercial mortgage origination (1) 93,861 — — — 93,861 Loan servicing (2) 55,106 — — — 55,106 Investment management — — 435,614 — 435,614 Development services — — 243,587 — 243,587 Topic 606 Revenue 5,551,831 16,412,471 679,201 (11,700) 22,631,803 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 174,149 — — — 174,149 Loan servicing 182,395 — — — 182,395 Development services (3) — — 10,678 — 10,678 Total Out of Scope of Topic 606 Revenue 356,544 — 10,678 — 367,222 Total Revenue $ 5,908,375 $ 16,412,471 $ 689,879 $ (11,700) $ 22,999,025 Nine Months Ended September 30, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 11,292,738 $ — $ — $ 11,292,738 Project management — 3,264,762 — — 3,264,762 Advisory leasing 2,732,045 — — — 2,732,045 Advisory sales 1,936,073 — — — 1,936,073 Property management 1,375,156 — — (12,751) 1,362,405 Valuation 554,879 — — — 554,879 Commercial mortgage origination (1) 214,333 — — — 214,333 Loan servicing (2) 41,710 — — — 41,710 Investment management — — 454,816 — 454,816 Development services — — 297,635 — 297,635 Topic 606 Revenue 6,854,196 14,557,500 752,451 (12,751) 22,151,396 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 221,345 — — — 221,345 Loan servicing 194,691 — — — 194,691 Development services (3) — — 66,325 — 66,325 Total Out of Scope of Topic 606 Revenue 416,036 — 66,325 — 482,361 Total Revenue $ 7,270,232 $ 14,557,500 $ 818,776 $ (12,751) $ 22,633,757 _______________________________ (1) We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606. (2) Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606. (3) Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842. |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Summarized Financial Information by Segment | Summarized financial information by segment is as follows (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue Advisory Services $ 2,012,833 $ 2,433,801 $ 5,908,375 $ 7,270,232 Global Workplace Solutions 5,648,687 4,843,739 16,412,471 14,557,500 Real Estate Investments 210,375 257,738 689,879 818,776 Corporate, other and eliminations (1) (3,849) (5,732) (11,700) (12,751) Total revenue $ 7,868,046 $ 7,529,546 $ 22,999,025 $ 22,633,757 Segment Operating Profit Advisory Services $ 277,225 $ 423,802 $ 862,400 $ 1,410,113 Global Workplace Solutions 251,269 219,406 713,606 640,438 Real Estate Investments 6,615 59,458 171,244 501,028 Total reportable segment operating profit $ 535,109 $ 702,666 $ 1,747,250 $ 2,551,579 _______________________________ (1) Eliminations represent revenue from transactions with other operating segments. See Note 12. |
Schedule of Reconciliation of Reportable Segment Operating Profit to Net Income | Reconciliation of total reportable segment operating profit to net income is as follows (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Net income attributable to CBRE Group, Inc. $ 190,553 $ 446,639 $ 508,849 $ 1,326,258 Net income attributable to non-controlling interests 10,392 5,041 23,322 $ 11,609 Net income 200,945 451,680 532,171 $ 1,337,867 Adjustments to increase (decrease) net income: Depreciation and amortization 149,161 142,136 465,038 453,527 Asset impairments — — — 36,756 Interest expense, net of interest income 38,206 19,957 109,603 51,301 Write-off of financing costs on extinguished debt — 1,862 — 1,862 Provision for income taxes 30,551 142,667 113,991 259,691 Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue (8,570) (6,161) (2,050) 9,200 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (1,300) — (4,447) Costs incurred related to legal entity restructuring 3,650 893 3,649 12,814 Integration and other costs related to acquisitions 5,858 7,716 60,436 24,046 Costs associated with efficiency and cost-reduction initiatives 4,224 18,929 144,781 18,929 Provision associated with Telford’s fire safety remediation efforts (1) — 9,479 — 46,984 Corporate and other loss (income), including eliminations 111,084 (85,192) 319,631 303,049 Total reportable segment operating profit $ 535,109 $ 702,666 $ 1,747,250 $ 2,551,579 ______________ (1) See Note 14 for additional information. |
Schedule of Geographic Information | Revenue in the table below is allocated based upon the country in which services are performed (dollars in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue United States $ 4,274,409 $ 4,320,235 $ 12,630,108 $ 12,887,747 United Kingdom 1,100,462 970,307 3,151,875 3,002,798 All other countries 2,493,175 2,239,004 7,217,042 6,743,212 Total revenue $ 7,868,046 $ 7,529,546 $ 22,999,025 $ 22,633,757 |
Warehouse Receivables & Wareh_3
Warehouse Receivables & Warehouse Lines of Credit - Additional Information (Details) - Warehouse Agreement Borrowings $ in Billions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Short-term Debt [Line Items] | |
Period of repayment for warehouse lines of credit | 1 month |
Lines of credit principal outstanding | $ 1.2 |
Warehouse Receivables & Wareh_4
Warehouse Receivables & Warehouse Lines of Credit - Warehouse Receivables Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Warehouse Receivables Activity [Roll Forward] | ||
Beginning balance | $ 455,354 | |
Origination of mortgage loans | 7,610,859 | $ 10,559,591 |
Gains (premiums on loan sales) | 19,611 | |
Proceeds from sale of mortgage loans: | ||
Sale of mortgage loans | (7,061,390) | |
Cash collections of premiums on loan sales | (19,611) | |
Proceeds from sale of mortgage loans | (7,081,001) | $ (10,696,971) |
Net increase in mortgage servicing rights included in warehouse receivables | 5,836 | |
Ending balance | $ 1,010,659 |
Warehouse Receivables & Wareh_5
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Details) - USD ($) | 9 Months Ended | |||
Sep. 01, 2023 | Jul. 15, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | ||||
Carrying Value | $ 994,119,000 | $ 447,840,000 | ||
Revolving credit facility | 673,000,000 | 178,000,000 | ||
Warehouse Agreement Borrowings | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | 3,200,000,000 | 3,600,000,000 | ||
Carrying Value | 994,119,000 | 447,840,000 | ||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | 1,335,000,000 | 1,335,000,000 | ||
Carrying Value | $ 841,189,000 | 330,509,000 | ||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 1.60% | |||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 0.05% | |||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan, Pricing | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | $ 15,000,000 | 15,000,000 | ||
Carrying Value | $ 0 | 0 | ||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan, Pricing | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 2.75% | |||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan, Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 0.05% | |||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | Fannie Mae Multifamily ASAP Program, Pricing | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | $ 650,000,000 | 650,000,000 | ||
Carrying Value | $ 55,697,000 | 0 | ||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | Fannie Mae Multifamily ASAP Program, Pricing | London Interbank Offered Rate (LIBOR) | Maximum | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 1.45% | |||
Warehouse Agreement Borrowings | Fannie Mae ASAP Program | Fannie Mae Multifamily ASAP Program, Pricing | London Interbank Offered Rate (LIBOR) | Minimum | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 0.25% | |||
Warehouse Agreement Borrowings | TD Bank | TD Bank, Pricing | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | $ 300,000,000 | $ 600,000,000 | 800,000,000 | |
Carrying Value | 24,532,000 | 0 | ||
Revolving credit facility | $ 300,000,000 | $ 300,000,000 | ||
Warehouse Agreement Borrowings | TD Bank | TD Bank, Pricing | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 1.30% | 1.30% | ||
Warehouse Agreement Borrowings | TD Bank | TD Bank, Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 0.10% | 0.10% | ||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | $ 350,000,000 | 350,000,000 | ||
Carrying Value | $ 72,701,000 | 115,206,000 | ||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 1.25% | |||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | Secured Overnight Financing Rate (SOFR) Adjustment | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 0.10% | 0.10% | ||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | London Interbank Offered Rate (LIBOR) | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 1.25% | |||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | $ 250,000,000 | 250,000,000 | ||
Carrying Value | $ 0 | 0 | ||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 1.25% | |||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | Secured Overnight Financing Rate (SOFR) Adjustment | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 0.10% | 0.10% | ||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | London Interbank Offered Rate (LIBOR) | ||||
Short-term Debt [Line Items] | ||||
Variable rate (as a percent) | 1.25% | |||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | MUFG Union Bank, N.A. (Union Bank), Pricing | ||||
Short-term Debt [Line Items] | ||||
Maximum Facility Size | $ 0 | 200,000,000 | ||
Carrying Value | $ 0 | $ 2,125,000 |
Variable Interest Entities (V_3
Variable Interest Entities (VIEs) (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 163,483 | $ 152,762 |
Co-investment commitments | 62,907 | 83,835 |
Maximum exposure to loss | $ 226,390 | $ 236,597 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Investments in unconsolidated subsidiaries | $ 920,655 | $ 973,635 |
Warehouse receivables | 1,010,659 | 455,354 |
Recurring | ||
Assets | ||
Available for sale debt securities | 69,910 | 61,705 |
Equity securities | 38,561 | 33,724 |
Investments in unconsolidated subsidiaries | 575,210 | 620,633 |
Warehouse receivables | 1,010,659 | 455,354 |
Other assets | 25,213 | 14,452 |
Total assets at fair value | 1,719,553 | 1,185,868 |
Recurring | Level 1 | ||
Assets | ||
Available for sale debt securities | 12,152 | 6,164 |
Equity securities | 38,561 | 33,724 |
Investments in unconsolidated subsidiaries | 128,919 | 160,093 |
Warehouse receivables | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | 179,632 | 199,981 |
Recurring | Level 2 | ||
Assets | ||
Available for sale debt securities | 57,758 | 55,541 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 0 | 0 |
Warehouse receivables | 1,010,659 | 455,354 |
Other assets | 0 | 0 |
Total assets at fair value | 1,068,417 | 510,895 |
Recurring | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 446,291 | 460,540 |
Warehouse receivables | 0 | 0 |
Other assets | 25,213 | 14,452 |
Total assets at fair value | 471,504 | 474,992 |
Recurring | U.S. treasury securities | ||
Assets | ||
Available for sale debt securities | 12,152 | 6,164 |
Recurring | U.S. treasury securities | Level 1 | ||
Assets | ||
Available for sale debt securities | 12,152 | 6,164 |
Recurring | U.S. treasury securities | Level 2 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | U.S. treasury securities | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | ||
Assets | ||
Available for sale debt securities | 10,966 | 8,249 |
Recurring | Debt securities issued by U.S. federal agencies | Level 1 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Debt securities issued by U.S. federal agencies | Level 2 | ||
Assets | ||
Available for sale debt securities | 10,966 | 8,249 |
Recurring | Debt securities issued by U.S. federal agencies | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | ||
Assets | ||
Available for sale debt securities | 45,410 | 44,091 |
Recurring | Corporate debt securities | Level 1 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Corporate debt securities | Level 2 | ||
Assets | ||
Available for sale debt securities | 45,410 | 44,091 |
Recurring | Corporate debt securities | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | ||
Assets | ||
Available for sale debt securities | 1,382 | 3,201 |
Recurring | Asset-backed securities | Level 1 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Recurring | Asset-backed securities | Level 2 | ||
Assets | ||
Available for sale debt securities | 1,382 | 3,201 |
Recurring | Asset-backed securities | Level 3 | ||
Assets | ||
Available for sale debt securities | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 10, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Investment in VTS | $ 0 | $ (100,432) | ||||
Investments in unconsolidated subsidiaries at fair value using NAV | $ 345,400 | 345,400 | $ 353,000 | |||
Asset impairments | 0 | $ 0 | 0 | $ 36,756 | ||
Non-public entity designated as trading debt security | 10,000 | 10,000 | ||||
Notes payable on real estate | 27,900 | 27,900 | 52,700 | |||
Non-Marketable Equity Investments | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Other investment, net | (122,700) | (122,700) | ||||
Recurring | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Total liabilities at fair value | $ 0 | $ 0 | 0 | |||
2023 Credit Agreement with Wells Fargo | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate | 1,000% | |||||
2023 Credit Agreement with Wells Fargo | Unsecured Debt | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt agreement term | 5 years | |||||
5.950% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate | 5.95% | 5.95% | ||||
4.875% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate | 4.875% | 4.875% | ||||
2.500% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Interest rate | 2.50% | 2.50% | ||||
Estimated Fair Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior term loans | $ 726,500 | $ 726,500 | 424,600 | |||
Estimated Fair Value | 5.950% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior notes | 944,300 | 944,300 | ||||
Estimated Fair Value | 4.875% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior notes | 583,800 | 583,800 | 595,200 | |||
Estimated Fair Value | 2.500% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior notes | 387,300 | 387,300 | 396,800 | |||
Actual Carrying Value | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior term loans | 735,200 | 735,200 | 427,800 | |||
Actual Carrying Value | 5.950% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior notes | 973,300 | 973,300 | ||||
Actual Carrying Value | 4.875% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior notes | 597,200 | 597,200 | 596,400 | |||
Actual Carrying Value | 2.500% Senior Notes | Senior Notes | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Senior notes | $ 490,100 | $ 490,100 | $ 489,300 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation for Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | |
Investment in Unconsolidated Subsidiaries | ||
Investment in Unconsolidated Subsidiaries | ||
Beginning balance | $ 452,887 | $ 460,540 |
Transfer in (out) | 0 | |
Transfer in (out) | (230) | |
Net change in fair value | (6,596) | (14,019) |
Purchases / Additions | 0 | 0 |
Ending balance | 446,291 | 446,291 |
Other assets | ||
Other assets | ||
Beginning balance | 23,535 | 14,452 |
Transfer in (out) | 0 | |
Transfer in (out) | 0 | |
Net change in fair value | 900 | 4,400 |
Purchases / Additions | 778 | 6,361 |
Ending balance | $ 25,213 | $ 25,213 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) | Sep. 30, 2023 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.245 |
Weighted average, measurement input | 0% |
Other assets, measurement input | 0.245 |
Other assets, weighted average, measurement input | 0% |
Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average, measurement input | 41.80% |
Volatility | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.400 |
Volatility | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.680 |
Risk free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average, measurement input | |
Risk free interest rate | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.0454 |
Risk free interest rate | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.0465 |
Discount Yield | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.250 |
Weighted average, measurement input | 0% |
Investments in Unconsolidated_3
Investments in Unconsolidated Subsidiaries - Additional Information (Details) - Ownership Percentage | Sep. 30, 2023 |
Minimum | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 1% |
Maximum | |
Schedule of Equity Method Investments [Line Items] | |
Equity method investments in unconsolidated subsidiaries, variations in ownership percentage | 50% |
Investments in Unconsolidated_4
Investments in Unconsolidated Subsidiaries - Equity Method Investments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 1,316,395 | $ 1,317,705 | |
Alignment shares, relevant measurement period following merger (in years) | 7 years | ||
Real Estate Investments (in projects and funds) | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 671,005 | 622,826 | |
Altus Power, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 167,682 | $ 219,624 | |
Common stock shares (in shares) | 24,556,012 | 24,554,201 | |
Altus Power, Inc. | Class A common stock | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 128,919 | $ 160,093 | |
Shares converted to Class A common stock (in shares) | 2,011 | ||
Altus Power, Inc. | Class A common stock | Parent Company | |||
Schedule of Equity Method Investments [Line Items] | |||
Shares converted to Class A common stock (in shares) | 1,811 | ||
Altus Power, Inc. | Alignment Shares | |||
Schedule of Equity Method Investments [Line Items] | |||
Alignment shares converted (in shares) | 201,250 | ||
Alignment shares | Alignment Shares | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | 38,763 | 59,530 | |
Other | |||
Schedule of Equity Method Investments [Line Items] | |||
Total investment in unconsolidated subsidiaries | $ 477,708 | $ 475,256 |
Investments in Unconsolidated_5
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Financial Information of Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | $ 7,868,046 | $ 7,529,546 | $ 22,999,025 | $ 22,633,757 |
Operating income | 269,435 | 374,350 | 613,234 | 1,268,239 |
Net (loss) income | 200,945 | 451,680 | 532,171 | 1,337,867 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Revenue | 785,513 | 688,584 | 5,443,017 | 1,916,277 |
Operating income | 241,717 | 280,290 | 3,810,488 | 745,676 |
Net (loss) income | $ (464,499) | $ 937,221 | $ 107,347 | $ 3,889,302 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 2,805,859 | $ 1,519,642 |
Less: current maturities of long-term debt | 0 | 427,792 |
Less: unamortized debt issuance costs | 10,004 | 6,138 |
Total long-term debt, net of current maturities | 2,795,855 | 1,085,712 |
Senior Secured Term Loans | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 737,626 | 427,792 |
5.950% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.95% | |
Total long-term debt | $ 975,482 | 0 |
4.875% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.875% | |
Total long-term debt | $ 598,736 | 598,374 |
2.500% Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 2.50% | |
Total long-term debt | $ 494,015 | $ 493,476 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Additional Information (Details) | 9 Months Ended | ||||||||
Jul. 10, 2023 USD ($) | Jun. 23, 2023 USD ($) | Aug. 05, 2022 USD ($) | Aug. 13, 2015 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2023 EUR (€) | Jul. 10, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Mar. 18, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||
Letters of credit outstanding amount | $ 236,400,000 | ||||||||
Revolving credit facility | $ 673,000,000 | $ 178,000,000 | |||||||
Revolving Credit Agreement | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 2% | ||||||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 4.25% | ||||||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 4.75% | ||||||||
2023 Credit Agreement with Wells Fargo | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1,000% | 1,000% | |||||||
Minimum coverage ratio of EBITDA to total interest expense expressed in percentage | 2% | ||||||||
Maximum leverage ratio of total debt less available cash to EBITDA expressed in percentage | 4.25% | ||||||||
Maximum leverage ratio during first four quarter that qualified acquisition is consummated | 4.75% | ||||||||
2023 Credit Agreement with Wells Fargo | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 1% | ||||||||
2023 Credit Agreement with Wells Fargo | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 0.50% | ||||||||
2023 Credit Agreement with Wells Fargo | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt agreement term | 5 years | ||||||||
2023 Credit Agreement with Wells Fargo, Tranche A Euro Denominated Term Loan | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | € | € 366,500,000 | ||||||||
2023 Credit Agreement with Wells Fargo, Tranche A, US Dollar Denominated Term Loan | Unsecured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 350,000,000 | ||||||||
5.950% Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 1,000,000,000 | ||||||||
Interest rate | 5.95% | 5.95% | |||||||
Percentage of face value | 98.174% | ||||||||
5.950% Senior Notes | Senior Notes | On Or After January 1, 2031 | |||||||||
Debt Instrument [Line Items] | |||||||||
Redemption price percentage | 100% | ||||||||
5.950% Senior Notes | Senior Notes | US Treasury (UST) Interest Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Semi-annual basis adjustment (basis points) | 0.40% | ||||||||
2.500% Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 500,000,000 | ||||||||
Interest rate | 2.50% | 2.50% | |||||||
Percentage of face value | 98.451% | ||||||||
4.875% Senior Notes | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 600,000,000 | ||||||||
Interest rate | 4.875% | 4.875% | |||||||
Redemption price percentage | 99.24% | ||||||||
Revolving Credit Facility | 2021 Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt agreement term | 5 years | ||||||||
Amounts available to borrow under credit agreement | $ 3,150,000,000 | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt agreement term | 5 years | ||||||||
Amounts available to borrow under credit agreement | $ 3,500,000,000 | ||||||||
Interest rate | 1,000% | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of credit outstanding amount | $ 300,000,000 | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 1% | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 0.63% | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 1.10% | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | Base Rate | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 0% | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | Base Rate | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 0.10% | ||||||||
Revolving Credit Facility | Revolving Credit Agreement | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable rate (as a percent) | 0.50% | ||||||||
Revolving Credit Facility | 2019 Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility | 673,000,000 | ||||||||
Revolving Credit Facility | 2019 Credit Agreement | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Letters of credit outstanding amount | 0 | ||||||||
Revolving Credit Facility | 2027 Credit Agreement | Turner & Townsend | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available to borrow under credit agreement | € | € 120,000,000 | ||||||||
Revolving credit facility | 0 | ||||||||
Additional accordion option | € | 20,000,000 | ||||||||
Euro Term Loan Facility | 2021 Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | € | € 400,000,000 | ||||||||
Euro Term Loan Facility | 2023 Credit Agreement with Wells Fargo | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | $ 387,100,000 | ||||||||
Euro Term Loan Facility | 2023 Credit Agreement with Wells Fargo | Europe Interbank Offered Rate (EURIBOR) | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.25% | 1.25% | |||||||
U.S. Dollar Term Loan | 2023 Credit Agreement with Wells Fargo | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings outstanding | $ 348,100,000 | ||||||||
U.S. Dollar Term Loan | 2023 Credit Agreement with Wells Fargo | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 1.35% | 1.35% |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Operating | $ 998,733 | $ 1,033,011 |
Financing | 97,133 | 91,028 |
Total leased assets | $ 1,095,866 | $ 1,124,039 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Current: | ||
Operating | $ 238,904 | $ 229,591 |
Financing | $ 32,797 | $ 33,039 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Non-current: | ||
Operating | $ 1,059,631 | $ 1,080,385 |
Financing | $ 64,881 | $ 58,094 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total lease liabilities | $ 1,396,213 | $ 1,401,109 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 115,898 | $ 108,649 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 37,065 | 21,331 |
Other non-cash (decreases) increases in operating lease right-of-use assets | (6,818) | 37,741 |
Other non-cash (decreases) increases in financing lease right-of-use assets | $ (2,168) | $ 5,444 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | $ 41,100 | |
Letters of credit outstanding | 236.4 | |
Accrued loan loss | 68.1 | $ 65.1 |
Assets available for recourse | 981.8 | |
Guarantees total | 198.4 | |
Commitments to investment in future real estate investment | $ 116.9 | |
Maximum Future Commitments Equity In Real Estate Investment, Percent | 2% | |
Commitments to investment in future real estate investment | 0.50 | |
Commitment to investment in consolidated projects | $ 200.7 | |
Commitments to investment in unconsolidated real estate subsidiary | 95.5 | |
Warehouse Receivable | ||
Loss Contingencies [Line Items] | ||
Warehouse receivables | 529.2 | |
Funded Loan Subject to Loss Sharing Arrangements | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | 37,500 | |
Letters of credit outstanding | 140 | 113 |
SBL Program | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 5 | $ 5 |
Percentage of maximum original principal amount loan loss | 10% | |
Funded Loan Not Subject to Loss Sharing Arrangements | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 145 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |||||
Provision for income taxes | $ 30,551 | $ 142,667 | $ 113,991 | $ 259,691 | |
Increase (decrease) in income taxes | $ (112,100) | $ (145,700) | |||
Effective tax rate | 13.20% | 24% | 16.30% | ||
Federal statutory tax rate | 21% | 21% | |||
Unrecognized tax benefits | $ 402,600 | $ 402,600 | $ 391,400 | ||
Increase (decrease) in unrecognized tax benefits | $ 11,200 | ||||
Maximum | |||||
Income Tax Contingency [Line Items] | |||||
Effective tax rate | 17.60% |
Income Per Share and Stockhol_3
Income Per Share and Stockholders' Equity - Calculations of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Basic Income Per Share | ||||
Net income attributable to CBRE Group, Inc. stockholders | $ 190,553 | $ 446,639 | $ 508,849 | $ 1,326,258 |
Weighted average shares outstanding for basic income per share (in shares) | 307,854,518 | 319,827,769 | 309,716,456 | 325,705,500 |
Basic income per share attributable to CBRE Group, Inc. stockholders (in dollars per share) | $ 0.62 | $ 1.40 | $ 1.64 | $ 4.07 |
Diluted Income Per Share | ||||
Net income attributable to CBRE Group, Inc. stockholders | $ 190,553 | $ 446,639 | $ 508,849 | $ 1,326,258 |
Weighted average shares outstanding for basic income per share (in shares) | 307,854,518 | 319,827,769 | 309,716,456 | 325,705,500 |
Dilutive effect of contingently issuable shares (in shares) | 4,366,615 | 4,914,815 | 4,228,399 | 4,852,814 |
Weighted average shares outstanding for diluted income per share (in shares) | 312,221,133 | 324,742,584 | 313,944,855 | 330,558,314 |
Diluted income per share attributable to CBRE Group, Inc. stockholders (in dollars per share) | $ 0.61 | $ 1.38 | $ 1.62 | $ 4.01 |
Income Per Share and Stockhol_4
Income Per Share and Stockholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Nov. 19, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Aug. 18, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares repurchased during the period, value | $ 516,061,000 | $ 408,311,000 | $ 630,310,000 | $ 1,410,483,000 | ||
Capacity remaining under current stock repurchase programs | 1,500,000,000 | 1,500,000,000 | ||||
Class A common stock | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares repurchased during the period, value | 62,000 | 51,000 | 76,000 | 168,000 | ||
November 2021 Repurchase Program | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Authorized share repurchase amount | $ 2,000,000,000 | $ 4,000,000,000 | ||||
Authorized share repurchase term | 5 years | |||||
Additional authorized amount | $ 2,000,000,000 | |||||
Shares repurchased during the period, value | $ 515,900,000 | $ 408,300,000 | $ 630,200,000 | $ 1,400,000,000 | ||
Shares repurchased during the period (in shares) | 6,213,921 | 5,094,577 | 7,582,094 | 16,783,086 | ||
Average price per share (in dollars per share) | $ 83.03 | $ 83.11 | ||||
Contingently Issuable Shares | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Shares excluded in computation of diluted income per share (in shares) | 326,762 | 1,506,140 | 345,108 | 1,369,162 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | $ 7,729,834 | $ 7,378,494 | $ 22,631,803 | $ 22,151,396 |
Total Out of Scope of Topic 606 Revenue | 138,212 | 151,052 | 367,222 | 482,361 |
Total Revenue | 7,868,046 | 7,529,546 | 22,999,025 | 22,633,757 |
Corporate, other and eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | (3,849) | (5,732) | (11,700) | (12,751) |
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 | 0 |
Total Revenue | (3,849) | (5,732) | (11,700) | (12,751) |
Advisory Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 1,881,724 | 2,298,650 | 5,551,831 | 6,854,196 |
Total Out of Scope of Topic 606 Revenue | 131,109 | 135,151 | 356,544 | 416,036 |
Total Revenue | 2,012,833 | 2,433,801 | 5,908,375 | 7,270,232 |
Global Workplace Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 5,648,687 | 4,843,739 | 16,412,471 | 14,557,500 |
Total Out of Scope of Topic 606 Revenue | 0 | 0 | 0 | 0 |
Total Revenue | 5,648,687 | 4,843,739 | 16,412,471 | 14,557,500 |
Real Estate Investments | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 203,272 | 241,837 | 679,201 | 752,451 |
Total Out of Scope of Topic 606 Revenue | 7,103 | 15,901 | 10,678 | 66,325 |
Total Revenue | 210,375 | 257,738 | 689,879 | 818,776 |
Facilities management | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 3,843,347 | 3,671,930 | 11,210,057 | 11,292,738 |
Facilities management | Global Workplace Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 3,843,347 | 3,671,930 | 11,210,057 | 11,292,738 |
Project management | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 1,805,340 | 1,171,809 | 5,202,414 | 3,264,762 |
Project management | Global Workplace Solutions | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 1,805,340 | 1,171,809 | 5,202,414 | 3,264,762 |
Advisory leasing | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 827,498 | 989,615 | 2,350,103 | 2,732,045 |
Advisory leasing | Advisory Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 827,498 | 989,615 | 2,350,103 | 2,732,045 |
Advisory sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 369,819 | 600,527 | 1,134,971 | 1,936,073 |
Advisory sales | Advisory Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 369,819 | 600,527 | 1,134,971 | 1,936,073 |
Property management | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 461,109 | 452,560 | 1,397,657 | 1,362,405 |
Property management | Corporate, other and eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | (3,849) | (5,732) | (11,700) | (12,751) |
Property management | Advisory Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 464,958 | 458,292 | 1,409,357 | 1,375,156 |
Valuation | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 163,101 | 177,198 | 508,433 | 554,879 |
Valuation | Advisory Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 163,101 | 177,198 | 508,433 | 554,879 |
Commercial mortgage origination | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 36,903 | 59,149 | 93,861 | 214,333 |
Total Out of Scope of Topic 606 Revenue | 69,882 | 71,276 | 174,149 | 221,345 |
Commercial mortgage origination | Advisory Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 36,903 | 59,149 | 93,861 | 214,333 |
Total Out of Scope of Topic 606 Revenue | 69,882 | 71,276 | 174,149 | 221,345 |
Loan servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 19,445 | 13,869 | 55,106 | 41,710 |
Total Out of Scope of Topic 606 Revenue | 61,227 | 63,875 | 182,395 | 194,691 |
Loan servicing | Advisory Services | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 19,445 | 13,869 | 55,106 | 41,710 |
Total Out of Scope of Topic 606 Revenue | 61,227 | 63,875 | 182,395 | 194,691 |
Investment management | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 136,797 | 146,695 | 435,614 | 454,816 |
Investment management | Real Estate Investments | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 136,797 | 146,695 | 435,614 | 454,816 |
Development services | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 66,475 | 95,142 | 243,587 | 297,635 |
Total Out of Scope of Topic 606 Revenue | 7,103 | 15,901 | 10,678 | 66,325 |
Development services | Real Estate Investments | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Topic 606 Revenue | 66,475 | 95,142 | 243,587 | 297,635 |
Total Out of Scope of Topic 606 Revenue | $ 7,103 | $ 15,901 | $ 10,678 | $ 66,325 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 503,100 | $ 503,100 | $ 529,100 |
Contract assets, current | 407,652 | 407,652 | 391,626 |
Contract liabilities | 269,500 | 269,500 | 284,300 |
Contract liabilities, current | 263,093 | 263,093 | $ 276,334 |
Recognized revenue included in contract liability | $ (27,800) | $ (228,800) |
Segments - Additional Informati
Segments - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Global business segments | 3 |
Segments - Summarized Financial
Segments - Summarized Financial Information by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 7,868,046 | $ 7,529,546 | $ 22,999,025 | $ 22,633,757 |
Total reportable segment operating profit | 535,109 | 702,666 | 1,747,250 | 2,551,579 |
Operating Segments | Advisory Services | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,012,833 | 2,433,801 | 5,908,375 | 7,270,232 |
Total reportable segment operating profit | 277,225 | 423,802 | 862,400 | 1,410,113 |
Operating Segments | Global Workplace Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 5,648,687 | 4,843,739 | 16,412,471 | 14,557,500 |
Total reportable segment operating profit | 251,269 | 219,406 | 713,606 | 640,438 |
Operating Segments | Real Estate Investments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 210,375 | 257,738 | 689,879 | 818,776 |
Total reportable segment operating profit | 6,615 | 59,458 | 171,244 | 501,028 |
Corporate, other and eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (3,849) | (5,732) | (11,700) | (12,751) |
Total reportable segment operating profit | $ 111,084 | $ (85,192) | $ 319,631 | $ 303,049 |
Segments - Reconciliation of To
Segments - Reconciliation of Total Reportable Segment Operating Profit to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net income attributable to CBRE Group, Inc. | $ 190,553 | $ 446,639 | $ 508,849 | $ 1,326,258 |
Less: Net income attributable to non-controlling interests | 10,392 | 5,041 | 23,322 | 11,609 |
Net income | 200,945 | 451,680 | 532,171 | 1,337,867 |
Adjustments to increase (decrease) net income: | ||||
Depreciation and amortization | 149,161 | 142,136 | 465,038 | 453,527 |
Asset impairments | 0 | 0 | 0 | 36,756 |
Interest expense, net of interest income | 38,206 | 19,957 | 109,603 | 51,301 |
Write-off of financing costs on extinguished debt | 0 | 1,862 | 0 | 1,862 |
Provision for income taxes | 30,551 | 142,667 | 113,991 | 259,691 |
Carried interest incentive compensation (reversal) expense to align with the timing of associated revenue | (8,570) | (6,161) | (2,050) | 9,200 |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period | 0 | (1,300) | 0 | (4,447) |
Costs incurred related to legal entity restructuring | 3,650 | 893 | 3,649 | 12,814 |
Integration and other costs related to acquisitions | 5,858 | 7,716 | 60,436 | 24,046 |
Costs associated with efficiency and cost-reduction initiatives | 4,224 | 18,929 | 144,781 | 18,929 |
Provision associated with Telford’s fire safety remediation efforts | 0 | 9,479 | 0 | 46,984 |
Total reportable segment operating profit | 535,109 | 702,666 | 1,747,250 | 2,551,579 |
Corporate and other loss (income), including eliminations | ||||
Adjustments to increase (decrease) net income: | ||||
Total reportable segment operating profit | $ 111,084 | $ (85,192) | $ 319,631 | $ 303,049 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 7,868,046 | $ 7,529,546 | $ 22,999,025 | $ 22,633,757 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 4,274,409 | 4,320,235 | 12,630,108 | 12,887,747 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 1,100,462 | 970,307 | 3,151,875 | 3,002,798 |
All other countries | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 2,493,175 | $ 2,239,004 | $ 7,217,042 | $ 6,743,212 |
Telford Fire Safety Remediati_2
Telford Fire Safety Remediation (Details) - Telford Fire Safety Remediation - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Estimated environmental liability | $ 185,100,000 | $ 185,900,000 |
Additional provision recorded in the period | $ 0 |