Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 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, $0.01 par value per share | |
Trading Symbol | “CBRE” | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 310,832,322 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001138118 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Cash and cash equivalents | $ 1,231,325 | $ 1,318,290 |
Restricted cash | 88,464 | 86,559 |
Receivables, less allowance for doubtful accounts of $92,086 and $92,354 at March 31, 2023 and December 31, 2022, respectively | 5,468,926 | 5,326,807 |
Warehouse receivables | 792,294 | 455,354 |
Contract assets | 384,010 | 391,626 |
Prepaid expenses | 329,361 | 311,508 |
Income taxes receivable | 140,922 | 81,528 |
Other current assets | 611,098 | 557,009 |
Total Current Assets | 9,046,400 | 8,528,681 |
Property and equipment, net of accumulated depreciation and amortization of $1,458,857 and $1,386,261 at March 31, 2023 and December 31, 2022, respectively | 833,269 | 836,041 |
Goodwill | 4,933,818 | 4,868,382 |
Other intangible assets, net of accumulated amortization of $1,983,009 and $1,915,725 at March 31, 2023 and December 31, 2022, respectively | 2,152,939 | 2,192,706 |
Operating lease assets | 980,741 | 1,033,011 |
Investments in unconsolidated subsidiaries (with $950,985 and $973,635 at fair value at March 31, 2023 and December 31, 2022, respectively) | 1,295,088 | 1,317,705 |
Non-current contract assets | 138,690 | 137,480 |
Real estate under development | 180,290 | 172,253 |
Non-current income taxes receivable | 59,471 | 51,910 |
Deferred tax assets, net | 274,843 | 265,554 |
Other assets, net | 1,134,548 | 1,109,666 |
Total Assets | 21,030,097 | 20,513,389 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 3,008,485 | 3,078,781 |
Compensation and employee benefits payable | 1,410,582 | 1,459,001 |
Accrued bonus and profit sharing | 932,619 | 1,691,118 |
Operating lease liabilities | 232,369 | 229,591 |
Contract liabilities | 262,189 | 276,334 |
Income taxes payable | 192,754 | 184,453 |
Short-term borrowings: | ||
Warehouse lines of credit (which fund loans that U.S. Government Sponsored Enterprises have committed to purchase) | 782,637 | 447,840 |
Revolving credit facility | 1,209,000 | 178,000 |
Other short-term borrowings | 17,153 | 42,914 |
Total short-term borrowings | 2,008,790 | 668,754 |
Current maturities of long-term debt | 433,433 | 427,792 |
Other current liabilities | 236,241 | 226,170 |
Total Current Liabilities | 8,717,462 | 8,241,994 |
Long-term debt, net of current maturities | 1,086,268 | 1,085,712 |
Non-current operating lease liabilities | 1,052,823 | 1,080,385 |
Non-current income taxes payable | 54,761 | 54,761 |
Non-current tax liabilities | 154,943 | 148,806 |
Deferred tax liabilities, net | 276,681 | 282,073 |
Other liabilities | 1,044,749 | 1,013,926 |
Total Liabilities | 12,387,687 | 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; 310,786,159 and 311,014,160 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 3,108 | 3,110 |
Additional paid-in capital | 0 | 0 |
Accumulated earnings | 8,809,824 | 8,832,943 |
Accumulated other comprehensive loss | (953,098) | (982,780) |
Total CBRE Group, Inc. Stockholders’ Equity | 7,859,834 | 7,853,273 |
Non-controlling interests | 782,576 | 752,459 |
Total Equity | 8,642,410 | 8,605,732 |
Total Liabilities and Equity | $ 21,030,097 | $ 20,513,389 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets: | ||
Receivables, allowance for doubtful accounts | $ 92,086 | $ 92,354 |
Accumulated depreciation and amortization | 1,458,857 | 1,386,261 |
Other intangible assets, accumulated amortization | 1,983,009 | 1,915,725 |
Investments in unconsolidated subsidiaries, fair value | $ 950,985 | $ 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) | 310,786,159 | 311,014,160 |
Class A common stock, shares outstanding (in shares) | 310,786,159 | 311,014,160 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 7,411,114 | $ 7,332,933 |
Costs and expenses: | ||
Cost of revenue | 6,006,413 | 5,752,194 |
Operating, administrative and other | 1,208,904 | 1,065,996 |
Depreciation and amortization | 161,491 | 149,032 |
Asset impairments | 0 | 10,351 |
Total costs and expenses | 7,376,808 | 6,977,573 |
Gain on disposition of real estate | 3,059 | 21,592 |
Operating income | 37,365 | 376,952 |
Equity income from unconsolidated subsidiaries | 141,682 | 42,871 |
Other income (loss) | 2,475 | (14,464) |
Interest expense, net of interest income | 28,414 | 12,826 |
Income before provision for (benefit from) income taxes | 153,108 | 392,533 |
Provision for (benefit from) income taxes | 28,036 | (3,738) |
Net income | 125,072 | 396,271 |
Less: Net income attributable to non-controlling interests | 8,180 | 3,974 |
Net income attributable to CBRE Group, Inc. | $ 116,892 | $ 392,297 |
Basic income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in dollars per share) | $ 0.38 | $ 1.18 |
Weighted average shares outstanding for basic income per share (in shares) | 310,464,609 | 331,925,104 |
Diluted income per share: | ||
Net income per share attributable to CBRE Group, Inc. (in dollars per share) | $ 0.37 | $ 1.16 |
Weighted average shares outstanding for diluted income per share (in shares) | 315,358,147 | 337,140,325 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 125,072 | $ 396,271 |
Other comprehensive income (loss): | ||
Foreign currency translation gain (loss) | 37,734 | (81,285) |
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 110 | 108 |
Unrealized holding losses on available for sale debt securities, net of tax | (70) | (1,731) |
Other, net of tax | 5,558 | 100 |
Total other comprehensive income (loss) | 43,332 | (82,808) |
Comprehensive income | 168,404 | 313,463 |
Less: Comprehensive income (loss) attributable to non-controlling interests | 21,830 | (18,053) |
Comprehensive income attributable to CBRE Group, Inc. | $ 146,574 | $ 331,516 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 125,072 | $ 396,271 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 161,491 | 149,032 |
Amortization of financing costs | 1,161 | 1,663 |
Gains related to mortgage servicing rights, premiums on loan sales and sales of other assets | (23,481) | (28,422) |
Asset impairments | 0 | 10,351 |
Net realized and unrealized losses, primarily from investments | 319 | 16,690 |
Provision for doubtful accounts | 3,969 | 3,303 |
Net compensation expense for equity awards | 18,113 | 36,863 |
Equity income from unconsolidated subsidiaries | (141,682) | (42,871) |
Distribution of earnings from unconsolidated subsidiaries | 177,710 | 146,743 |
Proceeds from sale of mortgage loans | 2,166,609 | 3,336,084 |
Origination of mortgage loans | (2,494,589) | (3,221,312) |
Increase (decrease) in warehouse lines of credit | 334,797 | (105,326) |
Tenant concessions received | 528 | 2,114 |
Purchase of equity securities | (2,137) | (8,902) |
Proceeds from sale of equity securities | 2,120 | 20,750 |
Increase in real estate under development | (5,943) | (41,358) |
Increase in receivables, prepaid expenses and other assets (including contract and lease assets) | (73,437) | (156,061) |
Decrease in accounts payable and accrued expenses and other liabilities (including contract and lease liabilities) | (73,960) | (108,355) |
Decrease in compensation and employee benefits payable and accrued bonus and profit sharing | (843,509) | (725,216) |
(Increase) decrease in net income taxes receivable/payable | (56,713) | 17,722 |
Other operating activities, net | (21,195) | (93,270) |
Net cash used in operating activities | (744,757) | (393,507) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (60,284) | (42,056) |
Acquisition of businesses, including net assets acquired and goodwill, net of cash acquired | (44,653) | (16,792) |
Contributions to unconsolidated subsidiaries | (28,998) | (44,387) |
Distributions from unconsolidated subsidiaries | 14,794 | 12,101 |
Other investing activities, net | 4,074 | (4,487) |
Net cash used in investing activities | (115,067) | (95,621) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from revolving credit facility | 1,660,000 | 210,000 |
Repayment of revolving credit facility | (629,000) | 0 |
Proceeds from notes payable on real estate | 48 | 19,368 |
Repayment of notes payable on real estate | 0 | (13,954) |
Repurchase of common stock | (129,808) | (367,863) |
Acquisition of businesses (cash paid for acquisitions more than three months after purchase date) | (60,034) | (13,556) |
Units repurchased for payment of taxes on equity awards | (46,161) | (31,395) |
Non-controlling interest contributions | 567 | 210 |
Non-controlling interest distributions | (101) | (213) |
Other financing activities, net | (34,474) | (11,606) |
Net cash provided by (used in) financing activities | 761,037 | (209,009) |
Effect of currency exchange rate changes on cash and cash equivalents and restricted cash | 13,727 | (49,015) |
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (85,060) | (747,152) |
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 | 1,319,789 | 1,792,629 |
Cash paid during the period for: | ||
Interest | 39,379 | 12,826 |
Income tax payments, net | $ 82,059 | $ 88,649 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) | Mar. 31, 2023 | Mar. 18, 2021 |
2.500% Senior Notes | Senior Notes | ||
Interest rate | 2.50% | 2.50% |
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 | 396,271 | 392,297 | 3,974 | |||
Net compensation expense for equity awards | 36,863 | 36,863 | ||||
Units repurchased for payment of taxes on equity awards | (31,395) | (31,395) | ||||
Repurchase of common stock | (390,863) | (42) | (390,821) | |||
Foreign currency translation gain (loss) | (81,285) | (59,258) | (22,027) | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 108 | 108 | ||||
Unrealized holding losses on available for sale debt securities, net of tax | (1,731) | (1,731) | ||||
Contributions from non-controlling interests | 210 | 210 | ||||
Distributions to non-controlling interests | (213) | (213) | ||||
Other | (4,257) | 9 | (4,352) | 100 | (14) | |
Ending balance at Mar. 31, 2022 | 9,282,825 | 3,296 | 409,187 | 8,758,928 | (701,440) | 812,854 |
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 | 125,072 | 116,892 | 8,180 | |||
Net compensation expense for equity awards | 18,113 | 18,113 | ||||
Units repurchased for payment of taxes on equity awards | (46,161) | (12,566) | (33,595) | |||
Repurchase of common stock | (114,249) | (14) | 0 | (114,235) | ||
Foreign currency translation gain (loss) | 37,734 | 24,084 | 13,650 | |||
Amounts reclassified from accumulated other comprehensive loss to interest expense, net of tax | 110 | 110 | ||||
Unrealized holding losses on available for sale debt securities, net of tax | (70) | (70) | ||||
Contributions from non-controlling interests | 567 | 567 | ||||
Distributions to non-controlling interests | (101) | (101) | ||||
Other | 15,663 | 12 | (5,547) | 7,819 | 5,558 | 7,821 |
Ending balance at Mar. 31, 2023 | $ 8,642,410 | $ 3,108 | $ 0 | $ 8,809,824 | $ (953,098) | $ 782,576 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 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 Tightening Monetary Policy The macroeconomic environment remains challenging as central banks continue to rapidly raise interest rates. The rising rate environment, coupled with certain bank failures in the first quarter of 2023, has limited credit availability to all asset classes, including 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 of and proceeds generated from asset sales within our investment management and development businesses and our ability to obtain debt capital to begin new 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 | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, “ Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We adopted ASU 2021-08 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-01,“ Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. ” This ASU allows nonprepayable financial assets to be included in a closed portfolio hedged using the portfolio layer method. The expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-01 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-02, “ Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures. ” This ASU eliminates the accounting guidance for Troubled Debt Restructuring by creditors in 310-40 and enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-02 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In September 2022, the FASB issued ASU 2022-04, “ Supplier Finance Programs (Sub Topic 405-50): Disclosure of Supplier Finance Program Obligations. ” This ASU requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period including the key terms of the program and the following for obligations that the buyer has confirmed as valid to the provider: (1) the amount outstanding that remains unpaid by the buyer as of the end of the annual period, (2) a description of where those obligations are presented in the balance sheet, and (3) a rollforward of those obligations during the annual period, including the amount of obligations confirmed and the amount of obligations subsequently paid. Additionally, in each interim period, the buyer should disclose the amount of obligations outstanding that the buyer has confirmed as valid to the finance provider as of the end of the interim period. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We adopted ASU 2022-04 in the first quarter of 2023. The obligation outstanding under the applicable program was not material as of March 31, 2023. Recent Accounting Pronouncements Pending Adoption In June 2022, the FASB issued 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.” |
Warehouse Receivables & Warehou
Warehouse Receivables & Warehouse Lines of Credit | 3 Months Ended |
Mar. 31, 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 March 31, 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 2,494,589 Gains (premiums on loan sales) 6,807 Proceeds from sale of mortgage loans: Sale of mortgage loans (2,159,802) Cash collections of premiums on loan sales (6,807) Proceeds from sale of mortgage loans (2,166,609) Net increase in mortgage servicing rights included in warehouse receivables 2,153 Ending balance at March 31, 2023 $ 792,294 The following table is a summary of our warehouse lines of credit in place as of March 31, 2023 and December 31, 2022 (dollars in thousands): March 31, 2023 December 31, 2022 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 12/15/2023 daily floating rate SOFR rate plus 1.60%, with a SOFR adjustment rate of 0.05% $ 1,335,000 $ 580,133 $ 1,335,000 $ 330,509 JP Morgan (Business Lending Activity) (1) 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 15,393 650,000 — TD Bank, N.A. (TD Bank) (2) 7/15/2023 daily floating rate SOFR rate 1.30%, with a SOFR adjustment rate of 0.10% 800,000 22,701 800,000 — Bank of America, N.A. (BofA) (3) 5/24/2023 daily floating rate SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% 350,000 163,308 350,000 115,206 BofA (4) 5/24/2023 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) (5) 6/27/2023 daily floating rate SOFR plus 1.30% 200,000 1,102 200,000 2,125 $ 3,600,000 $ 782,637 $ 3,600,000 $ 447,840 _______________________________ (1) Effective October 18, 2021, this facility was renewed and amended and the maximum facility size was increased to $1,350.0 million. This facility was revised on October 17, 2022 with a revised interest rate to a Secured Overnight Finance Rate (SOFR) term plus 1.60%, with a SOFR adjustment rate of 0.05%, noting the Business Lending sublimit has a revised interest rate of daily adjusted term SOFR plus 2.75%, with a SOFR adjustment rate of 0.05%. Effective December 16, 2022, this facility was renewed with a revised maturity date of December 15, 2023. (2) Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit. Effective July 15, 2022, this facility was renewed 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. As of March 31, 2023, the uncommitted $400.0 million temporary line of credit was not utilized. (3) The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. Effective May 25, 2022, this facility was renewed with a revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 24, 2023. The sublimit is subject to an interest rate of daily floating rate SOFR plus 1.75%, with a SOFR adjustment rate of 0.10%. As of March 31, 2023, the sublimit borrowing has not been utilized. (4) Effective May 25, 2022, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10%, and a maturity date of May 24, 2023. (5) Effective June 27, 2022, this facility was renewed with a facility size of $200.0 million and a revised interest rate of daily floating rate SOFR plus 1.30% and a maturity date of June 27, 2023. During the three months ended March 31, 2023, we had a maximum of $938.6 million of warehouse lines of credit principal outstanding. |
Variable Interest Entities (VIE
Variable Interest Entities (VIEs) | 3 Months Ended |
Mar. 31, 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 March 31, 2023 and December 31, 2022, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, Investments in unconsolidated subsidiaries $ 165,015 $ 152,762 Co-investment commitments 70,387 83,835 Maximum exposure to loss $ 235,402 $ 236,597 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 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 . The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (dollars in thousands): As of March 31, 2023 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6,127 $ — $ — $ 6,127 Debt securities issued by U.S. federal agencies — 7,702 — 7,702 Corporate debt securities — 41,704 — 41,704 Asset-backed securities — 2,952 — 2,952 Total available for sale debt securities 6,127 52,358 — 58,485 Equity securities 33,512 — — 33,512 Investments in unconsolidated subsidiaries 134,567 — 456,556 591,123 Warehouse receivables — 792,294 — 792,294 Other assets — — 20,445 20,445 Total assets at fair value $ 174,206 $ 844,652 $ 477,001 $ 1,495,859 As of December 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: 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 March 31, 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 $100.7 million capital investment in VTS, a leading proptech company, made during the third quarter of 2022 as it is a non-marketable equity investment accounted for under the measurement alternative, defined as cost minus impairment. No adjustments or impairments were recorded during the three months ended March 31, 2023. It is 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 March 31, 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 March 31, 2023 and December 31, 2022, investments in unconsolidated subsidiaries at fair value using NAV were $359.9 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 December 31, 2022 $ 460,540 $ 14,452 Transfer out (230) — Net change in fair value (3,753) 3,400 Purchases/ Additions — 2,593 Balance as of March 31, 2023 $ 456,556 $ 20,445 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 March 31, 2023 : Valuation Technique Unobservable Input Range Weighted Average Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 23.5 % — Monte Carlo Volatility 45.0% - 70.0% 47.6 % Risk free interest rate 4.5 % Discount Yield 25.0 % — Other assets Discounted cash flow Discount rate 23.0 % — There were no asset impairment charges recorded during the three months ended March 31, 2023. During the three months ended March 31, 2022, we recorded $10.4 million in non-cash asset impairment charges (primarily comprised of receivables), on a pretax basis, related to the exit of our Advisory Services business in Russia. There were no other significant non-recurring fair value measurements recorded during the three months ended March 31, 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. Transfer out activities from level 3, as shown in the table above, represent annual conversion of a portion of our alignment shares in Altus to its common shares. • 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 designated as trading debt security that the company purchased in the fourth quarter of 2022 for which cost approximated fair value at March 31, 2023. • 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 facility. 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 was approximately $432.3 million and $424.6 million at March 31, 2023 and December 31, 2022, respectively. Their actual carrying value, net of unamortized debt issuance costs, totaled $433.4 million and $427.8 million at March 31, 2023 and December 31, 2022, respectively (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 4.875% senior notes was $591.8 million and $595.2 million at March 31, 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 $596.7 million and $596.4 million at March 31, 2023 and December 31, 2022, respectively. The estimated fair value of our 2.500% senior notes was $395.3 million and $396.8 million at March 31, 2023 and December 31, 2022. The actual carrying value of our 2.500% senior notes, net of unamortized debt issuance costs and discount, totaled $489.6 million and $489.3 million at March 31, 2023 and December 31, 2022 (See Note 7). • Notes Payable on Real Estate - As of March 31, 2023 and December 31, 2022, the carrying value of our notes payable on real estate, net of unamortized debt issuance costs, was $55.9 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 | 3 Months Ended |
Mar. 31, 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 March 31, 2023 December 31, 2022 Real estate investments (in projects and funds) $ 632,050 $ 622,826 Investment in Altus: Class A common stock (1) 134,567 160,093 Alignment shares (2) 44,809 59,530 Subtotal 179,376 219,624 Other (3) 483,662 475,256 Total investment in unconsolidated subsidiaries $ 1,295,088 $ 1,317,705 _______________ (1) CBRE held 24,556,012 and 24,554,201 shares of Altus Class A common stock as of March 31, 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 fiscal y 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 2023 2022 Revenue $ 4,098,173 $ 581,115 Operating income 3,627,503 273,693 Net income (1) 1,686,306 1,452,847 _______________ (1) Included in net 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 | 3 Months Ended |
Mar. 31, 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): March 31, December 31, Senior Euro term loan, with interest of 0.75% plus EURIBOR adj $ 433,433 $ 427,792 4.875% senior notes due in 2026, net of unamortized discount 598,493 598,374 2.500% senior notes due in 2031, net of unamortized discount 493,659 493,476 Total long-term debt 1,525,585 1,519,642 Less: current maturities of long-term debt 433,433 427,792 Less: unamortized debt issuance costs 5,884 6,138 Total long-term debt, net of current maturities $ 1,086,268 $ 1,085,712 We maintain credit facilities with third-party lenders, which we use for a variety of purposes. On July 9, 2021, CBRE Services, Inc. (CBRE Services) entered into an incremental assumption agreement with respect to its credit agreement, dated October 31, 2017 (such agreement, as amended by a December 20, 2018 incremental term loan assumption agreement, and such, a March 4, 2019 incremental assumption agreement and such, a July 9, 2021 incremental assumption agreement, collectively, the 2021 Credit Agreement) for purposes of increasing the revolving credit commitments previously available under the 2021 Credit Agreement by an aggregate principal amount of $350.0 million. On May 21, 2021, we entered into a definitive agreement whereby our subsidiary guarantors were released as guarantors from the 2021 Credit Agreement. On December 10, 2021, CBRE Services and certain of the other borrowers entered into a first amendment of the 2021 Credit Agreement which (i) changed the interest rate applicable to revolving borrowings denominated in Sterling from a LIBOR-based rate to a rate based on the Sterling Overnight Index Average (SONIA) and (ii) changed the interest rate applicable to revolving borrowings denominated in Euros from a LIBOR-based rate to a rate based on EURIBOR. The revised interest rates described above went into effect on January 1, 2022. On August 5, 2022, CBRE Group, Inc., as Holdings, and CBRE Global Acquisition Company, as the Luxembourg Borrower, entered into a second amendment to the 2021 Credit Agreement which, among other things (i) amended certain of the representations and warranties, affirmative covenants, negative covenants and events of default in the 2021 Credit Agreement in a manner consistent with the new 5-year senior unsecured Revolving Credit Agreement (as described below), (ii) terminated all revolving commitments previously available to the subsidiaries of the company thereunder and (iii) reflected the resignation of the previous administrative agent and the appointment of Wells Fargo Bank, National Association as the new administrative agent (the 2021 Credit Agreement, as amended by the first amendment and second amendment is referred to in this Quarterly Report as the 2022 Credit Agreement). The 2022 Credit Agreement is a senior unsecured credit facility that is guaranteed by CBRE Group, Inc. As of March 31, 2023, the 2022 Credit Agreement provided for a €400.0 million term loan facility 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). Borrowings under the euro term loan facility under the 2022 Credit Agreement bear interest at a minimum rate of 0.75% plus EURIBOR and revolving borrowings bear interest, based at our option, on either (1) the applicable fixed rate plus 0.68% to 1.075% or (2) the daily rate plus 0.0% to 0.075% in each case as determined by reference to our Credit Rating (as defined in the 2022 Credit Agreement). As of March 31, 2023, we had $433.4 million of euro term loan borrowings outstanding under the 2022 Credit Agreement (at an interest rate of 0.75% plus EURIBOR), net of unamortized debt issuance costs, included as current maturities of long-term debt in the accompanying consolidated balance sheets. 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 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 2022 Credit Agreement. Our 2022 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2022 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 2022 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 2022 Credit Agreement), 4.75x) as of the end of each fiscal quarter. 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 March 31, 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 March 31, 2023. On August 5, 2022, CBRE Services made an initial borrowing of $220.0 million under the Revolving Credit Agreement. These proceeds, in addition to cash on hand, were used to repay in full all revolving credit borrowings outstanding under the 2021 Credit Agreement and terminate the revolving commitments thereunder. As of March 31, 2023, $1.2 billion was outstanding under the Revolving Credit Agreement. No letters of credit were outstanding as of March 31, 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. Revolving Credit Facilities under the 2021 Credit Agreement The revolving credit facility under the 2021 Credit Agreement allowed for borrowings outside of the U.S., with a $200.0 million sub-facility available to CBRE Services, one of our Canadian subsidiaries, one of our Australian subsidiaries and one of our New Zealand subsidiaries and a $320.0 million sub-facility available to CBRE Services and one of our U.K. subsidiaries. Borrowings under the revolving credit facility bore interest at varying rates, based at our option, on either (1) the applicable fixed rate plus 0.68% to 1.075% or (2) the daily rate plus 0.0% to 0.075%, in each case as determined by reference to our Credit Rating (as defined in the 2021 Credit Agreement). The 2021 Credit Agreement required us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). As of January 1, 2022, pursuant to a first amendment to the 2021 Credit Agreement entered into on December 10, 2021, the applicable fixed rate for revolving borrowings denominated in Euros was changed to EURIBOR and the applicable fixed rate for revolving borrowings denominated in Sterling was changed to SONIA (with SONIA-based borrowings subject to a “credit spread adjustment” of an additional 0.0326% in addition to the interest rate spreads described above). On August 5, 2022, pursuant to a second amendment to the 2021 Credit Agreement, among other things, all revolving commitments previously available to the subsidiaries of the company under the 2021 Credit Agreement were terminated and replaced with a new $3.5 billion 5-year senior unsecured Revolving Credit Agreement (as described above). 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 March 31, 2023, $8.6 million (£7.0 million) was outstanding under this revolving credit facility bearing interest at SONIA plus 0.75%, all of which was repaid in April 2023. 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 | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We are the lessee in contracts for our office space tenancies and for leased vehicles. 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 March 31, December 31, Assets Operating Operating lease assets $ 980,741 $ 1,033,011 Financing Other assets, net 90,509 91,028 Total leased assets $ 1,071,250 $ 1,124,039 Liabilities Current: Operating Operating lease liabilities $ 232,369 $ 229,591 Financing Other current liabilities 33,984 33,039 Non-current: Operating Non-current operating lease liabilities 1,052,823 1,080,385 Financing Other liabilities 57,124 58,094 Total lease liabilities $ 1,376,300 $ 1,401,109 Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in thousands): Three Months Ended 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 39,998 $ 14,784 Right-of-use assets obtained in exchange for new financing lease liabilities 8,004 9,415 Other non-cash (decreases) increases in operating lease right-of-use assets (1) (52,701) 25,346 Other non-cash increases (decreases) in financing lease right-of-use assets (1) 151 (989) _______________________________ (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. 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 March 31, December 31, Assets Operating Operating lease assets $ 980,741 $ 1,033,011 Financing Other assets, net 90,509 91,028 Total leased assets $ 1,071,250 $ 1,124,039 Liabilities Current: Operating Operating lease liabilities $ 232,369 $ 229,591 Financing Other current liabilities 33,984 33,039 Non-current: Operating Non-current operating lease liabilities 1,052,823 1,080,385 Financing Other liabilities 57,124 58,094 Total lease liabilities $ 1,376,300 $ 1,401,109 Supplemental cash flow information and non-cash activity related to our operating and financing leases are as follows (dollars in thousands): Three Months Ended 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 39,998 $ 14,784 Right-of-use assets obtained in exchange for new financing lease liabilities 8,004 9,415 Other non-cash (decreases) increases in operating lease right-of-use assets (1) (52,701) 25,346 Other non-cash increases (decreases) in financing lease right-of-use assets (1) 151 (989) _______________________________ |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 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 therefore 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 $39.5 billion at March 31, 2023, of which $35.8 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 March 31, 2023 and December 31, 2022, CBRE MCI had $125.0 million and $113.0 million, respectively, of letters of credit under this reserve arrangement and had recorded a liability of approximately $66.2 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 $894.6 million (including $452.5 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 March 31, 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 March 31, 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 $215.2 million as of March 31, 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 $130.0 million as of March 31, 2023 referred to in the preceding paragraphs represented the majority of the $215.2 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 $388.9 million as of March 31, 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 $388.9 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 March 31, 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 March 31, 2023, we had aggregate future commitments of $93.1 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 committed capital of $135.3 million and $96.7 million to consolidated and unconsolidated projects, respectively, as of March 31, 2023. Also refer to Note 15 for the Telford Fire Safety Remediation provision. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our provision for income taxes on a consolidated basis was $28.0 million for the three months ended March 31, 2023 as compared to a benefit from income taxes of $3.7 million for the three months ended March 31, 2022. The increase of $31.8 million is primarily related to a one-time tax benefit in 2022 as a result of legal entity restructuring, offset by a decrease from corresponding change in earnings. Our effective tax rate increased to 18.3% for the three months ended March 31, 2023 from (1.0)% for the three months ended March 31, 2022. Our effective tax rate for the three months ended March 31, 2023 was different than the U.S. federal statutory tax rate of 21.0% primarily due to U.S. state taxes and favorable permanent book tax differences. As of March 31, 2023 and December 31, 2022, the company had gross unrecognized tax benefits of $399.7 million and $391.4 million, respectively. The increase of $8.3 million resulted from the accrual of gross unrecognized tax benefits. On August 16, 2022, the Inflation Reduction Act (IRA), a budget reconciliation package that contained legislation targeting energy security and climate change, healthcare and taxes, was signed into law. With respect to corporate-level taxes, the IRA included a 1% excise tax on stock buybacks and a 15% corporate alternative minimum tax (CAMT) based on financial statement income of certain U.S. companies that meet the $1 billion profitability threshold criteria, effective after December 31, 2022. The legislation did not have a material impact to our financial results. |
Income Per Share and Stockholde
Income Per Share and Stockholders' Equity | 3 Months Ended |
Mar. 31, 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 2023 2022 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 116,892 $ 392,297 Weighted average shares outstanding for basic income per share 310,464,609 331,925,104 Basic income per share attributable to CBRE Group, Inc. stockholders $ 0.38 $ 1.18 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 116,892 $ 392,297 Weighted average shares outstanding for basic income per share 310,464,609 331,925,104 Dilutive effect of contingently issuable shares 4,893,538 5,215,221 Weighted average shares outstanding for diluted income per share 315,358,147 337,140,325 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 0.37 $ 1.16 For the three months ended March 31, 2023 and 2022, 511,419 and 1,349,842, 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. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 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 March 31, 2023 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,680,162 $ — $ — $ 3,680,162 Project management — 1,657,560 — — 1,657,560 Advisory leasing 708,654 — — — 708,654 Advisory sales 367,404 — — — 367,404 Property management 463,774 — — (4,322) 459,452 Valuation 165,612 — — — 165,612 Commercial mortgage origination (1) 24,363 — — — 24,363 Loan servicing (2) 17,525 — — — 17,525 Investment management — — 147,490 — 147,490 Development services — — 74,257 — 74,257 Topic 606 Revenue 1,747,332 5,337,722 221,747 (4,322) 7,302,479 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 46,577 — — — 46,577 Loan servicing 59,959 — — — 59,959 Development services (3) — — 2,099 — 2,099 Total Out of Scope of Topic 606 Revenue 106,536 — 2,099 — 108,635 Total Revenue $ 1,853,868 $ 5,337,722 $ 223,846 $ (4,322) $ 7,411,114 Three Months Ended March 31, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,800,688 $ — $ — $ 3,800,688 Project management — 1,004,928 — — 1,004,928 Advisory leasing 772,722 — — — 772,722 Advisory sales 619,827 — — — 619,827 Property management 455,872 — — (4,888) 450,984 Valuation 181,142 — — — 181,142 Commercial mortgage origination (1) 73,890 — — — 73,890 Loan servicing (2) 14,008 — — — 14,008 Investment management — — 150,567 — 150,567 Development services — — 99,655 — 99,655 Topic 606 Revenue 2,117,461 4,805,616 250,222 (4,888) 7,168,411 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 70,980 — — — 70,980 Loan servicing 60,007 — — — 60,007 Development services (3) — — 33,535 — 33,535 Total Out of Scope of Topic 606 Revenue 130,987 — 33,535 — 164,522 Total Revenue $ 2,248,448 $ 4,805,616 $ 283,757 $ (4,888) $ 7,332,933 _______________________________ (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 $522.7 million ($384.0 million of which was current) and $529.1 million ($391.6 million of which was current) as of March 31, 2023 and December 31, 2022, respectively. We had contract liabilities totaling $268.8 million ($262.2 million of which was current) and $284.3 million ($276.3 million of which was current) as of March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023, we recognized revenue of $183.2 million that was included in the contract liability balance at December 31, 2022. |
Segments
Segments | 3 Months Ended |
Mar. 31, 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 but 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. 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 2023 2022 Revenue Advisory Services $ 1,853,868 $ 2,248,448 Global Workplace Solutions 5,337,722 4,805,616 Real Estate Investments 223,846 283,757 Corporate, other and eliminations (1) (4,322) (4,888) Total revenue $ 7,411,114 $ 7,332,933 Segment Operating Profit Advisory Services $ 269,722 $ 465,654 Global Workplace Solutions 229,666 202,736 Real Estate Investments 131,498 167,052 Total reportable segment operating profit $ 630,886 $ 835,442 _______________________________ (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 2023 2022 Net income attributable to CBRE Group, Inc. $ 116,892 $ 392,297 Net income attributable to non-controlling interests 8,180 3,974 Net income 125,072 396,271 Adjustments to increase (decrease) net income: Depreciation and amortization 161,491 149,032 Asset impairments — 10,351 Interest expense, net of interest income 28,414 12,826 Provision for (benefit from) income taxes 28,036 (3,738) Carried interest incentive compensation expense to align with the timing of associated revenue 6,978 22,856 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (1,696) Costs incurred related to legal entity restructuring — 1,676 Integration and other costs related to acquisitions 18,134 8,121 Costs associated with efficiency and cost-reduction initiatives 138,247 — Corporate and other loss, including eliminations 124,514 239,743 Total reportable segment operating profit $ 630,886 $ 835,442 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 2023 2022 Revenue United States $ 4,144,596 $ 4,131,397 United Kingdom 995,428 985,999 All other countries 2,271,090 2,215,537 Total revenue $ 7,411,114 $ 7,332,933 |
Efficiency and Cost-Reduction I
Efficiency and Cost-Reduction Initiatives | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Efficiency and Cost-Reduction Initiatives | Efficiency and Cost-Reduction Initiatives During the third quarter of 2022, we launched certain cost and operational efficiency initiatives that will further improve the company’s resiliency in an economic downturn while enabling continued operating platform investments that support future growth. The efficiency initiatives include management and workforce structure simplification, occupancy footprint rationalization and certain third-party spending reductions. As part of this, we incurred certain cash and non-cash charges. Non-cash charges are primarily associated with acceleration of depreciation and write-down of lease and related assets, partially offset by release of lease liability, as part of our lease termination activities. Cash-based charges are primarily related to employee separation, lease and certain contract exit costs, and professional fees. During the three months ended March 31, 2023, total charges (excluding depreciation) incurred were $138.2 million, related to employee separation, lease termination, and professional fees and other contract exit costs. Management continues to evaluate and modify these initiatives, which are likely to continue over the next few months. The following table presents the detail of expense incurred by segment (dollars in thousands): Three Months Ended March 31, 2023 Advisory Global Real Estate Corporate Consolidated Employee separation benefits $ 17,175 $ 28,894 $ 13,158 $ 2,538 $ 61,765 Lease exit costs 39,273 731 4,204 1,143 45,351 Professional fees and other 6,090 19,763 4,093 1,185 31,131 Subtotal 62,538 49,388 21,455 4,866 138,247 Depreciation expense 5,440 79 3,482 — 9,001 Total $ 67,978 $ 49,467 $ 24,937 $ 4,866 $ 147,248 The following table shows ending liability balance associated with major cash-based charges (dollars in thousands): Employee separation benefits Professional fees and other Balance at December 31, 2022 $ 37,014 $ 10,600 Expense incurred 61,765 31,131 Payments made (44,672) (37,392) Balance at March 31, 2023 $ 54,107 $ 4,339 |
Telford Fire Safety Remediation
Telford Fire Safety Remediation | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Telford Fire Safety Remediation | Efficiency and Cost-Reduction Initiatives During the third quarter of 2022, we launched certain cost and operational efficiency initiatives that will further improve the company’s resiliency in an economic downturn while enabling continued operating platform investments that support future growth. The efficiency initiatives include management and workforce structure simplification, occupancy footprint rationalization and certain third-party spending reductions. As part of this, we incurred certain cash and non-cash charges. Non-cash charges are primarily associated with acceleration of depreciation and write-down of lease and related assets, partially offset by release of lease liability, as part of our lease termination activities. Cash-based charges are primarily related to employee separation, lease and certain contract exit costs, and professional fees. During the three months ended March 31, 2023, total charges (excluding depreciation) incurred were $138.2 million, related to employee separation, lease termination, and professional fees and other contract exit costs. Management continues to evaluate and modify these initiatives, which are likely to continue over the next few months. The following table presents the detail of expense incurred by segment (dollars in thousands): Three Months Ended March 31, 2023 Advisory Global Real Estate Corporate Consolidated Employee separation benefits $ 17,175 $ 28,894 $ 13,158 $ 2,538 $ 61,765 Lease exit costs 39,273 731 4,204 1,143 45,351 Professional fees and other 6,090 19,763 4,093 1,185 31,131 Subtotal 62,538 49,388 21,455 4,866 138,247 Depreciation expense 5,440 79 3,482 — 9,001 Total $ 67,978 $ 49,467 $ 24,937 $ 4,866 $ 147,248 The following table shows ending liability balance associated with major cash-based charges (dollars in thousands): Employee separation benefits Professional fees and other Balance at December 31, 2022 $ 37,014 $ 10,600 Expense incurred 61,765 31,131 Payments made (44,672) (37,392) Balance at March 31, 2023 $ 54,107 $ 4,339 |
Environmental Loss Contingency Disclosure | 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 $188.1 million and $185.9 million as of March 31, 2023 and December 31, 2022, respectively, related to remediation efforts. The balance increased as of March 31, 2023 primarily due to the movement of foreign exchange rates, partially offset by $0.5 million of costs incurred for work performed during the quarter. We did not record any additional provision this quarter as the March 31, 2023 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. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 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 Tightening Monetary Policy The macroeconomic environment remains challenging as central banks continue to rapidly raise interest rates. The rising rate environment, coupled with certain bank failures in the first quarter of 2023, has limited credit availability to all asset classes, including 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 of and proceeds generated from asset sales within our investment management and development businesses and our ability to obtain debt capital to begin new 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 | Recently Adopted Accounting Pronouncements In October 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2021-08, “ Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ” This ASU requires that an acquirer entity in a business combination recognize and measure contract assets and liabilities acquired in a business combination at the acquisition date in accordance with Topic 606 as if the acquirer entity had originated the contracts. This ASU is effective for fiscal years beginning after December 15, 2022, and interim periods within those years. Early application of the amendments is permitted but should be applied to all acquisitions occurring in the annual period of adoption. The amendment should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We adopted ASU 2021-08 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-01,“ Derivatives and Hedging (Topic 815): Fair Value Hedging - Portfolio Layer Method. ” This ASU allows nonprepayable financial assets to be included in a closed portfolio hedged using the portfolio layer method. The expanded scope permits an entity to apply the same portfolio hedging method to both prepayable and nonprepayable financial assets, thereby allowing consistent accounting for similar hedges. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-01 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In March 2022, the FASB issued ASU 2022-02, “ Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructuring and Vintage Disclosures. ” This ASU eliminates the accounting guidance for Troubled Debt Restructuring by creditors in 310-40 and enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Additionally, this ASU requires entities to disclose current-period gross writeoffs by year of origination for financing receivables and net investments in leases within the scope of ASC 326-20. This guidance is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. We adopted ASU 2022-02 in the first quarter of 2023 and the adoption did not have a material impact on our consolidated financial statements and related disclosures. In September 2022, the FASB issued ASU 2022-04, “ Supplier Finance Programs (Sub Topic 405-50): Disclosure of Supplier Finance Program Obligations. ” This ASU requires a buyer in a supplier finance program to disclose qualitative and quantitative information about its supplier finance programs in each annual reporting period including the key terms of the program and the following for obligations that the buyer has confirmed as valid to the provider: (1) the amount outstanding that remains unpaid by the buyer as of the end of the annual period, (2) a description of where those obligations are presented in the balance sheet, and (3) a rollforward of those obligations during the annual period, including the amount of obligations confirmed and the amount of obligations subsequently paid. Additionally, in each interim period, the buyer should disclose the amount of obligations outstanding that the buyer has confirmed as valid to the finance provider as of the end of the interim period. This guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. We adopted ASU 2022-04 in the first quarter of 2023. The obligation outstanding under the applicable program was not material as of March 31, 2023. Recent Accounting Pronouncements Pending Adoption In June 2022, the FASB issued 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.” |
Warehouse Receivables & Wareh_2
Warehouse Receivables & Warehouse Lines of Credit (Tables) | 3 Months Ended |
Mar. 31, 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 2,494,589 Gains (premiums on loan sales) 6,807 Proceeds from sale of mortgage loans: Sale of mortgage loans (2,159,802) Cash collections of premiums on loan sales (6,807) Proceeds from sale of mortgage loans (2,166,609) Net increase in mortgage servicing rights included in warehouse receivables 2,153 Ending balance at March 31, 2023 $ 792,294 |
Schedule of Warehouse Lines of Credit in Place | The following table is a summary of our warehouse lines of credit in place as of March 31, 2023 and December 31, 2022 (dollars in thousands): March 31, 2023 December 31, 2022 Lender Current Pricing Maximum Carrying Maximum Carrying JP Morgan Chase Bank, N.A. (JP Morgan) (1) 12/15/2023 daily floating rate SOFR rate plus 1.60%, with a SOFR adjustment rate of 0.05% $ 1,335,000 $ 580,133 $ 1,335,000 $ 330,509 JP Morgan (Business Lending Activity) (1) 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 15,393 650,000 — TD Bank, N.A. (TD Bank) (2) 7/15/2023 daily floating rate SOFR rate 1.30%, with a SOFR adjustment rate of 0.10% 800,000 22,701 800,000 — Bank of America, N.A. (BofA) (3) 5/24/2023 daily floating rate SOFR rate plus 1.25%, with a SOFR adjustment rate of 0.10% 350,000 163,308 350,000 115,206 BofA (4) 5/24/2023 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) (5) 6/27/2023 daily floating rate SOFR plus 1.30% 200,000 1,102 200,000 2,125 $ 3,600,000 $ 782,637 $ 3,600,000 $ 447,840 _______________________________ (1) Effective October 18, 2021, this facility was renewed and amended and the maximum facility size was increased to $1,350.0 million. This facility was revised on October 17, 2022 with a revised interest rate to a Secured Overnight Finance Rate (SOFR) term plus 1.60%, with a SOFR adjustment rate of 0.05%, noting the Business Lending sublimit has a revised interest rate of daily adjusted term SOFR plus 2.75%, with a SOFR adjustment rate of 0.05%. Effective December 16, 2022, this facility was renewed with a revised maturity date of December 15, 2023. (2) Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit. Effective July 15, 2022, this facility was renewed 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. As of March 31, 2023, the uncommitted $400.0 million temporary line of credit was not utilized. (3) The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. Effective May 25, 2022, this facility was renewed with a revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10% and a maturity date of May 24, 2023. The sublimit is subject to an interest rate of daily floating rate SOFR plus 1.75%, with a SOFR adjustment rate of 0.10%. As of March 31, 2023, the sublimit borrowing has not been utilized. (4) Effective May 25, 2022, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating rate SOFR plus 1.25%, with a SOFR adjustment rate of 0.10%, and a maturity date of May 24, 2023. (5) Effective June 27, 2022, this facility was renewed with a facility size of $200.0 million and a revised interest rate of daily floating rate SOFR plus 1.30% and a maturity date of June 27, 2023. |
Variable Interest Entities (V_2
Variable Interest Entities (VIEs) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Maximum Exposure to Loss | As of March 31, 2023 and December 31, 2022, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands): March 31, December 31, Investments in unconsolidated subsidiaries $ 165,015 $ 152,762 Co-investment commitments 70,387 83,835 Maximum exposure to loss $ 235,402 $ 236,597 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2023 and December 31, 2022 (dollars in thousands): As of March 31, 2023 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: Debt securities: U.S. treasury securities $ 6,127 $ — $ — $ 6,127 Debt securities issued by U.S. federal agencies — 7,702 — 7,702 Corporate debt securities — 41,704 — 41,704 Asset-backed securities — 2,952 — 2,952 Total available for sale debt securities 6,127 52,358 — 58,485 Equity securities 33,512 — — 33,512 Investments in unconsolidated subsidiaries 134,567 — 456,556 591,123 Warehouse receivables — 792,294 — 792,294 Other assets — — 20,445 20,445 Total assets at fair value $ 174,206 $ 844,652 $ 477,001 $ 1,495,859 As of December 31, 2022 Fair Value Measured and Recorded Using Level 1 Level 2 Level 3 Total Assets Available for sale securities: 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 March 31, 2023 and December 31, 2022. |
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 December 31, 2022 $ 460,540 $ 14,452 Transfer out (230) — Net change in fair value (3,753) 3,400 Purchases/ Additions — 2,593 Balance as of March 31, 2023 $ 456,556 $ 20,445 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 December 31, 2022 $ 460,540 $ 14,452 Transfer out (230) — Net change in fair value (3,753) 3,400 Purchases/ Additions — 2,593 Balance as of March 31, 2023 $ 456,556 $ 20,445 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 March 31, 2023 : Valuation Technique Unobservable Input Range Weighted Average Investment in unconsolidated subsidiaries Discounted cash flow Discount rate 23.5 % — Monte Carlo Volatility 45.0% - 70.0% 47.6 % Risk free interest rate 4.5 % Discount Yield 25.0 % — Other assets Discounted cash flow Discount rate 23.0 % — |
Investments in Unconsolidated_2
Investments in Unconsolidated Subsidiaries (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2023 December 31, 2022 Real estate investments (in projects and funds) $ 632,050 $ 622,826 Investment in Altus: Class A common stock (1) 134,567 160,093 Alignment shares (2) 44,809 59,530 Subtotal 179,376 219,624 Other (3) 483,662 475,256 Total investment in unconsolidated subsidiaries $ 1,295,088 $ 1,317,705 _______________ (1) CBRE held 24,556,012 and 24,554,201 shares of Altus Class A common stock as of March 31, 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 fiscal y 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 2023 2022 Revenue $ 4,098,173 $ 581,115 Operating income 3,627,503 273,693 Net income (1) 1,686,306 1,452,847 _______________ (1) Included in net 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) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (dollars in thousands): March 31, December 31, Senior Euro term loan, with interest of 0.75% plus EURIBOR adj $ 433,433 $ 427,792 4.875% senior notes due in 2026, net of unamortized discount 598,493 598,374 2.500% senior notes due in 2031, net of unamortized discount 493,659 493,476 Total long-term debt 1,525,585 1,519,642 Less: current maturities of long-term debt 433,433 427,792 Less: unamortized debt issuance costs 5,884 6,138 Total long-term debt, net of current maturities $ 1,086,268 $ 1,085,712 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, December 31, Assets Operating Operating lease assets $ 980,741 $ 1,033,011 Financing Other assets, net 90,509 91,028 Total leased assets $ 1,071,250 $ 1,124,039 Liabilities Current: Operating Operating lease liabilities $ 232,369 $ 229,591 Financing Other current liabilities 33,984 33,039 Non-current: Operating Non-current operating lease liabilities 1,052,823 1,080,385 Financing Other liabilities 57,124 58,094 Total lease liabilities $ 1,376,300 $ 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): Three Months Ended 2023 2022 Right-of-use assets obtained in exchange for new operating lease liabilities $ 39,998 $ 14,784 Right-of-use assets obtained in exchange for new financing lease liabilities 8,004 9,415 Other non-cash (decreases) increases in operating lease right-of-use assets (1) (52,701) 25,346 Other non-cash increases (decreases) in financing lease right-of-use assets (1) 151 (989) _______________________________ |
Income Per Share and Stockhol_2
Income Per Share and Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 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 2023 2022 Basic Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 116,892 $ 392,297 Weighted average shares outstanding for basic income per share 310,464,609 331,925,104 Basic income per share attributable to CBRE Group, Inc. stockholders $ 0.38 $ 1.18 Diluted Income Per Share Net income attributable to CBRE Group, Inc. stockholders $ 116,892 $ 392,297 Weighted average shares outstanding for basic income per share 310,464,609 331,925,104 Dilutive effect of contingently issuable shares 4,893,538 5,215,221 Weighted average shares outstanding for diluted income per share 315,358,147 337,140,325 Diluted income per share attributable to CBRE Group, Inc. stockholders $ 0.37 $ 1.16 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 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 March 31, 2023 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,680,162 $ — $ — $ 3,680,162 Project management — 1,657,560 — — 1,657,560 Advisory leasing 708,654 — — — 708,654 Advisory sales 367,404 — — — 367,404 Property management 463,774 — — (4,322) 459,452 Valuation 165,612 — — — 165,612 Commercial mortgage origination (1) 24,363 — — — 24,363 Loan servicing (2) 17,525 — — — 17,525 Investment management — — 147,490 — 147,490 Development services — — 74,257 — 74,257 Topic 606 Revenue 1,747,332 5,337,722 221,747 (4,322) 7,302,479 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 46,577 — — — 46,577 Loan servicing 59,959 — — — 59,959 Development services (3) — — 2,099 — 2,099 Total Out of Scope of Topic 606 Revenue 106,536 — 2,099 — 108,635 Total Revenue $ 1,853,868 $ 5,337,722 $ 223,846 $ (4,322) $ 7,411,114 Three Months Ended March 31, 2022 Advisory Global Real Estate Corporate, other and eliminations Consolidated Topic 606 Revenue: Facilities management $ — $ 3,800,688 $ — $ — $ 3,800,688 Project management — 1,004,928 — — 1,004,928 Advisory leasing 772,722 — — — 772,722 Advisory sales 619,827 — — — 619,827 Property management 455,872 — — (4,888) 450,984 Valuation 181,142 — — — 181,142 Commercial mortgage origination (1) 73,890 — — — 73,890 Loan servicing (2) 14,008 — — — 14,008 Investment management — — 150,567 — 150,567 Development services — — 99,655 — 99,655 Topic 606 Revenue 2,117,461 4,805,616 250,222 (4,888) 7,168,411 Out of Scope of Topic 606 Revenue: Commercial mortgage origination 70,980 — — — 70,980 Loan servicing 60,007 — — — 60,007 Development services (3) — — 33,535 — 33,535 Total Out of Scope of Topic 606 Revenue 130,987 — 33,535 — 164,522 Total Revenue $ 2,248,448 $ 4,805,616 $ 283,757 $ (4,888) $ 7,332,933 _______________________________ (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) | 3 Months Ended |
Mar. 31, 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 2023 2022 Revenue Advisory Services $ 1,853,868 $ 2,248,448 Global Workplace Solutions 5,337,722 4,805,616 Real Estate Investments 223,846 283,757 Corporate, other and eliminations (1) (4,322) (4,888) Total revenue $ 7,411,114 $ 7,332,933 Segment Operating Profit Advisory Services $ 269,722 $ 465,654 Global Workplace Solutions 229,666 202,736 Real Estate Investments 131,498 167,052 Total reportable segment operating profit $ 630,886 $ 835,442 _______________________________ (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 2023 2022 Net income attributable to CBRE Group, Inc. $ 116,892 $ 392,297 Net income attributable to non-controlling interests 8,180 3,974 Net income 125,072 396,271 Adjustments to increase (decrease) net income: Depreciation and amortization 161,491 149,032 Asset impairments — 10,351 Interest expense, net of interest income 28,414 12,826 Provision for (benefit from) income taxes 28,036 (3,738) Carried interest incentive compensation expense to align with the timing of associated revenue 6,978 22,856 Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period — (1,696) Costs incurred related to legal entity restructuring — 1,676 Integration and other costs related to acquisitions 18,134 8,121 Costs associated with efficiency and cost-reduction initiatives 138,247 — Corporate and other loss, including eliminations 124,514 239,743 Total reportable segment operating profit $ 630,886 $ 835,442 |
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 2023 2022 Revenue United States $ 4,144,596 $ 4,131,397 United Kingdom 995,428 985,999 All other countries 2,271,090 2,215,537 Total revenue $ 7,411,114 $ 7,332,933 |
Efficiency and Cost-Reduction_2
Efficiency and Cost-Reduction Initiatives (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Expense Incurred By Segments | The following table presents the detail of expense incurred by segment (dollars in thousands): Three Months Ended March 31, 2023 Advisory Global Real Estate Corporate Consolidated Employee separation benefits $ 17,175 $ 28,894 $ 13,158 $ 2,538 $ 61,765 Lease exit costs 39,273 731 4,204 1,143 45,351 Professional fees and other 6,090 19,763 4,093 1,185 31,131 Subtotal 62,538 49,388 21,455 4,866 138,247 Depreciation expense 5,440 79 3,482 — 9,001 Total $ 67,978 $ 49,467 $ 24,937 $ 4,866 $ 147,248 |
Schedule of Liability Balance Associated with major Cash-based Charges | The following table shows ending liability balance associated with major cash-based charges (dollars in thousands): Employee separation benefits Professional fees and other Balance at December 31, 2022 $ 37,014 $ 10,600 Expense incurred 61,765 31,131 Payments made (44,672) (37,392) Balance at March 31, 2023 $ 54,107 $ 4,339 |
Warehouse Receivables & Wareh_3
Warehouse Receivables & Warehouse Lines of Credit - Narrative (Details) - Warehouse Agreement Borrowings $ in Millions | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Short-term Debt [Line Items] | |
Period of repayment for warehouse lines of credit | 1 month |
Lines of credit principal outstanding | $ 938.6 |
Warehouse Receivables & Wareh_4
Warehouse Receivables & Warehouse Lines of Credit - Warehouse Receivables Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Warehouse Receivables Activity [Roll Forward] | ||
Beginning balance | $ 455,354 | |
Origination of mortgage loans | 2,494,589 | $ 3,221,312 |
Gains (premiums on loan sales) | 6,807 | |
Proceeds from sale of mortgage loans: | ||
Sale of mortgage loans | (2,159,802) | |
Cash collections of premiums on loan sales | (6,807) | |
Proceeds from sale of mortgage loans | (2,166,609) | $ (3,336,084) |
Net increase in mortgage servicing rights included in warehouse receivables | 2,153 | |
Ending balance | $ 792,294 |
Warehouse Receivables & Wareh_5
Warehouse Receivables & Warehouse Lines of Credit - Summary of Warehouse Lines of Credit in Place (Details) - USD ($) | 3 Months Ended | |||||||
Oct. 17, 2022 | Jul. 15, 2022 | Jun. 27, 2022 | May 25, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Oct. 18, 2021 | Jul. 01, 2020 | |
Short-term Debt [Line Items] | ||||||||
Carrying Value | $ 782,637,000 | $ 447,840,000 | ||||||
Revolving credit facility | 1,209,000,000 | 178,000,000 | ||||||
Bank of America (BofA) | BofA, pricing | Secured Overnight Financing Rate (SOFR) Adjustment | ||||||||
Short-term Debt [Line Items] | ||||||||
Variable rate (as a percent) | 0.10% | |||||||
Warehouse Agreement Borrowings | ||||||||
Short-term Debt [Line Items] | ||||||||
Maximum Facility Size | 3,600,000,000 | 3,600,000,000 | ||||||
Carrying Value | 782,637,000 | 447,840,000 | ||||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | ||||||||
Short-term Debt [Line Items] | ||||||||
Variable rate (as a percent) | 1.60% | |||||||
Maximum Facility Size | 1,335,000,000 | 1,335,000,000 | $ 1,350,000,000 | |||||
Carrying Value | $ 580,133,000 | 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) | 0.05% | 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 Chase Bank, N.A. (JP Morgan), Pricing | Sublimit Borrowing Agreement | ||||||||
Short-term Debt [Line Items] | ||||||||
Variable rate (as a percent) | 2.75% | |||||||
Warehouse Agreement Borrowings | JP Morgan | JP Morgan Chase Bank, N.A. (JP Morgan), Pricing | Sublimit Borrowing Agreement | 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 | $ 15,393,000 | 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 | $ 800,000,000 | 800,000,000 | $ 400,000,000 | |||||
Carrying Value | 22,701,000 | 0 | ||||||
Revolving credit facility | $ 400,000,000 | |||||||
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 | 350,000,000 | |||||
Carrying Value | $ 163,308,000 | 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% | |||||||
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) | Bank of America, Pricing | Sublimit Borrowing Agreement | ||||||||
Short-term Debt [Line Items] | ||||||||
Maximum Facility Size | $ 100,000,000 | |||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | Sublimit Borrowing Agreement | Secured Overnight Financing Rate (SOFR) Adjustment | ||||||||
Short-term Debt [Line Items] | ||||||||
Variable rate (as a percent) | 0.10% | |||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | Bank of America, Pricing | Sublimit Borrowing Agreement | Secured Overnight Financing Rate (SOFR) | ||||||||
Short-term Debt [Line Items] | ||||||||
Variable rate (as a percent) | 1.75% | |||||||
Warehouse Agreement Borrowings | Bank of America (BofA) | BofA, pricing | ||||||||
Short-term Debt [Line Items] | ||||||||
Maximum Facility Size | $ 250,000,000 | $ 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% | 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% | |||||||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | ||||||||
Short-term Debt [Line Items] | ||||||||
Maximum Facility Size | $ 200,000,000 | |||||||
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 | $ 200,000,000 | 200,000,000 | ||||||
Carrying Value | $ 1,102,000 | $ 2,125,000 | ||||||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | MUFG Union Bank, N.A. (Union Bank), Pricing | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | ||||||||
Short-term Debt [Line Items] | ||||||||
Variable rate (as a percent) | 1.30% | |||||||
Warehouse Agreement Borrowings | MUFG Union Bank, N.A. (Union Bank) | MUFG Union Bank, N.A. (Union Bank), Pricing | Secured Overnight Financing Rate (SOFR) | ||||||||
Short-term Debt [Line Items] | ||||||||
Variable rate (as a percent) | 1.30% |
Variable Interest Entities (V_3
Variable Interest Entities (VIEs) (Details) - Variable Interest Entity, Not Primary Beneficiary - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Variable Interest Entity [Line Items] | ||
Investments in unconsolidated subsidiaries | $ 165,015 | $ 152,762 |
Co-investment commitments | 70,387 | 83,835 |
Maximum exposure to loss | $ 235,402 | $ 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Investments in unconsolidated subsidiaries | $ 950,985 | $ 973,635 |
Warehouse receivables | 792,294 | 455,354 |
Recurring | ||
Assets | ||
Available for sale debt securities | 58,485 | 61,705 |
Equity securities | 33,512 | 33,724 |
Investments in unconsolidated subsidiaries | 591,123 | 620,633 |
Warehouse receivables | 792,294 | 455,354 |
Other assets | 20,445 | 14,452 |
Total assets at fair value | 1,495,859 | 1,185,868 |
Liabilities at fair value | 0 | 0 |
Recurring | Level 1 | ||
Assets | ||
Available for sale debt securities | 6,127 | 6,164 |
Equity securities | 33,512 | 33,724 |
Investments in unconsolidated subsidiaries | 134,567 | 160,093 |
Warehouse receivables | 0 | 0 |
Other assets | 0 | 0 |
Total assets at fair value | 174,206 | 199,981 |
Recurring | Level 2 | ||
Assets | ||
Available for sale debt securities | 52,358 | 55,541 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 0 | 0 |
Warehouse receivables | 792,294 | 455,354 |
Other assets | 0 | 0 |
Total assets at fair value | 844,652 | 510,895 |
Recurring | Level 3 | ||
Assets | ||
Available for sale debt securities | 0 | 0 |
Equity securities | 0 | 0 |
Investments in unconsolidated subsidiaries | 456,556 | 460,540 |
Warehouse receivables | 0 | 0 |
Other assets | 20,445 | 14,452 |
Total assets at fair value | 477,001 | 474,992 |
Recurring | U.S. treasury securities | ||
Assets | ||
Available for sale debt securities | 6,127 | 6,164 |
Recurring | U.S. treasury securities | Level 1 | ||
Assets | ||
Available for sale debt securities | 6,127 | 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 | 7,702 | 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 | 7,702 | 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 | 41,704 | 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 | 41,704 | 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 | 2,952 | 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 | 2,952 | 3,201 |
Recurring | Asset-backed securities | Level 3 | ||
Assets | ||
Available for sale debt securities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Mar. 18, 2021 | Aug. 13, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment in VTS | $ (100,700) | ||||
Investments in unconsolidated subsidiaries at fair value using NAV | 359,900 | $ 353,000 | |||
Asset impairments | 0 | $ 10,351 | |||
Non-public entity designated as trading debt security | 10,000 | ||||
Notes payable on real estate | $ 55,900 | 52,700 | |||
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 | $ 432,300 | 424,600 | |||
Estimated Fair Value | 4.875% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | 591,800 | 595,200 | |||
Estimated Fair Value | 2.500% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | 395,300 | 396,800 | |||
Actual Carrying Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior term loans | 433,400 | 427,800 | |||
Actual Carrying Value | 4.875% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | 596,700 | 596,400 | |||
Actual Carrying Value | 2.500% Senior Notes | Senior Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Senior notes | $ 489,600 | $ 489,300 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Reconciliation for Assets and Liabilities Measured at Fair Value (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Other assets | |
Beginning balance | $ 14,452 |
Transfer out | 0 |
Net change in fair value | 3,400 |
Purchases / Additions | 2,593 |
Ending balance | 20,445 |
Investment in Unconsolidated Subsidiaries | |
Investment in Unconsolidated Subsidiaries | |
Beginning balance | 460,540 |
Transfer out | (230) |
Net change in fair value | (3,753) |
Purchases / Additions | 0 |
Ending balance | $ 456,556 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Inputs (Details) | Mar. 31, 2023 |
Discount rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.235 |
Weighted average, measurement input | 0% |
Other assets, measurement input | 0.230 |
Other assets, weighted average, measurement input | 0% |
Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Weighted average, measurement input | 47.60% |
Volatility | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.450 |
Volatility | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.700 |
Risk free interest rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Investment in unconsolidated subsidiaries, measurement input | 0.045 |
Weighted average, measurement input | |
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 | Mar. 31, 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 1,295,088 | $ 1,317,705 |
Real estate investments (in projects and funds) | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | 632,050 | 622,826 |
Altus Power, Inc. | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 179,376 | $ 219,624 |
Common stock shares (in shares) | 24,556,012 | 24,554,201 |
Altus Power, Inc. | Common Class A | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 134,567 | $ 160,093 |
Shares converted to Class A common stock (in shares) | 2,011 | |
Altus Power, Inc. | Common Class A | Parent Company | ||
Schedule of Equity Method Investments [Line Items] | ||
Shares converted to Class A common stock (in shares) | 1,811 | |
Altus Power, Inc. | Alignment Share or Class B Common Shares | ||
Schedule of Equity Method Investments [Line Items] | ||
Alignment shares converted (in shares) | 201,250 | |
Other | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 483,662 | 475,256 |
Alignment shares | Alignment Share or Class B Common Shares | ||
Schedule of Equity Method Investments [Line Items] | ||
Total investment in unconsolidated subsidiaries | $ 44,809 | $ 59,530 |
Investments in Unconsolidated_5
Investments in Unconsolidated Subsidiaries - Schedule of Condensed Financial Information of Equity Method Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Revenue | $ 7,411,114 | $ 7,332,933 |
Operating income | 37,365 | 376,952 |
Net income | 125,072 | 396,271 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees | ||
Schedule of Equity Method Investments [Line Items] | ||
Revenue | 4,098,173 | 581,115 |
Operating income | 3,627,503 | 273,693 |
Net income | $ 1,686,306 | $ 1,452,847 |
Long-Term Debt and Short-Term_3
Long-Term Debt and Short-Term Borrowings - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 18, 2021 | Aug. 13, 2015 |
Debt Instrument [Line Items] | ||||
Total long-term debt | $ 1,525,585 | $ 1,519,642 | ||
Less: current maturities of long-term debt | 433,433 | 427,792 | ||
Less: unamortized debt issuance costs | 5,884 | 6,138 | ||
Long-term debt, net of current maturities | $ 1,086,268 | 1,085,712 | ||
Senior Secured Term Loans | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 0.75% | |||
Total long-term debt | $ 433,433 | 427,792 | ||
4.875% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.875% | 4.875% | ||
Total long-term debt | $ 598,493 | 598,374 | ||
2.500% Senior Notes | Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 2.50% | 2.50% | ||
Total long-term debt | $ 493,659 | $ 493,476 |
Long-Term Debt and Short-Term_4
Long-Term Debt and Short-Term Borrowings - Long-Term Debt - Narrative (Details) | 3 Months Ended | ||||||
Aug. 05, 2022 USD ($) | Aug. 13, 2015 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Jul. 09, 2021 USD ($) | May 21, 2021 USD ($) | Mar. 18, 2021 USD ($) | |
2021 Credit Agreement | |||||||
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% | ||||||
2.500% Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | ||||||
Interest rate | 2.50% | 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% | 4.875% | ||||
Redemption price percentage | 99.24% | ||||||
Revolving credit facility | 2019 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 350,000,000 | ||||||
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 | 2021 Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement applicable fixed rate spread | 0.68% | ||||||
Credit agreement applicable daily rate spread | 0% | ||||||
Revolving credit facility | 2021 Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement applicable fixed rate spread | 1.075% | ||||||
Credit agreement applicable daily rate spread | 0.075% | ||||||
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% | ||||||
Euro term loan facility | 2021 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | € | € 400,000,000 | ||||||
Borrowings outstanding | $ 433,400,000 | ||||||
Euro term loan facility | 2021 Credit Agreement | Senior Notes | Minimum | Europe Interbank Offered Rate (EURIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Variable rate (as a percent) | 0.75% |
Long-Term Debt and Short-Term_5
Long-Term Debt and Short-Term Borrowings - Short Term Borrowings - Narrative (Details) - USD ($) $ in Thousands | Aug. 05, 2022 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | |||
Letters of credit outstanding amount | $ 215,200 | ||
Revolving credit facility | $ 1,209,000 | $ 178,000 | |
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% | ||
Revolving Credit Agreement | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Debt agreement term | 5 years | ||
Amounts available to borrow under credit agreement | $ 3,500,000 | ||
Interest rate | 1,000% | ||
Revolving Credit Agreement | Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding amount | $ 300,000 | ||
Revolving Credit Agreement | Revolving credit facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | |||
Debt Instrument [Line Items] | |||
Variable rate (as a percent) | 1% | ||
Revolving Credit Agreement | Revolving credit facility | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | |||
Debt Instrument [Line Items] | |||
Variable rate (as a percent) | 0.63% | ||
Revolving Credit Agreement | Revolving credit facility | Minimum | Base Rate | |||
Debt Instrument [Line Items] | |||
Variable rate (as a percent) | 0% | ||
Revolving Credit Agreement | Revolving credit facility | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap | |||
Debt Instrument [Line Items] | |||
Variable rate (as a percent) | 1.10% | ||
Revolving Credit Agreement | Revolving credit facility | Maximum | Base Rate | |||
Debt Instrument [Line Items] | |||
Variable rate (as a percent) | 0.10% | ||
2019 Credit Agreement | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Initial borrowing | $ 220,000 | ||
Revolving credit facility | 1,200,000 | ||
2019 Credit Agreement | Revolving credit facility | Line of Credit | |||
Debt Instrument [Line Items] | |||
Letters of credit outstanding amount | $ 0 |
Long-Term Debt and Short-Term_6
Long-Term Debt and Short-Term Borrowings - Revolving Credit Facility Narrative (Details) € in Millions | 3 Months Ended | ||||||
Aug. 05, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 EUR (€) | Jan. 01, 2022 | May 21, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||
Revolving credit facility | $ 1,209,000,000 | $ 178,000,000 | |||||
Revolving credit facility | 2021 Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Amounts available to borrow under credit agreement | $ 3,150,000,000 | ||||||
Credit spread adjustment rate | 0.0326% | ||||||
Debt agreement term | 5 years | ||||||
Revolving credit facility | 2021 Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement applicable fixed rate spread | 0.68% | ||||||
Credit agreement applicable daily rate spread | 0% | ||||||
Revolving credit facility | 2021 Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Credit agreement applicable fixed rate spread | 1.075% | ||||||
Credit agreement applicable daily rate spread | 0.075% | ||||||
Revolving credit facility | 2021 Credit Agreement | Canadian, Australian and New Zealand subsidiaries | |||||||
Debt Instrument [Line Items] | |||||||
Amounts available to borrow under credit agreement | $ 200,000,000 | ||||||
Revolving credit facility | 2021 Credit Agreement | U.K. subsidiaries | |||||||
Debt Instrument [Line Items] | |||||||
Amounts available to borrow under credit agreement | 320,000,000 | ||||||
Revolving credit facility | Revolving Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Amounts available to borrow under credit agreement | $ 3,500,000,000 | ||||||
Debt agreement term | 5 years | ||||||
Revolving credit facility | Revolving Credit Agreement | Fed Funds Effective Rate Overnight Index Swap Rate | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||||
Revolving credit facility | 2027 Credit Agreement | Turner & Townsend | |||||||
Debt Instrument [Line Items] | |||||||
Amounts available to borrow under credit agreement | € | € 120 | ||||||
Additional accordion option | € | € 20 | ||||||
Revolving credit facility | $ 8,600,000 | € 7 | |||||
Revolving credit facility | Revolving Credit Facility, Maturity Date November 11, 2022 | Turner & Townsend | SONIA | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Assets | ||
Operating | $ 980,741 | $ 1,033,011 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, net | Other assets, net |
Financing | $ 90,509 | $ 91,028 |
Total leased assets | 1,071,250 | 1,124,039 |
Current: | ||
Operating | $ 232,369 | $ 229,591 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Financing | $ 33,984 | $ 33,039 |
Non-current: | ||
Operating | $ 1,052,823 | $ 1,080,385 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Financing | $ 57,124 | $ 58,094 |
Total lease liabilities | $ 1,376,300 | $ 1,401,109 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information and Non-Cash Activity Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 39,998 | $ 14,784 |
Right-of-use assets obtained in exchange for new financing lease liabilities | 8,004 | 9,415 |
Other non-cash (decreases) increases in operating lease right-of-use assets | (52,701) | 25,346 |
Other non-cash increases (decreases) in financing lease right-of-use assets | $ 151 | $ (989) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | $ 39,500 | |
Letters of credit outstanding | 215.2 | |
Accrued loan loss | 66.2 | $ 65.1 |
Assets available for recourse | 894.6 | |
Guarantees total | 388.9 | |
Commitments to investment in future real estate investment | $ 93.1 | |
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 | $ 135.3 | |
Commitments to investment in unconsolidated real estate subsidiary | 96.7 | |
Warehouse Receivable | ||
Loss Contingencies [Line Items] | ||
Warehouse receivables | 452.5 | |
Funded loans subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Funded loans unpaid principal | 35,800 | |
Letters of credit outstanding | 125 | 113 |
SBL Program | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 5 | $ 5 |
Percentage of maximum original principal amount loan loss | 10% | |
Funded loans not subject to loss sharing arrangements | ||
Loss Contingencies [Line Items] | ||
Letters of credit outstanding | $ 130 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Contingency [Line Items] | |||
Provision for (benefit from) income taxes | $ 28,036 | $ (3,738) | |
Increase (decrease) in income taxes | $ 31,800 | ||
Effective tax rate | 18.30% | (1.00%) | |
Federal statutory tax rate | 21% | ||
Unrecognized tax benefits | $ 399,700 | $ 391,400 | |
Increase (decrease) in unrecognized tax benefits | $ 8,300 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic Income Per Share | ||
Net income attributable to CBRE Group, Inc. stockholders | $ 116,892 | $ 392,297 |
Weighted average shares outstanding for basic income per share (in shares) | 310,464,609 | 331,925,104 |
Basic income per share attributable to CBRE Group, Inc. stockholders (in dollars per share) | $ 0.38 | $ 1.18 |
Diluted Income Per Share | ||
Net income attributable to CBRE Group, Inc. stockholders | $ 116,892 | $ 392,297 |
Weighted average shares outstanding for basic income per share (in shares) | 310,464,609 | 331,925,104 |
Dilutive effect of contingently issuable shares (in shares) | 4,893,538 | 5,215,221 |
Weighted average shares outstanding for diluted income per share (in shares) | 315,358,147 | 337,140,325 |
Diluted income per share attributable to CBRE Group, Inc. stockholders (in dollars per share) | $ 0.37 | $ 1.16 |
Income Per Share and Stockhol_4
Income Per Share and Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | |||
Nov. 19, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | Aug. 18, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares repurchased during the period, value | $ 114,249,000 | $ 390,863,000 | ||
Capacity remaining under current stock repurchase programs | $ 2,000,000,000 | |||
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 (in shares) | 1,368,173 | 4,178,386 | ||
Average price per share (in dollars per share) | $ 83.48 | |||
Shares repurchased during the period, value | $ 114,200,000 | $ 390,800,000 | ||
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) | 511,419 | 1,349,842 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | $ 7,302,479 | $ 7,168,411 |
Total Out of Scope of Topic 606 Revenue | 108,635 | 164,522 |
Total Revenue | 7,411,114 | 7,332,933 |
Corporate, other and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | (4,322) | (4,888) |
Total Out of Scope of Topic 606 Revenue | 0 | 0 |
Total Revenue | (4,322) | (4,888) |
Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 1,747,332 | 2,117,461 |
Total Out of Scope of Topic 606 Revenue | 106,536 | 130,987 |
Total Revenue | 1,853,868 | 2,248,448 |
Global Workplace Solutions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 5,337,722 | 4,805,616 |
Total Out of Scope of Topic 606 Revenue | 0 | 0 |
Total Revenue | 5,337,722 | 4,805,616 |
Real Estate Investments | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 221,747 | 250,222 |
Total Out of Scope of Topic 606 Revenue | 2,099 | 33,535 |
Total Revenue | 223,846 | 283,757 |
Facilities management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 3,680,162 | 3,800,688 |
Facilities management | Global Workplace Solutions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 3,680,162 | 3,800,688 |
Project management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 1,657,560 | 1,004,928 |
Project management | Global Workplace Solutions | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 1,657,560 | 1,004,928 |
Advisory leasing | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 708,654 | 772,722 |
Advisory leasing | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 708,654 | 772,722 |
Advisory sales | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 367,404 | 619,827 |
Advisory sales | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 367,404 | 619,827 |
Property management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 459,452 | 450,984 |
Property management | Corporate, other and eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | (4,322) | (4,888) |
Property management | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 463,774 | 455,872 |
Valuation | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 165,612 | 181,142 |
Valuation | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 165,612 | 181,142 |
Commercial mortgage origination | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 24,363 | 73,890 |
Total Out of Scope of Topic 606 Revenue | 46,577 | 70,980 |
Commercial mortgage origination | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 24,363 | 73,890 |
Total Out of Scope of Topic 606 Revenue | 46,577 | 70,980 |
Loan servicing | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 17,525 | 14,008 |
Total Out of Scope of Topic 606 Revenue | 59,959 | 60,007 |
Loan servicing | Advisory Services | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 17,525 | 14,008 |
Total Out of Scope of Topic 606 Revenue | 59,959 | 60,007 |
Investment management | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 147,490 | 150,567 |
Investment management | Real Estate Investments | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 147,490 | 150,567 |
Development services | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 74,257 | 99,655 |
Total Out of Scope of Topic 606 Revenue | 2,099 | 33,535 |
Development services | Real Estate Investments | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Topic 606 Revenue | 74,257 | 99,655 |
Total Out of Scope of Topic 606 Revenue | $ 2,099 | $ 33,535 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 522,700 | $ 529,100 |
Contract assets, current | 384,010 | 391,626 |
Contract liabilities | 268,800 | 284,300 |
Contract liabilities, current | 262,189 | $ 276,334 |
Recognized revenue included in contract liability | $ (183,200) |
Segments - Additional Informati
Segments - Additional Information (Details) | 3 Months Ended |
Mar. 31, 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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 7,411,114 | $ 7,332,933 |
Total reportable segment operating profit | 630,886 | 835,442 |
Corporate, other and eliminations | ||
Segment Reporting Information [Line Items] | ||
Revenue | (4,322) | (4,888) |
Total reportable segment operating profit | 124,514 | 239,743 |
Advisory Services | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 1,853,868 | 2,248,448 |
Total reportable segment operating profit | 269,722 | 465,654 |
Global Workplace Solutions | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 5,337,722 | 4,805,616 |
Total reportable segment operating profit | 229,666 | 202,736 |
Real Estate Investments | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Revenue | 223,846 | 283,757 |
Total reportable segment operating profit | $ 131,498 | $ 167,052 |
Segments - Reconciliation of To
Segments - Reconciliation of Total Reportable Segment Operating Profit to Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net income attributable to CBRE Group, Inc. | $ 116,892 | $ 392,297 |
Less: Net income attributable to non-controlling interests | 8,180 | 3,974 |
Net income | 125,072 | 396,271 |
Adjustments to increase (decrease) net income: | ||
Depreciation and amortization | 161,491 | 149,032 |
Asset impairments | 0 | 10,351 |
Interest expense, net of interest income | 28,414 | 12,826 |
Provision for (benefit from) income taxes | 28,036 | (3,738) |
Carried interest incentive compensation expense to align with the timing of associated revenue | 6,978 | 22,856 |
Impact of fair value adjustments to real estate assets acquired in the Telford acquisition (purchase accounting) that were sold in period | 0 | (1,696) |
Costs incurred related to legal entity restructuring | 0 | 1,676 |
Integration and other costs related to acquisitions | 18,134 | 8,121 |
Costs associated with efficiency and cost-reduction initiatives | 138,247 | 0 |
Total reportable segment operating profit | 630,886 | 835,442 |
Corporate and other loss, including eliminations | ||
Adjustments to increase (decrease) net income: | ||
Total reportable segment operating profit | $ 124,514 | $ 239,743 |
Segments - Summary of Geographi
Segments - Summary of Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 7,411,114 | $ 7,332,933 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 4,144,596 | 4,131,397 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 995,428 | 985,999 |
All other countries | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 2,271,090 | $ 2,215,537 |
Efficiency and Cost-Reduction_3
Efficiency and Cost-Reduction Initiatives (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 138,200 |
Cost of revenues | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 17,900 |
Operating, administrative and other expenses | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 120,300 |
Efficiency and Cost-Reduction_4
Efficiency and Cost-Reduction Initiatives - Transformation and workforce optimization (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 138,200 |
Efficiency And Cost Reduction | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 147,248 |
Efficiency And Cost Reduction | Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 4,866 |
Efficiency And Cost Reduction | Advisory Services | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 67,978 |
Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 49,467 |
Efficiency And Cost Reduction | Real estate investments (in projects and funds) | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 24,937 |
Employee separation benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 61,765 |
Employee separation benefits | Efficiency And Cost Reduction | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 61,765 |
Employee separation benefits | Efficiency And Cost Reduction | Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 2,538 |
Employee separation benefits | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 17,175 |
Employee separation benefits | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 28,894 |
Employee separation benefits | Efficiency And Cost Reduction | Real estate investments (in projects and funds) | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 13,158 |
Lease termination costs | Efficiency And Cost Reduction | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 45,351 |
Lease termination costs | Efficiency And Cost Reduction | Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,143 |
Lease termination costs | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 39,273 |
Lease termination costs | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 731 |
Lease termination costs | Efficiency And Cost Reduction | Real estate investments (in projects and funds) | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 4,204 |
Professional fees and other | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 31,131 |
Professional fees and other | Efficiency And Cost Reduction | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 31,131 |
Professional fees and other | Efficiency And Cost Reduction | Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 1,185 |
Professional fees and other | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 6,090 |
Professional fees and other | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 19,763 |
Professional fees and other | Efficiency And Cost Reduction | Real estate investments (in projects and funds) | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 4,093 |
Subtotal | Efficiency And Cost Reduction | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 138,247 |
Subtotal | Efficiency And Cost Reduction | Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 4,866 |
Subtotal | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 62,538 |
Subtotal | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 49,388 |
Subtotal | Efficiency And Cost Reduction | Real estate investments (in projects and funds) | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 21,455 |
Depreciation expense | Efficiency And Cost Reduction | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 9,001 |
Depreciation expense | Efficiency And Cost Reduction | Corporate, Non-Segment | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 0 |
Depreciation expense | Efficiency And Cost Reduction | Advisory Services | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 5,440 |
Depreciation expense | Efficiency And Cost Reduction | Global Workplace Solutions | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | 79 |
Depreciation expense | Efficiency And Cost Reduction | Real estate investments (in projects and funds) | Operating Segments | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 3,482 |
Efficiency and Cost-Reduction_5
Efficiency and Cost-Reduction Initiatives - Liability Balance Associated with major Cash-based Charges (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring charges | $ 138,200 |
Employee separation benefits | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 37,014 |
Restructuring charges | 61,765 |
Payments made | (44,672) |
Restructuring Reserve, Ending Balance | 54,107 |
Professional fees and other | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Reserve, Beginning Balance | 10,600 |
Restructuring charges | 31,131 |
Payments made | (37,392) |
Restructuring Reserve, Ending Balance | $ 4,339 |
Telford Fire Safety Remediati_2
Telford Fire Safety Remediation (Details) - Telford Fire Safety Remediation - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||
Estimated environmental liability | $ 188.1 | $ 185.9 |
Costs incurred for work performed during the period | 0.5 | |
Additional provision recorded in the period | $ 0 |