CBRE starts 2025 on front foot but tariffs blur outlook
CBRE’s results have exceeded expectations so far this year, but the group stressed its outlook has become more doom and gloom amid tariff market turmoil.
The consultancy’s GAAP net income has grown 29.4% over the first three months of 2025 to $163m (£122.4m) compared to $126m for the same period last year, thanks to 12.3% revenue growth to $8.9bn.
The move has been driven by an 18% increase in global leasing activity, which was well above expectation and led by the US, where leasing revenues jumped 24%. In Europe, the Middle East and Africa leasing revenue was up 9% year-on-year in Q1 2025.
CBRE’s results have exceeded expectations so far this year, but the group stressed its outlook has become more doom and gloom amid tariff market turmoil.
The consultancy’s GAAP net income has grown 29.4% over the first three months of 2025 to $163m (£122.4m) compared to $126m for the same period last year, thanks to 12.3% revenue growth to $8.9bn.
The move has been driven by an 18% increase in global leasing activity, which was well above expectation and led by the US, where leasing revenues jumped 24%. In Europe, the Middle East and Africa leasing revenue was up 9% year-on-year in Q1 2025.
Global capital markets, meanwhile, performed in line with expectations during the quarter, with property sales revenue up 11% on the previous year. Again, the US set the pace hitting 26% growth, followed by 10% uplift across the EMEA markets.
Other advisory business lines, which include loan servicing and valuations, have recorded a 2% and 10% rise in revenues in Q1 2025.
Turning to building operations and experience segment, CBRE has reported 13.9% revenue growth to $5.4bn, enhanced by contributions from Industrious, which was acquired in early January this year. Meanwhile, revenue growth in its project management business was led by infrastructure projects in the UK and Middle East.
CBRE’s investment management arm has grown by $2.9bn since the end of 2024 to $149.1bn assets under management, thanks to net inflows, higher asset values and favourable foreign currency movement. The portfolio of in-process real estate development projects and pipeline stood at $31.1bn as at the end of Q1 2025.
Bob Sulentic, chair and chief executive officer at CBRE, said: “CBRE had a strong start to 2025 across our lines of business and around the world. Notably, as the first quarter ended, most of our businesses were performing better than expected and our new business pipelines were strong. Since then, driven by the uncertainty created by the tariff situation, our outlook has become less clear.
“Even in light of this, our current activity levels and new business pipelines continue to be strong, just somewhat less than they were. The current market uncertainty aside, we are encouraged by the prospects that our strategic positioning and resource set have created for sustained, resilient growth.”
