CBRE Q4 2023 Earnings Call and 2023 Annual Report Highlights

Highlights:

• In 2023, CBRE served nearly 90% of Fortune 100 companies, partnering with leading global institutional real estate investors.

• Challenges include rising borrowing costs, limited capital post-regional bank failures in March 2023, and economic uncertainty affecting commercial real estate investment.

• Real estate leasing markets experienced decreased office demand and increased space availability. In contrast, Class A buildings undergoing renovations to enhance their work environments for employees, focusing on boosting efficiency and engagement, are witnessing record rental rates. Multifamily markets are expected to self-correct with a shift towards renting due to high mortgage costs.

• Due to a strained lending environment, Advisory Services revenue declined by 14.0% in 2023.

• Property management and loan servicing sectors saw revenue growth, driven by new and expanded client relationships in the U.S.

• Formed a strategic partnership with Brookfield Properties to enhance tenant satisfaction and property performance across a 65 million square foot U.S. office portfolio.

• Global Workplace Solutions's revenue increased by 13.4% in 2023, fueled by new client acquisitions and service expansions.

• The Real Estate Investments segment faced a 14.2% revenue decline due to macroeconomic challenges affecting asset and fund monetization.

• The revenue stream was diverse, with 45.3% from foreign currency transactions in significant markets and 54.7% from the U.S.

• Emphasized infrastructure growth through Turner & Townsend and Trammell Crow Company, indicating expansion into infrastructure projects.