Detailed narrative
Financial reporting recast and segment framework
Beginning this quarter, results reflect the financial reporting changes discussed on the Q4 2025 call and in the March 24 8-K, with prior periods recast accordingly. Management now frames the business as three services segments — Advisory, Building Operations & Experience (BOE), and Project Management — plus Real Estate Investments (REI).
It also distinguishes Resilient Businesses (facilities management, critical infrastructure services, property management, project management, loan servicing, valuations, other portfolio services, recurring investment management fees) from Transactional Businesses (property sales, leasing, mortgage origination, carried interest/incentive fees, development fees). All performance is cited against the outlook provided on the February Q4 2025 call.
Infrastructure as the central strategic thrust
Work related to infrastructure assets — data centers plus power, telecom and transportation — has become a source of significant profit and growth across all four segments. Infrastructure generated more than $3B of revenue in 2025 and nearly $950M in Q1, and management expects it to grow almost 50% this year.
Within BOE, a dedicated critical infrastructure services line (including Pearce-acquired telecom/power assets) reached $1.7B in 2025 and $580M in Q1, guided to >60% growth this year. Bob likened the move into critical infrastructure and data-center services to CBRE's 1990s/2000s outsourcing expansion, but 'much faster,' and cited strong M&A opportunity in the space.
The primary constraint is talent: 'we can't hire enough people' with the required skills.
Advisory: transactional recovery accelerates
Advisory revenue was led by continued leasing strength and accelerating sales. Leasing grew 18% globally and 21% in the U.S., with U.S. industrial leasing +24% (occupiers acting ahead of tightening big-box supply), U.S. office leasing +15% (broad-based across gateway and non-gateway markets), and data center leasing revenue more than tripling YoY.
Outside the U.S., leasing rose double digits in Asia Pacific (led by Japan) and mid-single digits in EMEA. Global property sales accelerated from Q4 to +39% (U.S. +64%, all major property types up double digits; Japan notably strong). Mortgage origination rose 53% on strong debt-fund and GSE volumes; the loan-servicing portfolio grew 5% to more than $460B.
Advisory SOP grew 35%.
Trammell Crow land program and the data-center land opportunity
REI SOP exceeded expectations on earlier-than-anticipated data-center land-sale profits. Management sees ~$900M of embedded gains still captured in Trammell Crow Company (all TCC profits, including land), to be monetized over coming years, and says it is 'filling that back up at the same rate' it is harvested.
An analyst referenced a roughly $30B Trammell Crow in-process and pipeline portfolio (not confirmed by management as a figure); Bob said the largest components are industrial, multifamily and data-center land, and highlighted TCC's core competency in acquiring, entitling and improving land.
The company controls dozens of potential data-center land sites with 'very little capital of our own,' working with hyperscalers to entitle, power and water them — a lumpy, hard-to-execute opportunity given approvals, power, water and public-opposition constraints.
AI: tailwind, product enabler, and efficiency lever
Management framed AI as a broad secular tailwind (driving the data-center/critical-infrastructure buildout), a product enhancer (AI-enabled tools being built across brokerage, building management and project management), and an internal efficiency lever. Efficiency gains are expected over several years in offshore service centers (call-center headcount potentially rationalized by up to ~25%), research, FP&A and HR.
Management views transactional businesses (brokerage, investing, development) as most protected, since the majority of brokerage spend goes to brokers for strategic/creative/negotiating value rather than data grinding. On disintermediation risk from proptech start-ups, Bob was skeptical: 'I would ask them to show you their revenue stream.' Average office lease length has not decreased, which management reads as evidence that AI-driven job-loss fears are overstated.
Capital allocation and buybacks
Capital-allocation priorities are unchanged, prioritizing M&A — with even greater opportunity seen now, especially in data centers — funded ahead of buybacks. CBRE repurchased nearly $540M of shares YTD ($530M in the quarter per the supplemental file) at an average price in the high $140s (~$148), reflecting management's view that the share price does not reflect the sustained long-term growth trajectory.
Management does not expect to make large standalone investments in AI companies, instead investing organically in technology/AI via capex. Trailing-12-month free cash flow was $1.7B (78% conversion), pressured by Q1 incentive-comp payouts, with full-year conversion expected near the high end of the 75%–85% range.