CBRE Group (CBRE) Goldman Sachs 2024 U.S. Financial Services Conference summary

Business mix and growth strategy

• Operates nine global business lines, leading in six and focusing on both resilient and transactional segments.

• Resilient businesses now comprise 60% of revenue, expected to grow at double-digit rates, supported by capital investment.

• Transactional businesses generate strong cash flow and profits, supporting long-term growth.

• The mix shift toward resilient businesses increases confidence in future growth, less dependent on market cycles.

• Strategic investments and M&A expand addressable markets, especially in government, healthcare, and data centers.

Facilities management and project management

• Facilities management saw 22% year-over-year growth in Q3, with significant expansion in enterprise and local markets.

• Acquisitions like J&J and Norland have expanded reach into government, healthcare, and data centers.

• Local FM business has grown EBITDA from $40–50M to $250M, with rapid U.S. expansion underway.

• Turner & Townsend acquisition accelerated project management growth, now a $3B+ revenue, $500M EBITDA business.

• Integration of Turner & Townsend and legacy project management expected to drive mid-teens growth and several hundred basis points of margin improvement.

Data center and technology services

• Data center capabilities span development, management, and technical services, serving 700–800 centers globally.

• Acquisitions like Direct Line enhance ability to serve hyperscale clients and expand service offerings.

• Power constraints are a major challenge for data center growth, especially with rising AI demand.

• Strategic positioning in data centers is seen as a key right to win for future growth.