Overview
- CBRE fell as much as 15% Thursday, extending a two-day slide of roughly 26% that helped erase tens of billions in sector value and pushed declines into office REITs.
- CBRE reported $818 million in Q4 profit, up 15% year over year, with 2025 revenue at $40.6 billion, a 13% increase, and it projected 17% earnings growth in 2026.
- CEO Bob Sulentic said brokerage work remains anchored in relationships and proprietary data, positioning AI as a tool to enhance brokers rather than replace them.
- Management said AI-related demand is lifting results, with data centers and digital infrastructure contributing about 14% of CBRE’s 2025 core earnings, alongside stronger leasing and sales activity.
- Keefe, Bruyette & Woods and JPMorgan argued the retreat likely overstates immediate risks, even as reports from William Blair noted CoStar has already replaced about 500 roles through AI efficiencies.