CBRE Group CBRE · USD

20. SegmentsIn January 2025, we combined our project management business with our Turner & Townsend majority-owned subsidiary and created a fourth reportable segment, Project Management. In addition, on January 16, 2025, we acquired full ownership of Industrious, a provider of premium flexible workplace solutions and established a new business segment, BOE, comprised of enterprise and local facilities management, property management and digital infrastructure.In connection with the transactions described above, we reorganized our operations around and publicly report our financial results on four reportable segments – Advisory Services, BOE, Project Management and REI. We have recast prior period segment results to conform with the current presentation. In addition, we also have a “Corporate, other and eliminations” segment. Our Corporate segment primarily consists of corporate costs for leadership and certain other central functions. We track our strategic non-core equity investments in “other” which is considered an operating segment and reported together with Corporate as it does not meet the aggregation criteria for presentation as a separate reportable segment. These activities are not allocated to the other business segments. Corporate and other also includes eliminations related to inter-segment revenue. Segment operating profit (SOP) is the measure reported to Robert Sulentic, CBRE’s Chair and Chief Executive Officer (CEO), who is our chief operating decision maker (CODM) for purposes of assessing performance and allocating resources to each segment. The CODM uses SOP results compared to prior periods and previously forecasted amounts to assess performance and identify trends of ongoing operations within each segment. SOP excludes the impact of certain costs and charges that may obscure the underlying performance of our businesses and related trends, including restructuring charges and other costs incurred, which are outside the ordinary course of business. SOP represents earnings, inclusive of amounts attributable to non-controlling interests, before net interest expense, write-off of financing costs on extinguished debt, income taxes, depreciation and amortization, and asset impairments.

19. Revenue from Contracts with CustomersWe account for revenue with customers in accordance with FASB ASC Topic 606, “Revenue from Contracts with Customers” (Topic 606). Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those services.

14. Commitments and ContingenciesWe are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued as liabilities on our consolidated financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our consolidated financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated.In January 2008, CBRE MCI, a wholly-owned subsidiary of CBRE Capital Markets, entered into an agreement with Fannie Mae under Fannie Mae’s Delegated Underwriting and Servicing Lender Program (DUS Program) to provide financing for multifamily housing with five or more units. Under the DUS Program, CBRE MCI originates, underwrites, closes and services loans without prior approval by Fannie Mae, and typically, is subject to sharing up to one-third of any losses on loans originated under the DUS Program. CBRE MCI has funded loans with unpaid principal balances of $50.5 billion at December 31, 2025, of which $47.6 billion is subject to such loss sharing arrangements. CBRE MCI, under its agreement with Fannie Mae, must post cash reserves or other acceptable collateral under formulas established by Fannie Mae to provide for sufficient capital in the event losses occur. As of December 31, 2025 and 2024, CBRE MCI had $165 million and $160 million, respectively, of letters of credit under this reserve arrangement and had recorded a liability of approximately $79 million and $63 million as of December 31, 2025 and 2024, respectively, for its loan loss guarantee obligation under such arrangement. Fannie Mae’s recourse under the DUS Program is limited to the assets of CBRE MCI, which assets totaled approximately $1.7 billion (including $1.1 billion of warehouse receivables, which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at December 31, 2025.CBRE Capital Markets participates in Freddie Mac’s Multifamily Small Balance Loan (SBL) Program. Under the SBL Program, CBRE Capital Markets has certain repurchase and loss reimbursement obligations.

12. Long-Term Debt and Short-Term BorrowingsLong-term debt and short-term borrowings consist of the following (dollars in millions):December 31,20252024Long-Term DebtSenior term loans due 2028$1,325 $720 5.950% senior notes due 20341,000 1,000 4.900% senior notes due 2033750 — 4.875% senior notes due 2026— 600 4.800% senior notes due 2030600 — 5.500% senior notes due 2035500 — 5.500% senior notes due 2029500 500 2.500% senior notes due 2031500 500 Other6 — Total long-term debt5,181 3,320 Less: current maturities of long-term debt71 36 Less: unamortized discount47 30 Less: unamortized debt issuance costs13 9 Total long-term debt, net of current maturities$5,050 $3,245 Short-Term BorrowingsWarehouse lines of credit, with interest ranging from 4.99% to 5.88%, due 2026$1,609 $552 Commercial paper program, with interest ranging from 3.80% to 4.77%852 175 Revolving credit facilities, with interest of 7.50%— 132 Other4 47 Total short-term borrowings$2,465 $906 Future annual aggregate maturities of total consolidated gross debt (excluding unamortized discount, premium and debt issuance costs) at December 31, 2025 are as follows (dollars in millions):20262027202820292030ThereafterFuture maturities of total consolidated gross debt$2,536 $332 $928 $500 $600 $2,750 Long-Term DebtWe maintain credit facilities with third-party lenders, which we use for a variety of purposes. On July 10, 2023, CBRE Group, Inc. (CBRE Group), CBRE Services, Inc. (CBRE Services) and Relam Amsterdam Holdings B.V., a wholly owned subsidiary of CBRE Services (Relam Borrower), entered into a new 5-year senior unsecured Credit Agreement (2023 Credit Agreement) maturing on July 10, 2028, which refinanced and replaced a prior credit agreement. The 2023 Credit Agreement provides for a senior unsecured term loan credit facility comprised of (i) tranche A Euro-denominated term loans in an aggregate principal amount of €367 million (Tranche A (Euro) Loans) and (ii) tranche A U.S. Dollar-denominated term loans in an aggregate principal amount of $350 million (Tranche A (USD) Loans), both requiring quarterly principal payments beginning on December 31, 2024 and continuing through maturity on July 10, 2028. The proceeds of the term loans under the 2023 Credit Agreement were applied to the repayment of all remaining outstanding senior term loans under the prior 2022 Credit Agreement, the payment of related fees and expenses and other general corporate purposes.

16. Income TaxesProvision for Income TaxesThe components of income before provision for income taxes consisted of the following (dollars in millions):Year Ended December 31,202520242023Domestic$868 $326 $665 Foreign726 892 612Total$1,594 $1,218 $1,277 Our tax provision (benefit) consisted of the following (dollars in millions):Year Ended December 31,202520242023Current provision:Federal$185 $48 $98 State74 60 31 Foreign327 268 242 Total current provision586 376 371 Deferred provision:Federal(71)(57)(4)State(16)(33)4 Foreign(182)(104)(121)Total deferred provision(269)(194)(121)Total provision for income taxes$317 $182 $250 Effective Tax RateThe following is a reconciliation of the difference between the U.S. statutory federal income tax rate and our effective tax rate (dollars in millions):Year Ended December 31, 2025AmountPercentU.S. Federal statutory tax rate$335 21 %State and local income tax, net of federal (national) income tax effect (1)46 3 %Foreign tax effectsBermudaStatutory rate difference between Bermuda and United States(21)(1)%Tax Credits(53)(3)%Other foreign jurisdictions54 3 %Effect of cross-border tax lawsForeign Tax Credits(40)(3)%Tax credits(7)— %Nontaxable or nondeductible items20 1 %Changes in unrecognized tax benefits(8)(1)%Other adjustments(9)(1)%Effective Tax Rate$317 20 %________________________________________________________________________________________________________________________________________(1)State and local income taxes in California, New York and New York City made up the majority (greater than 50 percent) of the domestic state and local income taxes, net of federal (national) effect category.Year Ended December 31,20242023Federal statutory tax rate21 %21 %Foreign rate differential(1)(1)State taxes, net of federal benefit2 2 Nontaxable or nondeductible items1 3 Reserves for uncertain tax positions(4)— Tax credits(5)(5)Other1 (1)Effective tax rate15 %19 %Income Taxes PaidThe table below presents amounts of income taxes paid, net of refunds, by jurisdiction (dollars in millions):Year Ended December 31, 2025U.S. Federal$210 U.S. State and local66 Total U.S.

13. LeasesWe are the lessee in contracts for office space tenancies, leased vehicles, office space in our flexible workplace solutions business, Industrious, and leases of land in our development business. As it relates to service arrangements, we monitor these types of contracts to evaluate whether they meet the definition of a lease. Supplemental balance sheet information related to our leases is as follows (dollars in millions):December 31,CategoryClassification20252024AssetsOperating (1)Operating lease assets$2,062 $1,198 FinanceOther assets334 260 Total leased assets$2,396 $1,458 LiabilitiesCurrent:Operating (2)Operating lease liabilities$284 $200 FinanceOther current liabilities69 43 Non-current:Operating (2)Non-current operating lease liabilities2,121 1,307 FinanceOther liabilities167 122 Total lease liabilities$2,641 $1,672 ________________________________________________________________________________________________________________________________________(1)Operating lease assets as of December 31, 2025 includes operating lease assets acquired from Industrious.(2)Current and non-current operating lease liabilities as of December 31, 2025 include operating lease liabilities acquired from Industrious.Components of lease cost are as follows (dollars in millions):Year Ended December 31,ComponentClassification20252024Operating lease costCost of Revenue and Operating, administrative and other$319 $230 Finance lease cost:Amortization of right-to-use assets(1)53 41 Interest on lease liabilitiesInterest expense4 3 Variable lease cost(2)286 129 Sublease incomeRevenue(9)(8)Total lease cost$653 $395 ________________________________________________________________________________________________________________________________________(1)Amortization costs of $37 million and $27 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively. Amortization costs of $16 million and $14 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively.

4. AcquisitionsPearceOn November 4, 2025, we acquired 100% ownership interest in Pearce Services, LLC (Pearce), a leading provider of advanced technical services for digital and power infrastructure. Pearce forms part of our BOE segment. The Pearce acquisition was treated as a business combination under FASB Accounting Standards Codification (ASC) Topic 805, “Business Combinations,” and was accounted for using the acquisition method of accounting. We financed the acquisition with (i) cash on hand and (ii) borrowings under our existing commercial paper program, which were partially repaid with the net proceeds from the issuance of $750 million in aggregate principal amount of 4.900% senior notes in November 2025. See Note 12 – Long-Term Debt and Short-Term Borrowings for more information on the above-mentioned debt instruments.The following summarizes the consideration transferred at closing for the Pearce acquisition (dollars in millions):Cash consideration$763 Settlement of long-term debt280 Deferred and contingent consideration134 Other11 Total consideration$1,188 The purchase price includes a deferred consideration payment of $115 million, due on November 3, 2026. The transaction also includes contingent consideration related to a potential earnout payment of up to $115 million, which is subject to the achievement of certain performance thresholds through the calendar year 2027. In addition, certain Pearce performance-based stock compensation awards and certain transaction bonuses payable to certain executives participate in the deferred and contingent consideration payouts, provided the holders of such awards or bonuses remain employed with the Company up to the relevant payment date. The amounts of both the performance-based stock compensation awards and transaction bonuses vary based on a sliding scale according to the same thresholds as the contingent consideration. The fair values of the non-compensatory portion of the deferred consideration and contingent consideration were $103 million and $31 million, respectively, as of the acquisition date.

Risk Management and StrategyWe recognize the importance of developing, implementing and maintaining cybersecurity measures to safeguard our information systems and protect the confidentiality, integrity, and availability of data. We have integrated cybersecurity risk management into our broader risk management framework. Our risk management team works with management and our digital & technology organization to evaluate and address cybersecurity risks in alignment with our business objectives and operational needs. Our cybersecurity program is focused on the following areas:•Governance: We leverage multiple cybersecurity frameworks (e.g., ISO 27001 and NIST CSF) and regulatory requirements to form our Information Security Management System (ISMS), which is defined through policies and standards. Policies are applicable to all employees globally. These policies are reviewed periodically to ensure they remain relevant. For additional information regarding governance of our cybersecurity program, see the sections below entitled “Board Oversight of Cybersecurity Risks” and “Management’s Role in Assessing and Managing Cybersecurity Risks.”•Technical Safeguards: We deploy technical and procedural measures to protect our and our clients’ technology and data. Protection measures include, but are not limited to, network firewalls, network intrusion detection and prevention, penetration testing, attack surface management, vulnerability assessments and remediation processes, threat intelligence, anti-malware and access controls, plus data loss prevention and monitoring.•Security Awareness and Training: All employees are required to adhere to our Standards of Business Conduct, which identifies an employee’s responsibility for information security, confidentiality, and acceptable use of information and technology. We provide annual cybersecurity training for all employees, as well as enhanced role-specific information security training for certain employees. In addition to this training, security awareness articles are disseminated periodically throughout the year. We also sponsor a “Cybersecurity Awareness Month” in October each year and conduct regular phishing detection and response exercises.•Incident Response Plans: We maintain and update incident response plans that address the life cycle of a cybersecurity incident and routinely evaluate the effectiveness of such plans.