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CBRE
Brandon Hovinga
Abstract
I have been interested in real estate for the last couple years now and have recently found
interest in a company called CBRE. This full-service real estate and investment company has
been a part of the Fortune 500 since 2008 and currently has over 75,000 employees. I would love
to become a part of this growing company as it continues to strive as a part of the Fortune 500.
My goal after college is to work for a credible real estate or investment company, and I believe
that CBRE is exactly what I am looking for. There are many different reasons why I think that
CBRE is perfect for me, starting with the fact that they are a part of the Fortune 500. When a
company achieves becoming a part of the Fortune 500, they are thought to be a very credible and
successful company, which is how I look at the company CBRE. The second reason that CBRE
is great for me is because their company values are some of the same things I value as a person.
These values include Respect, Service, Integrity, and Excellence which all lead towards
leadership which is why they are the leader in commercial real estate and investment as a
company. The third reason that CBRE is a great company for me is because they use the latest in
technology to perform all of their real estate and investment actions. This allows them to
successfully create client value and enable actionable strategies to further propel them forward as
a Fortune 500 company. Also, any company that can continue to improve as part of the Fortune
500 deserves to be given credit for its success. In conclusion, CBRE has developed into a very
credible and valued company over the last 5 years, being named one of Fortunes Most Admired
Companies. Throughout the last 16 years, CBRE has also been voted the industrys top brand by
the Lipsey Company. I believe that a company that has achieved so much success and that has
Table of Contents
i Abstract... 2
ii Introduction. 4
iii Background. 5
a History. 5
b Financials 6
i Figure 1... 6
c Employment 7
d Improvements. 8
iv Research 9
v References. 10
Introduction
CBRE is the worlds largest commercial real estate services and investment firm and will
continue to lead the way for real estate with its ability to adapt to consumers needs and wants.
The company offers promising careers to its employees, providing them with efficient work
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stations and access to the best software in the industry. Taking a look at CBREs stocks, financial
statements, and involvement within the industry will provide context to the companys projected
growth in the future. With multiple competitors in the commercial real estate and investing
market, such as Cushman & Wakefield, Jones Lang LaSalle, and FirstService Corporation,
CBRE must continue to develop new technology and adapt to consumers desires in order to
maintain its position at the forefront. Along with developing prestigious software, CBRE has
comprised a set of four core values that have contributed to the companys success. These four
values are Respect, Integrity, Service, and Excellence all focusing on providing a better
experience for their customers. The company doesnt forget to focus on the environment as well,
implementing energy efficient materials to help cut-back on global warming. Monitoring the
income statements provided, it is possible to get a look at the development of CBREs revenue
from the past few year. The stock of CBRE provides us with a sense of how the company is
doing and allows us to predict where the company is headed in the future. Keeping customers
happy is key to long lasting relationships, and at CBRE customer satisfaction is a high priority
and many steps are taken to ensure customers stay within the company. Looking into the
different aspects of the company and reports done, such as case studies, will also provide a sense
Background
History
CBRE has had a pretty eventful history, starting its journey as a company in San
Francisco, California in 1906. The company was first known as CB commercial and throughout
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the 1940s moved its way up to being one of the largest commercial real estate services
companies in the western part of the United States. As the 1960s and 70s came along, the
company decided to go public, expanding both its services offered and the area in which they
operated. In 1989 the company was officially named CB commercial, due to a group of
employees and other significant people acquiring the operations. Throughout the 1990s, the
company began to become more of a powerhouse in the industry and started acquiring other
leading firms in areas such as investment management, mortgage banking, and property and
corporate facilities management. A big milestone in the history of the company occurred in 1998
with the acquisition of REI Limited which was started by Richard Ellis in London around the
mid-1770s. This large acquisition resulted in the company changing its name to CB Richard Ellis
or CBRE, and sparked the companys involvement in countries outside the United States.
Acquiring Insignia Financial Group in 2003, CBRE became the leading real estate services firm
in both London and New York. The year of 2004 was a great year for CBRE, marking the
beginning of Class A Common Stock being traded on the New York Stock Exchange, later being
added to the S&P 500 in 2006. After acquiring a well-known outsourcing company, CBRE
became the global leader in outsourcing services and has consistently been ranked the #1
Professionals. In recent years, Forbes named CBRE Americas 15th best employer along with
Fortune declaring CBRE one of the most admired companies in the real estate industry for the
Financials
As for the year of 2015, CBRE became the first firm in their sector to exceed $10 billion
in total revenue and $1.4 billion in normalized earnings before interest taxes depreciation and
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amortization. Some other highlights from 2015 are, an increase in revenue by 20% to $10.9
billion, and adjusted earnings per share rising 22%. The purchase of Johnson Controls Global
Workplace Solutions (GWS) business, which was the companys largest acquisition in over a
decade, further strengthened CBREs Occupier Outsourcing business. The GWS acquisition
CBREs largest in nearly a decade helped to increase our global portfolio of managed
properties and facilities from 3.4 billion square feet to 5.2 billion square feet. CBRE now works
with more than 90 companies in the Fortune 100 (Sulentic, 2015, p. 4). While operating in over
60 countries, CBRE has established a foothold in the real estate market throughout the world and
continues to increase in size, acquiring more struggling companies every year. One company that
CBRE works closely with is Airbnb. Airbnb is a company that rents out things such as homes our
apartments and has begun to expand their market with CBRE closely monitoring their every
move to make sure it is the right one. Another company partnered with CBRE is Sprint. In a case
study done on sprint, Grosko (2014) says, With these foundations in place, Sprint now wanted
to move the CBRE relationship up the value chain, from one built on driving cost savings to one
focused on facilitating innovation, strategic growth and greater revenue for both partners (p. 1).
Employment
With over 70,000 employees, CBRE has one of the largest workforces of any commercial
real estate and investing company in the world. There is a reason behind the large number of
employees apart of CBREs staff. The reason behind this is because of the companys dedication
towards making sure their workers have a nice, efficient place to work. In the CBREs 2015
annual report, Sulentic (2015) says, We opened our 30th new state-of-the-art alternative
workplace office which we call Workplace360 providing our people with a collaborative and
innovative work environment (p. 2). Every year CBRE continues to generate plans to make
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their buildings more energy efficient in hopes of eventually coming up with a master plan that
Improvements
In todays day and age, energy efficiency is the big thing that companies want to have for
their products. When a product is energy efficient, it is able to operate at an optimum level and at
the same time use less resources during the process. At CBRE, plans are always evolving into
what consumers need and want in modern society, helping the company create long lasting
relationships with its customers. In the article, Value of Professional Property Managers in
Residential Project Development, Yuen (2016) says, Today, buildings are much larger and more
complex than in previous years and can require more maintenance. The protection of the
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environment and creating energy efficient buildings is becoming increasingly important. As the
years go by, energy efficiency continues to evolve to compliment the needs of humans in their
everyday lives (p. 56-57). Within the last decade, there has been a strong push for green
legislation to help eliminate the large effect buildings have on global warming and the
According to the USGBC, in the United States, buildings account for 70 percent of all electric
use and 40 percent of all carbon emissions. But truly green buildings, those receiving LEED
certification, can save 36 percent in energy, reduce carbon emissions by 40 percent, reduce water
use by 40 percent and reduce the production of solid waste by 70 percent (p. 34-39). In another
article titled, Green buildings and productivity, Miller (2009) says, Without a healthy and
The future of CBRE and its growth relies heavily upon consumers. Customer satisfaction
and established loyalty to the company with be a determining factor in CBREs continuing
success as the worlds leader in commercial real estate and investing services. A way to evaluate
customer satisfaction is to create a survey for current clients of CBRE, asking them a series of
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questions pertaining to their experience with the company. The customers can be split up into
different groups, depending on the type of service that CBRE provided them with. The groups
will be separated into three main categories, Investing services, Occupier services, and
Specialties services. Separating CBREs clients into three different categories will allow them to
pinpoint which areas they are struggling in so they can fix any problems and better that area of
service. The questions will involve rating the company in a variety of different areas based on
personal experiences, including customer service, energy efficiency of building, satisfaction with
service offered, customer benefits, and overall impression of the company as a whole. Customers
will also be asked to rate what they believe is most important for the service that they were
provided with, why they went with CBRE, what they believe CBRE can improve on, and if they
will continue to use the services that CBRE offers. Upon evaluating the answers to these
questions, CBRE will be able to determine what areas of service that they need to improve on
and whether or not their customers are satisfied with the overall quality of the company. A way to
eliminate skewed data is to prohibit and customer directly affiliated with CBRE from taking the
survey, in hopes that the results will provide an accurate description of customers views.
List of References
Eyring, A. R. (2015). Health and well-being at CBRE. People & Strategy, 38(1), 60-62.
Miller, N., Pogue, D., Gough, Q., & Davis, S. (2009). Green buildings and productivity. Journal
Rosenberg, J. (2008). Sustainability now in session: green legislation is on the rise, as discussed
Sulentic, R. (2016, January 1). Building advantage. In Building advantage. Retrieved April 3,
2017.
Yuen, C. B., & Li, T. (2016). Value of Professional Property Managers in Residential Project