The commercial real estate industry has faced strong headwinds throughout the pandemic as employees work from home and businesses struggle with dwindling cash flows. However, with vaccinations commencing all over the world and economic activity picking up gradually, the medium to long-term may be more promising for companies like CBRE Group. CBRE Group, or Coldwell Banker Richard Ellis Group, is the largest commercial real estate investment and services company in the world. It offers services to property owners, property occupiers, and investors.
More About CBRE Group
CBRE Group is based out of Los Angeles, California. It has market-leading positions in areas like property sales and leasing. CBRE had more than 500 offices across the world with an employee strength of more than 100,000 as of 2019-end. CBRE does business in more than 100 countries and has a fairly diversified business presence across sectors and geographies. CBRE Group provides project management, facilities management, and transaction advisory services to property occupiers. The company provides sales, mortgage origination, investment management, leasing, and valuation services to investors. CBRE Group, in its annual report, has revealed that its business has been shifting towards contractual revenues as its customers prefer to opt for an account-based approach that covers the full spectrum of services that they require.
While a lot of the talk has been the expected decline in commercial real estate, there are some trends that are currently influencing the real estate industry in a big way. Firstly, interest rates are at historic lows. Therefore homebuilding and the residential segment are seeing strong demand. At the same time, due to the monetary policies of central banks around the world, yield-generating assets like commercial real estate are seeing investor demand. Two stocks to watch are CBRE and NVR. CBRE has grown from $28 around 5 years ago to $63 as of 15th January 2021. NVR’s stock has gone from $1500 to $4000 over a 5-year period.