CBRE's Q2 2025 Earnings Call: Dissecting Contradictions in Leasing Demand, Growth Expectations, and Market Recovery

Leasing demand and pipeline activity, industrial leasing expectations, office leasing recovery, capital markets recovery, and leasing business growth expectations are the key contradictions discussed in CBRE's latest 2025Q2 earnings call.



Strong Financial Performance Across Segments:
- CBRE Group reported strong double-digit revenue growth in both resilient and transactional businesses, with resilient revenues rising 17% and transactional revenues 15%.
- The growth was driven by increased activity across occupier and investor clients executing their plans amid market uncertainties.

Leasing Market Recovery:
- Global leasing revenue reached its highest level for any second quarter, led by a 15% increase in U.S. office leasing.
- This was propelled by a broad-based recovery in demand for office space, particularly in smaller markets outside gateway cities.

Property Sales and Capital Markets Activity:
- Global property sales rose 19%, with U.S. sales up 25%, and mortgage origination fees increased by over 40%.
- The strong performance was attributed to favorable conditions, including narrowing bid-ask spreads and significant sell-side interest.

Project Management Integration Success:
- The Turner & Townsend-CBRE integration in Project Management resulted in 13% revenue growth and 18% SOP growth.
- The integration is progressing well, with identified synergies and increased client wins expected to continue in the coming years.