CBRE Poised for Revenue Rebound in 2024 as Rate Cuts Drive Transaction Recovery

CBRE Group (NYSE: CBRE), a global leader in commercial real estate services and investment solutions, is forecasted to achieve +10.3% revenue growth in 2024, according to Visible Alpha consensus estimates. This marks a rebound following a slowdown in 2023, where growth eased to +3.6% year-over-year, largely due to a decline in fee revenue across CBRE’s core businesses: advisory services and real estate investment management.

The company’s performance in 2023 was constrained as both its advisory and real estate investment segments grappled with a challenging macroeconomic backdrop of high interest rates and a sluggish recovery in the office sector. The tighter monetary policy made borrowing more expensive, reducing transaction volumes and slowing new investments. However, analysts believe CBRE stands to benefit from an expected recovery in transaction activity, spurred by the U.S. Federal Reserve’s recent interest rate cuts, with further reductions potentially on the horizon for the second half of 2024 and into 2025. This environment is anticipated to fuel a +9.4% year-over-year rise in revenue from CBRE’s more cyclical advisory services and a +4.8% increase in its real estate investment division in 2024.