CBRE · 10-Q · 2026Q3 · Full report

Operating Expense Trends

CBRE GROUP, INC. · 2026-10-22 · Importance 47 · Surprise 22 · From source text

Consolidated operating, administrative and other expenses increased 20.2% to $4.560 billion for the nine months ended September 30, 2026, and rose to 13.7% of revenue from 13.2%. The increase primarily reflected a higher provision for Telford Homes fire-safety remediation and higher employee compensation associated with business growth. Advisory Services operating expenses increased 7.0% for the nine months, while BOE expenses increased 17.1% and Project Management expenses increased 11.3%, primarily due to higher employee compensation. Consolidated depreciation and amortization increased 28.7%, reflecting acquired intangible assets, including those from Pearce.

Key facts

• CBRE's operating, administrative and other expenses for the nine months ended September 30, 2026 were $4,560 million, compared with $3,794 million in the prior-year period. source
• CBRE's operating, administrative and other expenses for the three months ended September 30, 2026 were $1,564 million, compared with $1,327 million in the prior-year quarter. source
• Nine-month cost of revenue decreased 63.6%, due to lower construction management costs on real estate development projects. source
• CBRE third-quarter depreciation and amortization expense increased 26.9%, reflecting higher amortization on intangible assets from recent acquisitions, including Pearce. source
• CBRE depreciation and amortization expense increased 28.7% in the first nine months of 2026, reflecting acquired assets including Pearce. source
• CBRE third-quarter pass-through costs increased 11.4%, primarily due to growth in the BOE segment. source
• CBRE third-quarter operating, administrative and other expenses increased 17.9% due to higher employee compensation expense attributable to business growth. source
• CBRE pass-through costs increased 13.8% in the first nine months of 2026, primarily due to revenue growth in BOE and Project Management. source

Impact estimates