CBRE's Data Center Services Offset Softer Corporate Property Spending

CBRE's third-quarter results show a company becoming less dependent on traditional office transactions. Revenue rose 13% from a year earlier to $11.5 billion, while reported diluted earnings per share increased 26% to $1.52. Core earnings per share, which excludes specified adjustments, rose 28% to $2.05.

The fastest growth came from critical infrastructure services, where revenue increased 80% as hyperscalers invested in data centers and CBRE absorbed contributions from its Pierce acquisition. Facilities management revenue rose 13%, including more than 25% growth in the local business in the Americas. Those businesses provide a counterweight when leasing, property sales and conventional corporate projects slow.

That slowdown is already visible. U.S. office leasing revenue fell 2%, although a 16% increase in industrial leasing helped total U.S. leasing revenue rise 4%. Project management revenue grew only 3% as large corporate clients redirected spending away from traditional real estate toward data centers and other infrastructure. Management also said rate volatility and economic uncertainty were delaying some deals into 2027.

CBRE is reinforcing the faster-growing side of the portfolio with its planned purchase of Onnec Group. The company agreed to pay £460 million, about $610 million, in cash, plus an earnout of as much as £300 million, or roughly $400 million, if growth targets are met. CBRE expects Onnec to produce approximately $498 million of revenue and $67 million of core EBITDA in 2027 and to add to core earnings per share immediately after closing.

The acquisition expands CBRE's capabilities in network, fiber and data center infrastructure across Europe and Asia Pacific. Including Onnec, CBRE expects critical infrastructure services revenue to approach $4.5 billion in 2027. It projects nearly $7 billion of total infrastructure services revenue when related project management and advisory work is included. Those forecasts are company estimates, not contracted revenue guarantees, and the earnout means the ultimate purchase price depends on performance.

The quarter also supplied financial capacity for expansion. CBRE reported $443 million of net income attributable to shareholders and ended September with $5 billion of total liquidity. Trailing 12-month operating cash flow was $1.4 billion and free cash flow was $1.8 billion. These figures support the acquisition strategy, although investors should distinguish consolidated revenue growth from organic growth contributed by existing operations.

The investment case now turns on whether infrastructure growth can continue to outrun weakness in office-related activity. CBRE has demonstrated demand in facilities management, data centers and industrial leasing, but several risks remain: delayed corporate projects, softer U.S. data center construction, integration of Onnec and a potential earnout that could lift the deal cost above $1 billion. The next useful evidence will be Onnec's closing, its reported contribution and whether deferred leasing transactions actually appear in the fourth quarter.