false2021Q2000113811812-31http://fasb.org/us-gaap/2021-01-31#OtherAssetshttp://fasb.org/us-gaap/2021-01-31#OtherAssetshttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrent00011381182021-01-012021-06-30xbrli:shares00011381182021-07-23iso4217:USD00011381182021-06-3000011381182020-12-31iso4217:USDxbrli:shares00011381182021-04-012021-06-3000011381182020-04-012020-06-3000011381182020-01-012020-06-30xbrli:pure0001138118us-gaap:SeniorNotesMembercbre:TwoPointFivePercentSeniorNotesMember2020-12-310001138118us-gaap:SeniorNotesMembercbre:TwoPointFivePercentSeniorNotesMember2021-06-3000011381182019-12-3100011381182020-06-300001138118us-gaap:CommonStockMember2021-03-310001138118us-gaap:AdditionalPaidInCapitalMember2021-03-310001138118us-gaap:RetainedEarningsMember2021-03-310001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001138118us-gaap:NoncontrollingInterestMember2021-03-3100011381182021-03-310001138118us-gaap:RetainedEarningsMember2021-04-012021-06-300001138118us-gaap:NoncontrollingInterestMember2021-04-012021-06-300001138118us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001138118us-gaap:CommonStockMember2021-04-012021-06-300001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300001138118us-gaap:CommonStockMember2021-06-300001138118us-gaap:AdditionalPaidInCapitalMember2021-06-300001138118us-gaap:RetainedEarningsMember2021-06-300001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300001138118us-gaap:NoncontrollingInterestMember2021-06-300001138118us-gaap:CommonStockMember2020-03-310001138118us-gaap:AdditionalPaidInCapitalMember2020-03-310001138118us-gaap:RetainedEarningsMember2020-03-310001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001138118us-gaap:NoncontrollingInterestMember2020-03-3100011381182020-03-310001138118us-gaap:RetainedEarningsMember2020-04-012020-06-300001138118us-gaap:NoncontrollingInterestMember2020-04-012020-06-300001138118us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001138118us-gaap:CommonStockMember2020-04-012020-06-300001138118us-gaap:CommonStockMember2020-06-300001138118us-gaap:AdditionalPaidInCapitalMember2020-06-300001138118us-gaap:RetainedEarningsMember2020-06-300001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001138118us-gaap:NoncontrollingInterestMember2020-06-300001138118us-gaap:CommonStockMember2020-12-310001138118us-gaap:AdditionalPaidInCapitalMember2020-12-310001138118us-gaap:RetainedEarningsMember2020-12-310001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001138118us-gaap:NoncontrollingInterestMember2020-12-310001138118us-gaap:RetainedEarningsMember2021-01-012021-06-300001138118us-gaap:NoncontrollingInterestMember2021-01-012021-06-300001138118us-gaap:AdditionalPaidInCapitalMember2021-01-012021-06-300001138118us-gaap:CommonStockMember2021-01-012021-06-300001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-06-300001138118us-gaap:CommonStockMember2019-12-310001138118us-gaap:AdditionalPaidInCapitalMember2019-12-310001138118us-gaap:RetainedEarningsMember2019-12-310001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001138118us-gaap:NoncontrollingInterestMember2019-12-310001138118us-gaap:RetainedEarningsMember2020-01-012020-06-300001138118us-gaap:NoncontrollingInterestMember2020-01-012020-06-300001138118us-gaap:AdditionalPaidInCapitalMember2020-01-012020-06-300001138118us-gaap:CommonStockMember2020-01-012020-06-300001138118us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-06-300001138118us-gaap:WarehouseAgreementBorrowingsMember2021-01-012021-06-300001138118cbre:WarehouseLineOfCreditOneMembercbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMember2021-01-012021-06-300001138118cbre:WarehouseLineOfCreditOneMembercbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMember2021-06-300001138118cbre:WarehouseLineOfCreditOneMembercbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMember2020-12-310001138118cbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:WarehouseLineOfCreditTwoMember2021-01-012021-06-300001138118cbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:WarehouseLineOfCreditTwoMember2021-06-300001138118cbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:WarehouseLineOfCreditTwoMember2020-12-310001138118cbre:WarehouseLineOfCreditFourMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:FannieMaeASAPProgramMember2021-01-012021-06-300001138118cbre:WarehouseLineOfCreditFourMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:FannieMaeASAPProgramMember2021-06-300001138118cbre:WarehouseLineOfCreditFourMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:FannieMaeASAPProgramMember2020-12-310001138118cbre:WarehouseLineOfCreditFiveMembercbre:TDBankMemberus-gaap:WarehouseAgreementBorrowingsMember2021-01-012021-06-300001138118cbre:WarehouseLineOfCreditFiveMembercbre:TDBankMemberus-gaap:WarehouseAgreementBorrowingsMember2021-06-300001138118cbre:WarehouseLineOfCreditFiveMembercbre:TDBankMemberus-gaap:WarehouseAgreementBorrowingsMember2020-12-310001138118cbre:BankOfAmericaMembercbre:WarehouseLineOfCreditSixMemberus-gaap:WarehouseAgreementBorrowingsMember2021-01-012021-06-300001138118cbre:BankOfAmericaMembercbre:WarehouseLineOfCreditSixMemberus-gaap:WarehouseAgreementBorrowingsMember2021-06-300001138118cbre:BankOfAmericaMembercbre:WarehouseLineOfCreditSixMemberus-gaap:WarehouseAgreementBorrowingsMember2020-12-310001138118cbre:BankOfAmericaMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:WarehouseLineOfCreditSevenMember2021-01-012021-06-300001138118cbre:BankOfAmericaMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:WarehouseLineOfCreditSevenMember2021-06-300001138118cbre:BankOfAmericaMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:WarehouseLineOfCreditSevenMember2020-12-310001138118cbre:MUFGUnionBankNAMembercbre:WarehouseLineOfCreditNineMemberus-gaap:WarehouseAgreementBorrowingsMember2021-01-012021-06-300001138118cbre:MUFGUnionBankNAMembercbre:WarehouseLineOfCreditNineMemberus-gaap:WarehouseAgreementBorrowingsMember2021-06-300001138118cbre:MUFGUnionBankNAMembercbre:WarehouseLineOfCreditNineMemberus-gaap:WarehouseAgreementBorrowingsMember2020-12-310001138118us-gaap:WarehouseAgreementBorrowingsMember2021-06-300001138118us-gaap:WarehouseAgreementBorrowingsMember2020-12-310001138118cbre:WarehouseLineOfCreditOneMembercbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMember2020-10-190001138118cbre:WarehouseLineOfCreditOneMembercbre:JPMorganMemberus-gaap:WarehouseAgreementBorrowingsMember2021-01-180001138118cbre:WarehouseLineOfCreditFiveMembercbre:TDBankMemberus-gaap:WarehouseAgreementBorrowingsMember2020-07-010001138118cbre:BankOfAmericaMembercbre:WarehouseLineOfCreditSixMembercbre:SublimitBorrowingAgreementMemberus-gaap:WarehouseAgreementBorrowingsMember2021-06-300001138118cbre:MUFGUnionBankNAMembercbre:WarehouseLineOfCreditNineMemberus-gaap:WarehouseAgreementBorrowingsMember2019-06-28cbre:borrowing0001138118cbre:MUFGUnionBankNAMembercbre:WarehouseLineOfCreditNineMemberus-gaap:WarehouseAgreementBorrowingsMember2020-08-040001138118cbre:MUFGUnionBankNAMembercbre:WarehouseLineOfCreditNineMemberus-gaap:WarehouseAgreementBorrowingsMember2020-09-220001138118cbre:WarehouseLineOfCreditFourMemberus-gaap:WarehouseAgreementBorrowingsMembercbre:FannieMaeASAPProgramMember2021-01-150001138118us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-06-300001138118us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2021-06-300001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2021-06-300001138118us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-06-300001138118us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001138118us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-06-300001138118us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2021-06-300001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2021-06-300001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2021-06-300001138118us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-06-300001138118us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001138118us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-06-300001138118us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-06-300001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMember2021-06-300001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2020-12-310001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2020-12-310001138118us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001138118us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001138118us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001138118us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMember2020-12-310001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel1Member2020-12-310001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:FairValueInputsLevel3Member2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:AssetBackedSecuritiesMember2020-12-310001138118us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001138118us-gaap:FairValueInputsLevel2Memberus-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001138118us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001138118us-gaap:MortgageBackedSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2020-12-310001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2020-12-310001138118us-gaap:FairValueMeasurementsRecurringMember2020-12-310001138118us-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001138118us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel1Member2020-06-300001138118us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsNonrecurringMember2020-06-300001138118us-gaap:FairValueMeasurementsNonrecurringMemberus-gaap:FairValueInputsLevel3Member2020-06-300001138118us-gaap:FairValueMeasurementsNonrecurringMember2020-01-012020-06-300001138118cbre:GlobalWorkplaceSolutionsSegmentMember2020-01-012020-06-300001138118cbre:RealEstateInvestmentsSegmentMember2020-01-012020-06-300001138118us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300001138118us-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001138118us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300001138118us-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMember2021-06-300001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-12-310001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2020-12-310001138118us-gaap:SeniorNotesMembercbre:TwoPointFivePercentSeniorNotesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-06-300001138118us-gaap:SeniorNotesMembercbre:TwoPointFivePercentSeniorNotesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-06-300001138118us-gaap:SeniorNotesMembercbre:FivePointTwoFivePercentSeniorNotesMember2020-12-280001138118cbre:AdvisoryServicesSegmentMember2021-01-012021-06-300001138118cbre:GlobalWorkplaceSolutionsSegmentMember2021-01-012021-06-300001138118us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-04-012021-06-300001138118us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-04-012020-06-300001138118us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2021-01-012021-06-300001138118us-gaap:EquityMethodInvestmentNonconsolidatedInvesteeOrGroupOfInvesteesMember2020-01-012020-06-300001138118cbre:IndustriousNationalManagementCompanyLLCMember2021-04-012021-06-300001138118cbre:SeniorSecuredTermLoanMembersrt:MinimumMember2021-06-300001138118cbre:SeniorSecuredTermLoanMembersrt:MaximumMember2021-06-300001138118cbre:SeniorSecuredTermLoanMember2021-06-300001138118cbre:SeniorSecuredTermLoanMember2020-12-310001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMember2015-08-130001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMember2020-12-310001138118us-gaap:SeniorNotesMembercbre:TwoPointFivePercentSeniorNotesMember2021-03-180001138118cbre:OtherLongTermDebtMember2021-06-300001138118cbre:OtherLongTermDebtMember2020-12-310001138118cbre:TrancheATermLoanFacilityMembercbre:TwoThousandNineteenCreditAgreementMember2019-03-042019-03-040001138118us-gaap:RevolvingCreditFacilityMembercbre:TwoThousandNineteenCreditAgreementMember2021-06-30iso4217:EUR0001138118cbre:TrancheATermLoanFacilityMembercbre:TwoThousandNineteenCreditAgreementMember2021-06-300001138118cbre:TrancheATermLoanFacilityMembercbre:TwoThousandNineteenCreditAgreementMember2021-01-012021-06-300001138118cbre:EuroTermLoanFacilityMembercbre:TwoThousandNineteenCreditAgreementMember2021-06-300001138118us-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMembercbre:TwoThousandNineteenCreditAgreementMember2021-07-090001138118us-gaap:SeniorNotesMembercbre:FourPointEightSevenFiveSeniorNotesMember2015-08-132015-08-130001138118us-gaap:DebtInstrumentRedemptionPeriodOneMemberus-gaap:SeniorNotesMembercbre:TwoPointFivePercentSeniorNotesMember2021-03-182021-03-180001138118us-gaap:SeniorNotesMembercbre:TwoThousandNineteenCreditAgreementMember2021-01-012021-06-300001138118us-gaap:SeniorNotesMembercbre:TwoThousandNineteenCreditAgreementMember2021-06-300001138118cbre:CanadianAustralianAndNewZealandSubsidiariesMemberus-gaap:RevolvingCreditFacilityMembercbre:TwoThousandNineteenCreditAgreementMember2021-06-300001138118us-gaap:RevolvingCreditFacilityMembercbre:TwoThousandNineteenCreditAgreementMembercbre:UnitedKingdomSubsidiaryMember2021-06-300001138118us-gaap:SubsequentEventMemberus-gaap:RevolvingCreditFacilityMembercbre:TwoThousandNineteenCreditAgreementMembercbre:UnitedKingdomSubsidiaryMember2021-07-090001138118us-gaap:RevolvingCreditFacilityMembersrt:MinimumMembercbre:TwoThousandNineteenCreditAgreementMember2021-01-012021-06-300001138118us-gaap:RevolvingCreditFacilityMembersrt:MaximumMembercbre:TwoThousandNineteenCreditAgreementMember2021-01-012021-06-300001138118cbre:FundedLoanSubjectToLossSharingArrangementsMember2021-06-300001138118cbre:FundedLoanNotSubjectToLossSharingArrangementsMember2020-12-310001138118cbre:FundedLoanNotSubjectToLossSharingArrangementsMember2021-06-300001138118cbre:WarehouseReceivableMember2021-06-300001138118cbre:ForbearanceOfLoansCARESActMember2021-06-300001138118cbre:MultifamilySmallBalanceLoanProgramMember2021-06-300001138118cbre:MultifamilySmallBalanceLoanProgramMember2020-12-310001138118us-gaap:StockCompensationPlanMember2021-04-012021-06-300001138118us-gaap:StockCompensationPlanMember2021-01-012021-06-300001138118us-gaap:StockCompensationPlanMember2020-04-012020-06-300001138118us-gaap:StockCompensationPlanMember2020-01-012020-06-3000011381182019-02-2800011381182019-02-012019-02-2800011381182019-08-3100011381182019-11-3000011381182020-01-012020-12-3100011381182021-01-012021-03-310001138118us-gaap:OperatingSegmentsMembercbre:FacilitiesManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2021-04-012021-06-300001138118cbre:FacilitiesManagementMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryLeasingMembercbre:AdvisoryServicesSegmentMember2021-04-012021-06-300001138118cbre:AdvisoryLeasingMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:AdvisorySalesMember2021-04-012021-06-300001138118cbre:AdvisorySalesMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:PropertyManagementMember2021-04-012021-06-300001138118cbre:PropertyManagementMembercbre:CorporateAndReconcilingItemsMember2021-04-012021-06-300001138118cbre:PropertyManagementMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:ProjectManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2021-04-012021-06-300001138118cbre:ProjectManagementMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:ValuationMember2021-04-012021-06-300001138118cbre:ValuationMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:CommercialMortgageOriginationMembercbre:AdvisoryServicesSegmentMember2021-04-012021-06-300001138118cbre:CommercialMortgageOriginationMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:LoanServicingMember2021-04-012021-06-300001138118cbre:LoanServicingMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMembercbre:RealEstateInvestmentsSegmentMember2021-04-012021-06-300001138118cbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateDevelopmentServicesMembercbre:RealEstateInvestmentsSegmentMember2021-04-012021-06-300001138118cbre:RealEstateDevelopmentServicesMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:GlobalWorkplaceSolutionsSegmentMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateInvestmentsSegmentMember2021-04-012021-06-300001138118cbre:CorporateAndReconcilingItemsMember2021-04-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:FacilitiesManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2020-04-012020-06-300001138118cbre:FacilitiesManagementMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryLeasingMembercbre:AdvisoryServicesSegmentMember2020-04-012020-06-300001138118cbre:AdvisoryLeasingMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:AdvisorySalesMember2020-04-012020-06-300001138118cbre:AdvisorySalesMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:PropertyManagementMember2020-04-012020-06-300001138118cbre:PropertyManagementMembercbre:CorporateAndReconcilingItemsMember2020-04-012020-06-300001138118cbre:PropertyManagementMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:ProjectManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2020-04-012020-06-300001138118cbre:ProjectManagementMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:ValuationMember2020-04-012020-06-300001138118cbre:ValuationMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:CommercialMortgageOriginationMembercbre:AdvisoryServicesSegmentMember2020-04-012020-06-300001138118cbre:CommercialMortgageOriginationMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:LoanServicingMember2020-04-012020-06-300001138118cbre:LoanServicingMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMembercbre:RealEstateInvestmentsSegmentMember2020-04-012020-06-300001138118cbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateDevelopmentServicesMembercbre:RealEstateInvestmentsSegmentMember2020-04-012020-06-300001138118cbre:RealEstateDevelopmentServicesMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:GlobalWorkplaceSolutionsSegmentMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateInvestmentsSegmentMember2020-04-012020-06-300001138118cbre:CorporateAndReconcilingItemsMember2020-04-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:FacilitiesManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2021-01-012021-06-300001138118cbre:FacilitiesManagementMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryLeasingMembercbre:AdvisoryServicesSegmentMember2021-01-012021-06-300001138118cbre:AdvisoryLeasingMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:AdvisorySalesMember2021-01-012021-06-300001138118cbre:AdvisorySalesMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:PropertyManagementMember2021-01-012021-06-300001138118cbre:PropertyManagementMembercbre:CorporateAndReconcilingItemsMember2021-01-012021-06-300001138118cbre:PropertyManagementMember2021-01-012021-06-300001138118cbre:ProjectManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2021-01-012021-06-300001138118cbre:ProjectManagementMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:ValuationMember2021-01-012021-06-300001138118cbre:ValuationMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:CommercialMortgageOriginationMembercbre:AdvisoryServicesSegmentMember2021-01-012021-06-300001138118cbre:CommercialMortgageOriginationMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:LoanServicingMember2021-01-012021-06-300001138118cbre:LoanServicingMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMembercbre:RealEstateInvestmentsSegmentMember2021-01-012021-06-300001138118cbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateDevelopmentServicesMembercbre:RealEstateInvestmentsSegmentMember2021-01-012021-06-300001138118cbre:RealEstateDevelopmentServicesMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:GlobalWorkplaceSolutionsSegmentMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateInvestmentsSegmentMember2021-01-012021-06-300001138118cbre:CorporateAndReconcilingItemsMember2021-01-012021-06-300001138118us-gaap:OperatingSegmentsMembercbre:FacilitiesManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2020-01-012020-06-300001138118cbre:FacilitiesManagementMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryLeasingMembercbre:AdvisoryServicesSegmentMember2020-01-012020-06-300001138118cbre:AdvisoryLeasingMembercbre:CorporateAndReconcilingItemsMember2020-01-012020-06-300001138118cbre:AdvisoryLeasingMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:AdvisorySalesMember2020-01-012020-06-300001138118cbre:AdvisorySalesMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:PropertyManagementMember2020-01-012020-06-300001138118cbre:PropertyManagementMembercbre:CorporateAndReconcilingItemsMember2020-01-012020-06-300001138118cbre:PropertyManagementMember2020-01-012020-06-300001138118cbre:ProjectManagementMembercbre:GlobalWorkplaceSolutionsSegmentMember2020-01-012020-06-300001138118cbre:ProjectManagementMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:ValuationMember2020-01-012020-06-300001138118cbre:ValuationMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:CommercialMortgageOriginationMembercbre:AdvisoryServicesSegmentMember2020-01-012020-06-300001138118cbre:CommercialMortgageOriginationMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMembercbre:LoanServicingMember2020-01-012020-06-300001138118cbre:LoanServicingMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMembercbre:RealEstateInvestmentsSegmentMember2020-01-012020-06-300001138118cbre:InvestmentManagementPropertyManagementBrokerageAndOtherProfessionalServicesMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateDevelopmentServicesMembercbre:RealEstateInvestmentsSegmentMember2020-01-012020-06-300001138118cbre:RealEstateDevelopmentServicesMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:AdvisoryServicesSegmentMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:GlobalWorkplaceSolutionsSegmentMember2020-01-012020-06-300001138118us-gaap:OperatingSegmentsMembercbre:RealEstateInvestmentsSegmentMember2020-01-012020-06-300001138118cbre:CorporateAndReconcilingItemsMember2020-01-012020-06-30cbre:segment0001138118cbre:A2020Covid19ResponseMemberus-gaap:EmployeeSeveranceMember2021-04-012021-06-300001138118cbre:A2020Covid19ResponseMemberus-gaap:EmployeeSeveranceMember2020-04-012020-06-300001138118cbre:A2020Covid19ResponseMemberus-gaap:EmployeeSeveranceMember2021-01-012021-06-300001138118cbre:A2020Covid19ResponseMemberus-gaap:EmployeeSeveranceMember2020-01-012020-06-300001138118cbre:A2020Covid19ResponseMembercbre:CostOfRevenuesMemberus-gaap:EmployeeSeveranceMember2020-04-012020-06-300001138118cbre:A2020Covid19ResponseMembercbre:OperatingAdministrativeAndOtherExpensesMemberus-gaap:EmployeeSeveranceMember2020-04-012020-06-300001138118country:US2021-04-012021-06-300001138118country:US2020-04-012020-06-300001138118country:US2021-01-012021-06-300001138118country:US2020-01-012020-06-300001138118country:GB2021-04-012021-06-300001138118country:GB2020-04-012020-06-300001138118country:GB2021-01-012021-06-300001138118country:GB2020-01-012020-06-300001138118cbre:AllOtherCountriesMember2021-04-012021-06-300001138118cbre:AllOtherCountriesMember2020-04-012020-06-300001138118cbre:AllOtherCountriesMember2021-01-012021-06-300001138118cbre:AllOtherCountriesMember2020-01-012020-06-300001138118us-gaap:SubsequentEventMembercbre:TurnerTownsendHoldingsLimitedMember2021-07-290001138118us-gaap:SubsequentEventMembercbre:TurnerTownsendHoldingsLimitedMember2021-07-292021-07-29

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2021

or

☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from _______________ to _______________

Commission File Number

001-32205

___________________________________________________________

(1)Effective October 19, 2020, this facility was amended and the maximum facility size was temporarily increased to $1,585.0 million, and reverted back to $985.0 million on January 18, 2021.

(2)Effective July 1, 2020, this facility was amended and provides for a maximum aggregate principal amount of $400.0 million, in addition to an uncommitted $400.0 million temporary line of credit. Effective June 28, 2021, this facility was renewed with a revised interest rate of daily floating rate LIBOR plus 1.30% and a maturity date of July 15, 2022. As of June 30, 2021, the uncommitted $400.0 million temporary line of credit was not utilized.

(3)The total commitment amount of $350.0 million includes a separate sublimit borrowing in the amount of $100.0 million, which can be utilized for specific purposes as defined within the agreement. Effective June 30, 2021, this facility was renewed with a revised interest rate of daily floating LIBOR plus 1.30% and a maturity date of May 25, 2022. The sublimit is subject to an interest rate of daily floating LIBOR plus 1.30%, with a LIBOR floor of 0.30%. As of June 30, 2021, the sublimit borrowing has not been utilized.

(4)On June 28, 2019, we added a new warehouse facility for $200.0 million that contains an accordion feature which allowed for temporary increases not to exceed an additional $150.0 million. If utilized, the additional borrowings must be in predefined multiples and are not to occur more than 3 times within 12 consecutive months. Effective August 4, 2020, this facility was amended and decreased the accordion feature from $150.0 million to $100.0 million, with no changes to the predefined borrowing multiples. On September 22, 2020, the temporary increase of $100.0 million was utilized and expired on January 20, 2021. Effective June 28, 2021, the facility maturity date was extended to July 28, 2021.

(5)Effective January 15, 2021, the maximum facility was temporarily increased to $650.0 million.

(6)Effective June 30, 2021, the advised consent line was renewed for $250.0 million of capacity with a revised interest rate of daily floating LIBOR plus 1.30%, with a LIBOR floor of 0.30%, and a maturity date of May 25, 2022.

During the six months ended June 30, 2021, we had a maximum of $2.1 billion of warehouse lines of credit principal outstanding.

4.    Variable Interest Entities (VIEs)

We hold variable interests in certain VIEs in our Real Estate Investments segment which are not consolidated as it was determined that we are not the primary beneficiary. Our involvement with these entities is in the form of equity co-investments and fee arrangements.

As of June 30, 2021 and December 31, 2020, our maximum exposure to loss related to VIEs which are not consolidated was as follows (dollars in thousands):

5.    Fair Value Measurements

Topic 820 of the FASB ASC defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

•Level 1 – Quoted prices in active markets for identical assets or liabilities.

•Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value measurements from those disclosed in our 2020 Annual Report.

CBRE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020 (dollars in thousands):

			As of June 30, 2021
			Fair Value Measured and Recorded Using
			Level 1						Level 2						Level 3						Total
Assets
Available for sale securities:
Debt securities:
U.S. treasury securities			$	7,094					$	—					$	—					$	7,094
Debt securities issued by U.S. federal agencies			—						8,689						—						8,689
Corporate debt securities			—						51,177						—						51,177
Asset-backed securities			—						3,778						—						3,778
Collateralized mortgage obligations			—						1,314						—						1,314
Total available for sale debt securities			7,094						64,958						—						72,052
Equity securities			45,395						—						—						45,395
Investments in unconsolidated subsidiaries			—						—						265,531						265,531
Warehouse receivables			—						1,117,677						—						1,117,677
Total assets at fair value			$	52,489					$	1,182,635					$	265,531					$	1,500,655
Liabilities
Warrant liabilities			10,868												—						10,868
Total liabilities at fair value			$	10,868					$	—					$	—					$	10,868

			As of December 31, 2020
			Fair Value Measured and Recorded Using
			Level 1						Level 2						Level 3						Total
Assets
Available for sale securities:
Debt securities:
U.S. treasury securities			$	7,270					$	—					$	—					$	7,270
Debt securities issued by U.S. federal agencies			—						10,216						—						10,216
Corporate debt securities			—						51,244						—						51,244
Asset-backed securities			—						3,801						—						3,801
Collateralized mortgage obligations			—						1,369						—						1,369
Total available for sale debt securities			7,270						66,630						—						73,900
Equity securities			43,334						—						—						43,334
Investments in unconsolidated subsidiaries			—						—						50,000						50,000
Warehouse receivables			—						1,411,170						—						1,411,170
Total assets at fair value			$	50,604					$	1,477,800					$	50,000					$	1,578,404

We classify certain investments as level 3 in the fair value hierarchy which represent investments in non-public entities where we elected the fair value option. The valuation of these investments is determined utilizing recent market activity as well as income and/or market approach valuation methodologies. As of June 30, 2021 and December 31, 2020, investments in unconsolidated subsidiaries at fair value using NAV were $95.6 million and $66.3 million, respectively. These investments fall under practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded from the tables above.

There were no significant non-recurring fair value measurements recorded during the three and six months ended June 30, 2021.

CBRE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

There were no significant non-recurring fair value measurement recorded during the three months ended June 30, 2020. The following non-recurring fair value measurements were recorded for the six months ended June 30, 2020 (dollars in thousands):

			Net Carrying Value as of June 30, 2020						Fair Value Measured and Recorded Using																		Total Impairment Charges for the Six Months Ended June 30, 2020
									Level 1						Level 2						Level 3
Property and equipment			$	9,875					$	—					$	—					$	9,875					$	21,663
Goodwill			421,574						—						—						421,574						25,000
Other intangible assets			13,123						—						—						13,123						28,508
Total			$	444,572					$	—					$	—					$	444,572					$	75,171

During the six months ended June 30, 2020, we recorded $50.2 million of non-cash asset impairment charges in our Global Workplace Solutions segment and a non-cash goodwill impairment charge of $25.0 million in our Real Estate Investments segment. Primarily as a result of the global economic disruption and uncertainty due to Covid-19, we deemed there to be triggering events in the first quarter of 2020 that required testing of goodwill and certain assets for impairment at that time. Based on these tests, we recorded the aforementioned non-cash impairment charges, which were primarily driven by lower anticipated cash flows in certain businesses directly resulting from a downturn in forecasts as well as increased forecast risk due to Covid-19 and changes in our business going forward. These asset impairment charges were included within the line item “Asset impairments” in the accompanying consolidated statements of operations. The fair value measurements employed for our impairment evaluations were based on a discounted cash flow approach. Inputs used in these evaluations included risk-free rates of return, estimated risk premiums, terminal growth rates, working capital assumptions, income tax rates as well as other economic variables.

FASB ASC Topic 825, “Financial Instruments” requires disclosure of fair value information about financial instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as follows:

•Cash and Cash Equivalents and Restricted Cash – These balances include cash and cash equivalents as well as restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the short-term maturities of these instruments.

•Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates carrying value.

•Warehouse Receivables – These balances are carried at fair value. The primary source of value is either a contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance and purchase of a Fannie Mae or Ginnie Mae MBS (see Note 3).

•Investments in Unconsolidated Subsidiaries – A portion of these investments are carried at fair value as discussed above.

•Available for Sale Debt Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value.

•Equity Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried at their fair value.

•Investments Held in Trust - special purpose acquisition company – Funds received as part of the initial public offering of CBRE Acquisition Holdings, Inc. have been deposited in an interest-bearing U.S. based trust account. The funds will be invested only in specified U.S. government treasury bills with a maturity of 180 days or less or in money market funds. The carrying amount approximates fair value due to the short-term maturities of these instruments.

•Warrant liabilities - A liability of CBRE Acquisition Holdings, Inc., the redeemable warrants are separately traded on the NYSE under the symbol “CBAH.WS.” These warrants are carried at fair value, which was determined at quoted trading price of these instruments.

•Short-Term Borrowings – The majority of this balance represents outstanding amounts under our warehouse lines of credit of our wholly-owned subsidiary, CBRE Capital Markets. Due to the short-term nature and variable interest rates of these instruments, fair value approximates carrying value (see Notes 3 and 8).

•Senior Term Loans – Based upon information from third-party banks (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our senior term loans was approximately $770.4 million and $772.2 million at June 30, 2021 and December 31, 2020, respectively. Their actual carrying value, net of unamortized debt issuance costs, totaled $771.8 million and $785.7 million at June 30, 2021 and December 31, 2020, respectively (see Note 8).

•Senior Notes – Based on dealers’ quotes (which falls within Level 2 of the fair value hierarchy), the estimated fair value of our 4.875% senior notes was $696.3 million and $702.5 million at June 30, 2021 and December 31, 2020, respectively. The actual carrying value of our 4.875% senior notes, net of unamortized debt issuance costs and discount, totaled $595.0 million and $594.5 million at June 30, 2021 and December 31, 2020, respectively. The estimated fair value of our 2.500% senior notes was $507.2 million as of June 30, 2021. The actual carrying value of our 2.500% senior notes, net of unamortized debt issuance costs and discount, totaled $487.6 million at June 30, 2021. On December 28, 2020, we redeemed the $425.0 million aggregate outstanding principal amount of our 5.25% senior notes in full (See Note 8).

•Notes Payable on Real Estate - As of June 30, 2021 and December 31, 2020, the carrying value of our notes payable on real estate, net of unamortized debt issuance costs, was $128.7 million and $79.6 million, respectively. These notes payable were not recourse to CBRE Group, Inc., except for being recourse to the single-purpose entities that held the real estate assets and were the primary obligors on the notes payable. These borrowings have either fixed interest rates or floating interest rates at spreads added to a market index. Although it is possible that certain portions of our notes payable on real estate may have fair values that differ from their carrying values, based on the terms of such loans as compared to current market conditions, or other factors specific to the borrower entity, we do not believe that the fair value of our notes payable is significantly different than their carrying value.

6.    Goodwill

We test each of our reporting units for goodwill impairment annually at October 1st, or upon a triggering event, in accordance with ASC Topic 350, “Intangibles – Goodwill and Other.” As of January 1, 2021, we underwent an internal reorganization in our Advisory Services and Global Workplace Solutions reportable segments (see Note 14 for further discussion). This changed the composition of our reporting units which resulted in the reallocation of $101.4 million of goodwill from our Advisory Services to our Global Workplace Solutions reportable segments as of January 1, 2021. Additionally, the change in composition of our reporting units was considered a triggering event for a quantitative test as of January 1, 2021. We determined that no impairment existed as the estimated fair values of our reporting units were in excess of their respective carrying values.

7.    Investments in Unconsolidated Subsidiaries

Investments in unconsolidated subsidiaries are accounted for under the equity method of accounting. Our investment ownership percentages in equity method investments vary, generally ranging up to 50.0%.

Combined condensed financial information for the entities accounted for using the equity method is as follows (dollars in thousands):

During the second quarter of 2021, the company closed on its integration of Hana with Industrious National Management Company LLC (“Industrious”), increasing its ownership interest to 40% as of June 30, 2021.

CBRE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

8.    Long-Term Debt and Short-Term Borrowings

Long-Term Debt

Long-term debt consists of the following (dollars in thousands):

			June 30, 2021						December 31, 2020
Senior term loans, with interest ranging from 0.75% to 1.15%, due quarterly through 2024			$	774,327					$	788,759
4.875% senior notes due in 2026, net of unamortized discount			597,688						597,470
2.500% senior notes due in 2031, net of unamortized discount			492,443						—
Other			1,193						1,514
Total long-term debt			1,865,651						1,387,743
Less: current maturities of long-term debt			1,181						1,514
Less: unamortized debt issuance costs			10,143						6,027
Total long-term debt, net of current maturities			$	1,854,327					$	1,380,202

We maintain credit facilities with third-party lenders, which we use for a variety of purposes. On March 4, 2019, CBRE Services, Inc. (CBRE Services) entered into an incremental assumption agreement with respect to its credit agreement, dated October 31, 2017 (such agreement, as amended by a December 20, 2018 incremental loan assumption agreement and such March 4, 2019 incremental assumption agreement, collectively, the 2019 Credit Agreement), which (i) extended the maturity of the U.S. dollar tranche A term loans under such credit agreement, (ii) extended the termination date of the revolving credit commitments available under such credit agreement and (iii) made certain changes to the interest rates and fees applicable to such tranche A term loans and revolving credit commitments under such credit agreement. The proceeds from the new tranche A term loan facility under the 2019 Credit Agreement were used to repay the $300.0 million of tranche A term loans outstanding under the credit agreement in effect prior to the entry into the 2019 incremental assumption agreement.

The 2019 Credit Agreement is a senior unsecured credit facility that is jointly and severally guaranteed by us. On May 21, 2021, we entered into a definitive agreement whereby our subsidiary guarantors were released as guarantors from our 2019 Credit Agreement. As of June 30, 2021, the 2019 Credit Agreement provided for the following: (1) a $2.8 billion revolving credit facility, which includes the capacity to obtain letters of credit and swingline loans and terminates on March 4, 2024; (2) a $300.0 million tranche A term loan facility maturing on March 4, 2024, requiring quarterly principal payments unless our leverage ratio (as defined in the 2019 Credit Agreement) is less than or equal to 2.50 to 1.00 on the last day of the fiscal quarter immediately preceding any such payment date and (3) a €400.0 million term loan facility due and payable in full at maturity on December 20, 2023.

On July 9, 2021, CBRE Services entered into an incremental assumption agreement with respect to the 2019 Credit Agreement for purposes of increasing the revolving credit commitments available under the 2019 Credit Agreement by an aggregate principal amount of $350.0 million. The increase is comprised of an increase in domestic borrowings of $330.0 million and an increase in our U.K. subsidiaries' borrowings of $20.0 million.

On August 13, 2015, CBRE Services issued $600.0 million in aggregate principal amount of 4.875% senior notes due March 1, 2026 at a price equal to 99.24% of their face value. The 4.875% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. The 4.875% senior notes are jointly and severally guaranteed on a senior basis by us. Interest accrues at a rate of 4.875% per year and is payable semiannually in arrears on March 1 and September 1.

On March 18, 2021, CBRE Services issued $500.0 million in aggregate principal amount of 2.500% senior notes due April 1, 2031 at a price equal to 98.451% of their face value (the 2.500% senior notes). The 2.500% senior notes are unsecured obligations of CBRE Services, senior to all of its current and future subordinated indebtedness, but effectively subordinated to all of its current and future secured indebtedness. Interest accrues at a rate of 2.500% per year and is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2021. The 2.500% senior notes are redeemable at our option, in whole or in part, on or after January 1, 2031 at a redemption price of 100% of the principal amount on that date, plus accrued and unpaid interest, if any, to, but excluding the date of redemption. At any time prior to January 1, 2031, we may redeem all or a portion of the notes at a redemption price equal to the greater of (1) 100% of the principal amount of the notes to

be redeemed and (2) the sum of the present value at the date of redemption of the remaining scheduled payments of principal and interest thereon to January 1, 2031, assuming the notes matured on January 1, 2031, discounted to the date of redemption on a semi-annual basis at an adjusted rate equal to the treasury rate plus 20 basis points, minus accrued and unpaid interest to, but excluding, the date of redemption, plus, in either case, accrued and unpaid interest, if any, to, but not including the redemption date. The amount of the 2.500% senior notes, net of unamortized discount and unamortized debt issuance costs, included in the accompanying consolidated balance sheet was $487.6 million at June 30, 2021.

The indentures governing our 4.875% senior notes and 2.500% senior notes contain restrictive covenants that, among other things, limit our ability to create or permit liens on assets securing indebtedness, enter into sale/leaseback transactions and enter into consolidations or mergers. In addition, these indentures require that the 4.875% senior notes and 2.500% senior notes be jointly and severally guaranteed on a senior basis by CBRE Group, Inc. and any domestic subsidiary that guarantees the 2019 Credit Agreement. In addition, our 2019 Credit Agreement also requires us to maintain a minimum coverage ratio of consolidated EBITDA (as defined in the 2019 Credit Agreement) to consolidated interest expense of 2.00x and a maximum leverage ratio of total debt less available cash to consolidated EBITDA (as defined in the 2019 Credit Agreement) of 4.25x (and in the case of the first four full fiscal quarters following consummation of a qualified acquisition (as defined in the 2019 Credit Agreement), 4.75x) as of the end of each fiscal quarter. On this basis, our coverage ratio of consolidated EBITDA to consolidated interest expense was 39.78x for the trailing twelve months ended June 30, 2021, and our leverage ratio of total debt less available cash to consolidated EBITDA was (0.02)x as of June 30, 2021.

Short-Term Borrowings

Revolving Credit Facility

The revolving credit facility under the 2019 Credit Agreement allows for borrowings outside of the U.S., with a $200.0 million sub-facility available to CBRE Services, one of our Canadian subsidiaries, one of our Australian subsidiaries and one of our New Zealand subsidiaries and a $300.0 million sub-facility available to CBRE Services and one of our U.K. subsidiaries. On July 9, 2021, the U.K. subsidiaries sub-facility was increased to $320.0 million. Borrowings under the revolving credit facility bear interest at varying rates, based at our option, on either (1) the applicable fixed rate plus 0.680% to 1.075% or (2) the daily rate plus 0.0% to 0.075%, in each case as determined by reference to our Credit Rating (as defined in the 2019 Credit Agreement). The 2019 Credit Agreement requires us to pay a fee based on the total amount of the revolving credit facility commitment (whether used or unused). As of June 30, 2021, no amount was outstanding under the revolving credit facility other than letters of credit totaling $2.0 million. These letters of credit, which reduce the amount we may borrow under the revolving credit facility, were primarily issued in the ordinary course of business.

Warehouse Lines of Credit

CBRE Capital Markets has warehouse lines of credit with third-party lenders for the purpose of funding mortgage loans that will be resold, and a funding arrangement with Fannie Mae for the purpose of selling a percentage of certain closed multifamily loans to Fannie Mae. These warehouse lines are recourse only to CBRE Capital Markets and are secured by our related warehouse receivables. See Note 3 for additional information.

9.    Leases

We are the lessee in contracts for our office space tenancies, for leased vehicles and for our wholly-owned subsidiary Hana. These arrangements account for the significant portion of our lease liabilities and right-of-use assets. We monitor our service arrangements to evaluate whether they meet the definition of a lease. 

Supplemental balance sheet information related to our leases is as follows (dollars in thousands):

Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in thousands):

(1)The non-cash activity in the right-of-use assets resulted from lease modifications and remeasurements.

10.    Commitments and Contingencies

We are a party to a number of pending or threatened lawsuits arising out of, or incident to, our ordinary course of business. We believe that any losses in excess of the amounts accrued therefore as liabilities on our financial statements are unlikely to be significant, but litigation is inherently uncertain and there is the potential for a material adverse effect on our financial statements if one or more matters are resolved in a particular period in an amount materially in excess of what we anticipated.

In January 2008, CBRE MCI, a wholly-owned subsidiary of CBRE Capital Markets, entered into an agreement with Fannie Mae under Fannie Mae’s Delegated Underwriting and Servicing Lender Program (DUS Program), to provide financing for multifamily housing with five or more units. Under the DUS Program, CBRE MCI originates, underwrites, closes and services loans without prior approval by Fannie Mae, and typically, is subject to sharing up to one-third of any losses on loans originated under the DUS Program. CBRE MCI has funded loans with unpaid principal balances of $34.6 billion at June 30, 2021, of which $30.0 billion was subject to such loss sharing arrangements. CBRE MCI, under its agreement with Fannie Mae, must post cash reserves or other acceptable collateral under formulas established by Fannie Mae to provide for sufficient capital in the event losses occur. As of both June 30, 2021 and December 31, 2020, CBRE MCI had a $95.0 million letter of credit under this reserve arrangement and had recorded a liability of approximately $61.2 million and $57.1 million, respectively, for its loan loss guarantee obligation under such arrangement. Fannie Mae’s recourse under the DUS Program is limited to the assets of CBRE MCI, which assets totaled approximately $796.1 million (including $323.9 million of warehouse receivables, a substantial majority of which are pledged against warehouse lines of credit and are therefore not available to Fannie Mae) at June 30, 2021.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in the United States in response to the Covid-19 pandemic. The CARES Act, among other things, permits borrowers with government-backed mortgages from Government Sponsored Enterprises who are experiencing a financial hardship to obtain forbearance of their loans. For Fannie Mae loans that we service, CBRE MCI is obligated to advance (for a forbearance period up to 90 consecutive days and potentially longer) scheduled principal and interest payments to Fannie Mae, regardless of whether the borrowers actually make the payments. These advances are reimbursable by Fannie Mae after 120 days. As of June 30, 2021, total advances for principal and interest were $9.3 million, of which $5.6 million have already been reimbursed.

CBRE Capital Markets participates in Freddie Mac’s Multifamily Small Balance Loan (SBL) Program. Under the SBL program, CBRE Capital Markets has certain repurchase and loss reimbursement obligations. We could potentially be obligated to repurchase any SBL loan originated by CBRE Capital Markets that remains in default for 120 days following the forbearance period, if the default occurred during the first 12 months after origination and such loan had not been earlier securitized. In addition, CBRE Capital Markets may be responsible for a loss not to exceed 10% of the original principal amount of any SBL loan that is not securitized and goes into default after the 12-month repurchase period. CBRE Capital Markets must post a cash reserve or other acceptable collateral to provide for sufficient capital in the event the obligations are triggered. As of both June 30, 2021 and December 31, 2020, CBRE Capital Markets had posted a $5.0 million letter of credit under this reserve arrangement.

We had outstanding letters of credit totaling $145.7 million as of June 30, 2021, excluding letters of credit for which we have outstanding liabilities already accrued on our consolidated balance sheet related to our subsidiaries’ outstanding reserves for claims under certain insurance programs as well as letters of credit related to operating leases. The CBRE Capital Markets letters of credit totaling $95.0 million as of June 30, 2021 referred to in the preceding paragraphs represented the majority of the $145.7 million outstanding letters of credit as of such date. The remaining letters of credit are primarily executed by us in the ordinary course of business and expire at the end of each of the respective agreements.

We had guarantees totaling $38.7 million as of June 30, 2021, excluding guarantees related to pension liabilities, consolidated indebtedness and other obligations for which we have outstanding liabilities already accrued on our consolidated balance sheet, and excluding guarantees related to operating leases. The $38.7 million primarily represents guarantees executed by us in the ordinary course of business, including various guarantees of management and vendor contracts in our operations overseas, which expire at the end of each of the respective agreements.

In addition, as of June 30, 2021, we had issued numerous non-recourse carveout, completion and budget guarantees relating to development projects for the benefit of third parties. These guarantees are commonplace in our industry and are made by us in the ordinary course of our Real Estate Investments business. Non-recourse carveout guarantees generally require that our project-entity borrower not commit specified improper acts, with us potentially liable for all or a portion of such entity’s indebtedness or other damages suffered by the lender if those acts occur. Completion and budget guarantees generally require us to complete construction of the relevant project within a specified timeframe and/or within a specified budget, with us potentially being liable for costs to complete in excess of such timeframe or budget. While there can be no assurance, we do not expect to incur any material losses under these guarantees.

An important part of the strategy for our Real Estate Investments business involves investing our capital in certain real estate investments with our clients. These co-investments generally total up to 2.0% of the equity in a particular fund. As of June 30, 2021, we had aggregate commitments of $118.7 million to fund these future co-investments. Additionally, an important part of our Real Estate Investments business strategy is to invest in unconsolidated real estate subsidiaries as a principal (in most cases co-investing with our clients). As of June 30, 2021, we had committed to fund $55.5 million of additional capital to these unconsolidated subsidiaries.

11.    Income Taxes

Our provision for income taxes on a consolidated basis was $133.4 million for the three months ended June 30, 2021 as compared to $18.8 million for the three months ended June 30, 2020. The increase of $114.6 million is primarily related to the corresponding increase in our consolidated pre-tax book income. Our effective tax rate increased to 23.1% for the three months ended June 30, 2021 from 18.6% for the three months ended June 30, 2020 primarily resulted from a percentage decrease of favorable permanent book tax differences and tax credits in 2021.

Our provision for income taxes on a consolidated basis was $209.8 million for the six months ended June 30, 2021 as compared to $70.0 million for the six months ended June 30, 2020. The increase of $139.8 million is primarily related to the corresponding increase in consolidated pre-tax book income. Our effective tax rate increased to 22.7% for the six months ended June 30, 2021 from 21.5% for the six months ended June 30, 2020 primarily resulting from a percentage decrease of favorable permanent book tax differences and tax credits in 2021.

Our effective tax rate for the three and six months ended June 30, 2021 was different than the U.S. federal statutory tax rate of 21.0% primarily due to U.S. state taxes and favorable permanent book tax differences.

As of June 30, 2021 and December 31, 2020, the company had gross unrecognized tax benefits of $172.7 million and $168.5 million, respectively. The net increase of $4.2 million primarily resulting from an accrual of gross unrecognized tax benefits of $9.9 million and a release of $5.7 million of gross unrecognized tax benefits primarily related to the expiration of statute of limitations in various tax jurisdictions.

The CARES Act has not had, nor is it expected to have, a significant impact on our effective tax rate for 2021.

CBRE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

12.    Income Per Share and Stockholders' Equity

The calculations of basic and diluted income per share attributable to CBRE Group, Inc. stockholders are as follows (dollars in thousands, except share and per share data):

			Three Months Ended June 30,												Six Months Ended June 30,
			2021						2020						2021						2020
Basic Income Per Share
Net income attributable to CBRE Group, Inc. stockholders			$	442,637					$	81,897					$	708,839					$	254,092
Weighted average shares outstanding for basic income per share			335,643,233						335,126,126						335,751,530						335,048,115
Basic income per share attributable to CBRE Group, Inc. stockholders			$	1.32					$	0.24					$	2.11					$	0.76
Diluted Income Per Share
Net income attributable to CBRE Group, Inc. stockholders			$	442,637					$	81,897					$	708,839					$	254,092
Weighted average shares outstanding for basic income per share			335,643,233						335,126,126						335,751,530						335,048,115
Dilutive effect of contingently issuable shares			3,859,638						2,235,293						3,789,824						3,501,690
Weighted average shares outstanding for diluted income per share			339,502,871						337,361,419						339,541,354						338,549,805
Diluted income per share attributable to CBRE Group, Inc. stockholders			$	1.30					$	0.24					$	2.09					$	0.75

For the three and six months ended June 30, 2021, 3,974 and 15,852, respectively, of contingently issuable shares were excluded from the computation of diluted income per share because their inclusion would have had an anti-dilutive effect.

For the three and six months ended June 30, 2020, 2,381,476 and 1,585,601, respectively, of contingently issuable shares were excluded from the computation of diluted income per share because their inclusion would have had an anti-dilutive effect.

In February 2019, our board of directors authorized a new program for the repurchase of up to $300.0 million of our common stock over three years, effective March 11, 2019. In both August and November 2019, our board of directors authorized an additional $100.0 million under our program, bringing the total authorized repurchase amount under the program to a total of $500.0 million. During the year ended December 31, 2020, we spent $50.0 million to repurchase 1,050,084 shares of our common stock at an average price of $47.62 per share using cash on hand. During the three months ended March 31, 2021, we spent $64.1 million to repurchase an additional 831,274 shares of our common stock with an average price of $77.15 per share using cash on hand. During the three months ended June 30, 2021, we spent $24.1 million to repurchase an additional 300,454 shares of our common stock with an average price of $80.31 per share using cash on hand. As of June 30, 2021, we had $261.7 million of capacity remaining under our stock repurchase program.

13.    Revenue from Contracts with Customers

We account for revenue with customers in accordance with FASB ASC Topic, “Revenue from Contracts with Customers” (Topic 606). Revenue is recognized when or as control of the promised services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to receive in exchange for those services.

CBRE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

			Three Months Ended June 30, 2020
			Advisory Services (4)						Global Workplace Solutions (4)						Real Estate Investments						Corporate, other and eliminations (4)						Consolidated
Topic 606 Revenue:
Facilities management			$	—					$	3,297,039					$	—					$	—					$	3,297,039
Advisory leasing			521,778						—						—						—						521,778
Advisory sales			243,007						—						—						—						243,007
Property management			400,110						—						—						(4,892)						395,218
Project management			—						473,394						—						—						473,394
Valuation			131,837						—						—						—						131,837
Commercial mortgage origination (1)			20,115						—						—						—						20,115
Loan servicing (2)			9,021						—						—						—						9,021
Investment management			—						—						103,132						—						103,132
Development services			—						—						57,700						—						57,700
Topic 606 Revenue			1,325,868						3,770,433						160,832						(4,892)						5,252,241
Out of Scope of Topic 606 Revenue:
Commercial mortgage origination			80,335						—						—						—						80,335
Loan servicing			48,029						—						—						—						48,029
Development services (3)			—						—						779						—						779
Total Out of Scope of Topic 606 Revenue			128,364						—						779						—						129,143
Total Revenue			$	1,454,232					$	3,770,433					$	161,611					$	(4,892)					$	5,381,384

_______________________________

(1)We earn fees for arranging financing for borrowers with third-party lender contacts. Such fees are in scope of Topic 606.

(2)Loan servicing fees earned from servicing contracts for which we do not hold mortgage servicing rights are in scope of Topic 606.

(3)Out of scope revenue for development services represents selling profit from transfers of sales-type leases in the scope of Topic 842.

(4)Prior period segment results have been recast to conform to the changes as discussed in Note 14.

CBRE GROUP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

			Six Months Ended June 30, 2021
			Advisory Services						Global Workplace Solutions						Real Estate Investments						Corporate, other and eliminations						Consolidated
Topic 606 Revenue:
Facilities management			$	—					$	6,915,255					$	—					$	—					$	6,915,255
Advisory leasing			1,213,124						—						—						—						1,213,124
Advisory sales			1,004,146						—						—						—						1,004,146
Property management			850,432						—						—						(10,602)						839,830
Project management			—						1,193,350						—						—						1,193,350
Valuation			340,816						—						—						—						340,816
Commercial mortgage origination (1)			105,962						—						—						—						105,962
Loan servicing (2)			20,505						—						—						—						20,505
Investment management			—						—						271,342						—						271,342
Development services			—						—						170,692						—						170,692
Topic 606 Revenue			3,534,985						8,108,605						442,034						(10,602)						12,075,022
Out of Scope of Topic 606 Revenue:
Commercial mortgage origination			195,782						—						—						—						195,782
Loan servicing			114,230						—						—						—						114,230
Development services (3)			—						—						12,458						—						12,458
Total Out of Scope of Topic 606 Revenue			310,012						—						12,458						—						322,470
Total Revenue			$	3,844,997					$	8,108,605					$	454,492					$	(10,602)					$	12,397,492