CBRE Group CBRE announced that it has completed the combination of its project management business with Turner & Townsend. Moreover, Turner & Townsend’s board chair and CEO, Vincent Clancy, has joined CBRE’s board of directors.

Turner & Townsend is a majority-owned subsidiary of CBRE since 2021. It offers program management, cost consultancy and project management services around the world. Since 2021, Turner & Townsend’s revenues increased at a compound annual rate of more than 20%.

Per Bob Sulentic, chair and CEO of CBRE, “Our unified project management business represents an offering that is unmatched for its scale and breadth of capabilities. Under Vincent’s exemplary leadership, it is poised to benefit from powerful secular trends in areas like infrastructure, green energy transition and employee experience.” Sulentic also added, “Our Board will benefit greatly from the insights Vincent has developed from running a highly successful global business and his deep knowledge of key growth sectors for CBRE.”

CBRE now owns 70% of the combined Turner & Townsend/CBRE Project Management business. From the beginning of 2025, CBRE will report Project Management results as a standalone business segment. This will provide increased transparency to investors.

CBRE: In a Nutshell

CBRE Group is well-poised to gain from its wide range of real estate products and services. The outsourcing business remains healthy and its pipeline is likely to remain elevated, offering it scope for growth. Strategic buyouts and technology investments are expected to drive its performance. However, persistent macroeconomic uncertainties add to the company’s woes.

Over the past six months, shares of this Zacks Rank #3 (Hold) company have rallied 48.8% compared with the industry’s upside of 20.9%.

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Stocks to Consider

Some better-ranked stocks from the operations real estate industry are Jones Lang JLL and Kennedy-Wilson KW, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for JLL’s 2024 and 2025 earnings per share (EPS) is pinned at $13.60 and $16.42, suggesting year-over-year growth of 83.8% and 20.7%, respectively.

The Zacks Consensus Estimate for KW’s 2024 EPS stands at $3.00, indicating a significant increase from the year-ago reported figure. For 2025, EPS is pinned at $3.05, suggesting year-over-year growth of 1.7%.

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