CBRE reported 15% year-over-year revenue growth in its building operations and experience segment, driven by its local facilities management business, data center solutions and contributions from its Industrious and Pearce Services acquisitions, the company said in its fourth quarter 2025 earnings presentation on Thursday.
Facilities management revenue grew 13%, led by outsized growth in data center services and continued double-digit growth in its local facilities management business, which was primarily boosted by expansion in the Americas, according to its earnings release. Enterprise facilities management growth was driven by the life sciences, healthcare and financial services sectors, the company said.
The company’s local facilities management segment covers a single complex asset, like a museum or a hospital, or a group of assets of a similar type in a single geography. It also covers small-project work, like roof and parking lot replacements.
Going into 2026, the company is focused on boosting revenue in its building operations and experience segment, or BOE, and sustaining the outsized growth it’s seeing in some other sectors, Bob Sulentic, CEO of CBRE, said on the company’s earnings call.
Property management revenue showed significant strength, rising 28% year over year, benefiting from contributions from flexible workplace operator Industrious, and infrastructure services company Pearce Services, both of which CBRE acquired last year.
“We continue to build businesses that are benefiting from secular tailwinds,” Sulentic said. “An example is the Pearce Services acquisition … which expanded our technical services capabilities in the digital infrastructure market.”
The firm’s data center solutions business is another example, according to Sulentic. “We’ve created an integrated offering for the most important hyper scalers, [which] consists of services related to a data center’s technical infrastructure called the white space and the building operating systems called the gray space, along with traditional facilities management services,” he said.
Revenue from this data center business is growing at 20% per year and is expected to reach $2 billion in 2026, Sulentic said on the call. More broadly, data center and digital infrastructure work across CBRE’s four business segments accounted for approximately 14% of the firm’s core EBITDA in 2025, he noted.
Leasing revenue grew 12% in the U.S., driven by industrial and data centers. Data center leasing revenue more than doubled year over year in the quarter, with industrial leasing growing 20%, CBRE CFO Emma Giamartino said on the call. The company has a deep presence in that market segment, she said.
“In Q4, we saw large industrial occupiers act in advance of upcoming lease expiration, often upgrading their space,” she said.
U.S. office revenue remained strong, reaching record levels for both the quarter and full year, although the company saw some large deals slip into 2026, which should be a benefit its 2026 first quarter performance, Giamartino said.
Despite concerns that the office sector may see less demand in the long-term due to the proliferation of AI, Sulentic said, it is difficult to say there’s going to be less office space as a result of AI and that over the next few years he believes the firm is in a “sweet spot” for office-based leasing.
“Every kind of company you can imagine is using their office space to attract talent and make talent more efficient and effective, and that’s created a lot of opportunity for us,” he said. “In the long run, will there be less office users because AI disintermediates some of the work people do? That’s possible, but what we’re likely to see is a lot more AI-related workers back-fill other types of workers that may go away because of AI.”
CBRE’s fourth quarter project management revenue grew 8% year over year, underpinned by real estate projects for hyperscalers in the U.S. and new infrastructure mandates in the U.K. public sector, according to the earnings report. Giamartino noted that the firm expects the complex integration of Turner and Townsend and CBRE’s legacy project management segment to be largely complete this year.
