Shares of CBRE experienced significant volatility last week, with the stock dropping nearly 9 percent on Thursday to close at $136. This decline marked a two-day slide of 20 percent, the steepest since 2020, as investors expressed concern that rapid advancements in artificial intelligence (AI) could reduce demand for office space and disrupt traditional brokerage models. The trend affected other companies in the sector as well, including JLL and Newmark, which also saw notable declines.
However, CBRE CEO Bob Sulentic presented a different perspective during an earnings call on Thursday. According to Sulentic, “We don’t get our brokerage leads online somewhere,” emphasizing the importance of brokers’ “deep knowledge” with occupiers and investors. He argued that strategic advice on major transactions and oversight of global development projects are not easily replicated by technology.
Sulentic noted that AI is actually benefiting CBRE’s operations. The company has introduced internal AI tools to help brokers access data more efficiently and at lower cost. Additionally, the growth of AI is driving demand for one of CBRE’s fastest-growing business segments: data centers.
CBRE reported record revenue for 2025 at $40.6 billion, representing a 13 percent increase year-over-year. Fourth-quarter revenue rose by 12 percent to $11.6 billion, while net income climbed nearly 20 percent to about $1.2 billion for the year. Core earnings per share reached $2.73, surpassing Wall Street expectations.
Data center and digital infrastructure activities contributed approximately 14 percent of CBRE’s pre-tax earnings in 2025. The firm anticipates its data center business will generate $2 billion in revenue in 2026, growing at an annual rate of about 20 percent.
To support this expansion, CBRE acquired technical services firm Direct Line Global in 2024 and completed a $1.2 billion purchase of Pearce Services from New Mountain Capital in November. These acquisitions extend CBRE’s capabilities into cooling systems and electrical infrastructure necessary for server farms.
Sulentic acknowledged concerns about an AI-driven bubble but said it is important to consider context: five years ago such levels of data center activity were unimaginable; five years from now it remains uncertain whether growth will continue or decline.
“What’s happening is that talent is being used to support the growth of AI,” Sulentic said. “So we think there’s going to be enduring growth there.”
