Latest news with #CBRE Group
Yahoo
3 days ago
- Business
- Yahoo
3PLs dominating warehouse leasing market
A pair of reports published this week from leading industrial real estate firms said the 3PL sector has been the most active in bidding and procuring new space. The world's largest commercial real estate services firm, CBRE Group, Inc. (NYSE: CBRE), said 3PLs accounted for more signed leases of 1-million-square-foot-plus properties than any other industrial vertical during the first half of this year. Third-party logistics providers were occupiers of 38 of the top 100 industrial leases, accounting for 28.9 million square feet of space. The group signed just 28 leases totaling 20.6 million square feet in the 2024 first half. The report said 3PLs were able to take a larger share of the mega lease market as many retailers and manufacturers are now outsourcing warehousing and distribution operations due to higher rents and operating costs. Further, activity among e-commerce tenants plummeted, with the group logging a 77% year-over-year decline in lease count (to just 7 new leases) and total square footage leased dropping 64% y/y (to 4.7 million). 'The drop-off reflects broader restructuring across the e-commerce sector, with many firms continuing to scale back after a period of rapid growth,' the report said. An annual demand analysis from JLL, Inc. (NYSE: JLL) showed 3PL, logistics and distribution tenants now account for the largest share of the pipeline. Demand from the group was up 12.8% y/y to 185.4 million square feet. (The study is a snapshot in time providing 'the most thorough preview of potential future leasing decisions.') Conversely, the report showed traditional retailers reduced their expected space requirements by 16.7% y/y. 'These opposing trends highlight how trade policy uncertainties and rising costs are fundamentally reshaping industrial real estate dynamics, with retailers becoming more cautious while logistics providers actively position themselves against supply chain disruptions,' the JLL repot said. Prospective logistics-oriented tenants now account for 15.4% of total demand through 2026. The increase among the group is partly due to an inventory pull forward ahead of a changing trade landscape. JLL noted rising interest from manufacturers, which are attempting to move production closer to the end consumer. It also said that interest in build-to-suit properties has increased more than 117% since 2018, 'reflecting a strategic move towards long-term cost control, operational stability, and asset appreciation in an evolving industrial real estate landscape.' Overall, JLL said demand was down 10.9% y/y as macroeconomic uncertainty has delayed decision making. Tenants are now active in the market for 11 months on average compared to the pandemic when they were making decisions in just 3.5 months. CBRE, too, noted overall demand weakness. Total mega warehouse leasing activity fell by more than half in the 2025 first half. Signed lease count fell 58% y/y (to 13 leases) with total new space leased dropping 55% (to 15.6 million square feet). More FreightWaves articles by Todd Maiden: Yellow Corp. to sell Ontario terminal, 2 others for $16M Freight shipment decline streak extends to 30 months, Cass says Landstar says $3.4M jury verdict, other charges to weigh on Q3 The post 3PLs dominating warehouse leasing market appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Are Wall Street Analysts Bullish on CBRE Group Stock?
Valued at $45.7 billion by market cap, Dallas-based CBRE Group, Inc. (CBRE) is the global leader in commercial real estate services and investment. It provides integrated services to real estate investors and occupiers, and operates through Advisory Services, Global Workplace Solutions, and Real Estate Investments segments. CBRE employs nearly 140,000 people in its 500+ offices spread across 100+ countries around the globe. The real estate giant has notably outperformed the broader market over the past year. CBRE stock has soared 44.7% over the past 52 weeks and 18.9% in 2025, compared to the S&P 500 Index's ($SPX) 20.6% surge over the past year and 9.6% returns in 2025. More News from Barchart This High-Yield (7%) Dividend Stock Is Down Significantly in 2025. Should You Buy the Dip? Dear CoreWeave Stock Fans, Mark Your Calendars for August 14 Warren Buffett Warns Investing At 'Too-High Purchase Price' Even for 'an Excellent Company' Can Undo a Decade of Smart Investing Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Narrowing the focus, CBRE has also outperformed the sector-focused Real Estate Select Sector SPDR Fund's (XLRE) 1.2% dip over the past 52 weeks and 1% uptick on a YTD basis. CBRE Group's stock prices shot up 7.8% in a single trading session following the release of its impressive Q2 results on Jul. 29. Despite the macro uncertainties, CBRE's occupier and investor clients largely proceeded with executing their plans during the quarter. This helped the company maintain its solid momentum and boosted CBRE's revenues by 16.2% year-over-year to $9.8 billion, exceeding the Street estimates by 4.1%. Furthermore, its core EBITDA soared 28.9% year-over-year to $658 million, and core EPS skyrocketed by an even more impressive 45.7% rate to $1.19, surpassing the consensus estimates by 13.3%. For the full fiscal 2025, ending in December, analysts expect CBRE to report a core EPS of $6.18, up 21.1% year-over-year. Furthermore, the company has a solid earnings surprise history. It has surpassed the Street's bottom-line estimates in each of the past four quarters by notable margins. The stock maintains a consensus 'Strong Buy' rating overall. Among the 11 analysts covering the stock, opinions include seven 'Strong Buys,' two 'Moderate Buys,' and two 'Holds.' This configuration has remained stable in recent months. On Jul. 30, Evercore ISI Group analyst Steve Sakwa maintained an 'Outperform' rating on the stock and raised the price target from $147 to $164. As of writing, CBRE's mean price target of $163.20 represents a modest 4.5% upside potential. The street-high target of $190 suggests a notable 21.7% premium to current price levels. On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
