Shares of CBRE experienced significant volatility last week as concerns about artificial intelligence impacted the real estate sector. On Thursday, CBRE’s stock dropped nearly 9 percent to close at $136, following a two-day decline of 20 percent—its largest since 2020. The stock continued to fall early Friday before rebounding by more than 5 percent by midday, ultimately closing at $142, up 4.4 percent from Thursday’s finish.
Other companies in the industry were also affected. JLL saw its shares fall by 7.6 percent and Newmark dropped over 4 percent on Thursday. Analysts described this reaction as an “AI scare trade,” with worries spreading from brokerages to real estate investment trusts.
During an earnings call on Thursday, CBRE CEO Bob Sulentic addressed these concerns directly, expressing confidence in the resilience of his company’s business model despite advances in AI technology. According to the Dallas Business Journal, Sulentic said, “We don’t get our brokerage leads online somewhere,” highlighting the importance of brokers’ relationships with occupiers and investors and their expertise in managing complex transactions and global development projects.
Sulentic argued that artificial intelligence is enhancing rather than threatening CBRE’s operations. He explained that internal AI tools have helped brokers access data more efficiently and at lower costs. Additionally, he noted that technology is driving growth in one of CBRE’s key areas: data centers.
CBRE reported record revenue for 2025 at $40.6 billion, a year-over-year increase of 13 percent. Fourth-quarter revenue rose by 12 percent to $11.6 billion, while net income for the year grew nearly 20 percent to approximately $1.2 billion. Core earnings per share reached $2.73, surpassing Wall Street expectations.
Data center and digital infrastructure work made up about 14 percent of CBRE’s pre-tax earnings in 2025, according to Sulentic. The company anticipates its data center business will generate $2 billion in revenue in 2026, reflecting projected annual growth of around 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, strengthening its position in cooling systems and electrical infrastructure for server farms.
While acknowledging the possibility that enthusiasm for AI could lead to a bubble, Sulentic emphasized uncertainty about long-term trends: five years ago current levels of data center activity were unimaginable; five years from now it is unclear whether growth will continue or slow down.
“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.”
