CBRE GROUP, INC.CBRE
CBRE GROUP, INC. Leases Disclosure
13. Leases
We are the lessee in contracts for office space tenancies, leased vehicles, office space in our flexible workplace solutions business, Industrious, and leases of land in our development business. As it relates to service arrangements, we monitor these types of contracts to evaluate whether they meet the definition of a lease.
Supplemental balance sheet information related to our leases is as follows (dollars in millions):
| December 31, | ||||||||||||||||||||
| Category | Classification | 2025 | 2024 | |||||||||||||||||
| Assets | ||||||||||||||||||||
Operating (1) | Operating lease assets | $ | 2,062 | $ | 1,198 | |||||||||||||||
| Finance | 334 | 260 | ||||||||||||||||||
| Total leased assets | $ | 2,396 | $ | 1,458 | ||||||||||||||||
| Liabilities | ||||||||||||||||||||
| Current: | ||||||||||||||||||||
Operating (2) | Operating lease liabilities | $ | 284 | $ | 200 | |||||||||||||||
| Finance | 69 | 43 | ||||||||||||||||||
| Non-current: | ||||||||||||||||||||
Operating (2) | Non-current operating lease liabilities | 2,121 | 1,307 | |||||||||||||||||
| Finance | 167 | 122 | ||||||||||||||||||
| Total lease liabilities | $ | 2,641 | $ | 1,672 | ||||||||||||||||
(1)Operating lease assets as of December 31, 2025 includes operating lease assets acquired from Industrious.
(2)Current and non-current operating lease liabilities as of December 31, 2025 include operating lease liabilities acquired from Industrious.
Components of lease cost are as follows (dollars in millions):
| Year Ended December 31, | ||||||||||||||||||||
| Component | Classification | 2025 | 2024 | |||||||||||||||||
| Operating lease cost | Cost of Revenue and Operating, administrative and other | $ | 319 | $ | 230 | |||||||||||||||
Finance lease cost: | ||||||||||||||||||||
| Amortization of right-to-use assets | (1) | 53 | 41 | |||||||||||||||||
| Interest on lease liabilities | Interest expense | 4 | 3 | |||||||||||||||||
| Variable lease cost | (2) | 286 | 129 | |||||||||||||||||
| Sublease income | Revenue | (9) | (8) | |||||||||||||||||
| Total lease cost | $ | 653 | $ | 395 | ||||||||||||||||
________________________________________________________________________________________________________________________________________
(1)Amortization costs of $37 million and $27 million from vehicle finance leases utilized in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively. Amortization costs of $16 million and $14 million from all other finance leases are included in the “Depreciation and amortization” line item in the accompanying consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively.
(2)Variable lease costs of $189 million and $33 million from leases in client outsourcing arrangements are included in the “Cost of revenue” line item in the accompanying consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively. Variable lease costs of $97 million and $96 million from all other leases are included in the “Operating, administrative and other” line item in the accompanying consolidated statements of operations for the years ended December 31, 2025 and 2024, respectively. Variable lease costs increased over the previous year due to lease costs incurred by Industrious after the business combination.
Weighted-average remaining lease term and discount rate for our operating and finance leases are as follows:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted-average remaining lease term: | |||||||||||
Operating leases (1) | 11 years | 39 years | |||||||||
Finance leases (2) | 18 years | 60 years | |||||||||
| Weighted-average discount rate: | |||||||||||
Operating leases (1) | 5.3% | 5.2% | |||||||||
Finance leases (2) | 4.7% | 5.3% | |||||||||
________________________________________________________________________________________________________________________________________
(1)Operating leases as of December 31, 2025 and 2024 include 90+ year leases on real estate under development. If excluded, the weighted-average remaining lease term would be 9 years as of December 31, 2025 and 2024 and weighted-average discount rate would be 4.8% and 4.3% as of December 31, 2025 and 2024, respectively.
(2)Finance leases as of December 31, 2025 and 2024 included a 99-year lease on real estate held for investment. If excluded, the weighted-average remaining lease term would be 3 years as of December 31, 2025 and 2024 and weighted-average discount rate would be 4.3% and 3.1%, as of December 31, 2025 and 2024, respectively. This excludes certain land leases up to 999 years held by our U.K. development business.
Maturities of lease liabilities by fiscal year as of December 31, 2025 are as follows (dollars in millions):
| Operating Leases | Finance Leases | ||||||||||
| 2026 | $ | 336 | $ | 72 | |||||||
| 2027 | 379 | 64 | |||||||||
| 2028 | 350 | 46 | |||||||||
| 2029 | 323 | 26 | |||||||||
| 2030 | 298 | 7 | |||||||||
| Thereafter | 1,991 | 294 | |||||||||
Total remaining lease payments at December 31, 2025 | 3,677 | 509 | |||||||||
| Less: Interest | 1,272 | 273 | |||||||||
Present value of lease liabilities at December 31, 2025 | $ | 2,405 | $ | 236 | |||||||
Supplemental cash flow information and non-cash activity related to our operating and finance leases are as follows (dollars in millions):
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash outflows from operating leases | $ | 343 | $ | 238 | |||||||
Operating cash outflows from finance leases | 6 | 4 | |||||||||
Financing cash outflows from finance leases | 56 | 44 | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities (1) | 980 | 216 | |||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | 120 | 113 | |||||||||
Other non-cash increases in operating lease right-of-use assets (2) | 94 | 166 | |||||||||
Other non-cash decreases in finance lease right-of-use assets (2) | (9) | (12) | |||||||||
________________________________________________________________________________________________________________________________________
(1)Increase in right-of-use assets obtained in exchange for new operating lease liabilities for the year ended December 31, 2025 primarily relates to leases acquired in conjunction with the Industrious acquisition.
(2)The non-cash activity in the right-of-use assets resulted from lease modifications/remeasurements and terminations.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Mar 2, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.