v3.26.1
Fair Value Measurements
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements 7.          Fair Value Measurements
FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” (Topic 820) defines fair value as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair
value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.
The three levels of inputs used to measure fair value are as follows:
•Level 1 – Quoted prices in active markets for identical assets or liabilities.
•Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets
and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not
active; or other inputs that are observable or can be corroborated by observable market data.
•Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair
value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and
similar techniques that use significant unobservable inputs.
There have been no significant changes to the valuation techniques and inputs used to develop the recurring fair value
measurements from those disclosed in our 2025 Annual Report.
The following tables present the fair value of assets and liabilities measured at fair value on a recurring basis as of
June 30, 2026 and December 31, 2025 (dollars in millions):
As of June 30, 2026
Fair Value Measured and Recorded Using
Level 1
Level 2
Level 3
Total
Assets
Available for sale debt securities:
U.S. treasury securities
$5
$—
$—
$5
Corporate debt securities
—
37
—
37
Asset-backed securities
—
6
—
6
Total available for sale debt securities
5
43
—
48
Equity securities
20
—
—
20
Investments in unconsolidated subsidiaries
—
—
19
19
Warehouse receivables
—
722
—
722
Derivative assets
—
99
—
99
Total assets at fair value
$25
$864
$19
$908
Liabilities
Contingent consideration
—
—
34
34
Derivative liabilities
—
343
—
343
Total liabilities at fair value
$—
$343
$34
$377
As of December 31, 2025
Fair Value Measured and Recorded Using
Level 1
Level 2
Level 3
Total
Assets
Available for sale debt securities:
U.S. treasury securities
$4
$—
$—
$4
Corporate debt securities
—
36
—
36
Asset-backed securities
—
7
—
7
Total available for sale debt securities
4
43
—
47
Equity securities
19
—
—
19
Investments in unconsolidated subsidiaries
—
—
19
19
Warehouse receivables
—
1,630
—
1,630
Derivative assets
—
63
—
63
Total assets at fair value
$23
$1,736
$19
$1,778
Liabilities
Contingent consideration
—
—
65
65
Derivative liabilities
—
292
—
292
Total liabilities at fair value
$—
$292
$65
$357
Fair value measurements for our available for sale debt securities are obtained from independent pricing services
which utilize observable market data that may include quoted market prices, dealer quotes, market spreads, cash flows, the U.S.
treasury yield curve, trading levels, market consensus prepayment speeds, credit information and the instrument’s terms and
conditions.
The equity securities are generally valued at the last reported sales price on the day of valuation or, if no sales occurred
on the valuation date, at the mean of the bid and ask prices on such date. The above tables do not include $130 million related
to capital investments as of both June 30, 2026 and December 31, 2025, respectively, in certain non-public entities as they are
non-marketable equity investments accounted for under the measurement alternative, which are measured at cost, with fair
value adjustments for observable market transactions, minus impairment. These investments are included in “Other assets” in
the accompanying consolidated balance sheets.
The fair values of the warehouse receivables are primarily calculated based on locked-in purchase prices. At June 30,
2026 and December 31, 2025, all of the warehouse receivables included in the accompanying consolidated balance sheets were
either under commitment to be purchased by Freddie Mac or had confirmed forward trade commitments for the issuance and
purchase of Fannie Mae or Ginnie Mae mortgage backed securities that will be secured by the underlying loans (see Note 4 –
Warehouse Receivables & Warehouse Lines of Credit). These assets are classified as Level 2 in the fair value hierarchy as a
substantial majority of inputs are readily observable.
As of June 30, 2026 and December 31, 2025, investments in unconsolidated subsidiaries at fair value using NAV were
$406 million and $402 million, respectively, and investments at fair value using NAV which are not accounted for under the
equity method were $23 million, for both June 30, 2026 and December 31, 2025, respectively. These investments fall under the
practical expedient rules that do not require them to be included in the fair value hierarchy and as a result have been excluded
from the tables above.
The tables below present a reconciliation for assets and liabilities measured at fair value on a recurring basis using
significant unobservable inputs (Level 3) (dollars in millions):
Investment in
Unconsolidated
Subsidiaries
Contingent
Consideration (1)
Balance as of March 31, 2026
$19
$68
Net change in fair value
—
(22)
Sales / Payments
—
(12)
Balance as of June 30, 2026
$19
$34
Balance as of December 31, 2025
$19
$65
Net change in fair value
—
(19)
Sales / Payments
—
(12)
Balance as of June 30, 2026
$19
$34
________________________________________________________________________________________________________________________________________
(1)As of June 30, 2026, a Monte Carlo model was used to estimate the fair value of Contingent Consideration related to the Pearce acquisition. The
unobservable inputs used for volatility and the discount rate were 17.6% and 4.9%, respectively.
Net change in fair value, included in the table above, is reported in Net income as follows:
Category of Assets/Liabilities using Unobservable Inputs
Consolidated Financial Statements
Investments in unconsolidated subsidiaries
Equity income (loss) from unconsolidated subsidiaries
Contingent consideration (short-term)
Accounts payable and accrued expenses
Contingent consideration (long-term)
Other liabilities
FASB ASC Topic 825, “Financial Instruments,” requires disclosure of fair value information about financial
instruments, whether or not recognized in the accompanying consolidated balance sheets. Our financial instruments are as
follows:
•Cash and Cash Equivalents and Restricted Cash – These balances include cash and cash equivalents as well as
restricted cash with maturities of less than three months. The carrying amount approximates fair value due to the
short-term maturities of these instruments.
•Receivables, less Allowance for Doubtful Accounts – Due to their short-term nature, fair value approximates
carrying value.
•Warehouse Receivables – These balances are carried at fair value. The primary source of value is either a
contractual purchase commitment from Freddie Mac or a confirmed forward trade commitment for the issuance
and purchase of a Fannie Mae or Ginnie Mae MBS (see Note 4 – Warehouse Receivables & Warehouse Lines of
Credit).
•Investments in Unconsolidated Subsidiaries – A portion of these investments are carried at fair value as discussed
above. It includes our equity investment and related interests in both public and non-public entities. Our previous
ownership of common shares in Altus Power, Inc. (Altus) was considered Level 1 and was measured at fair value
using a quoted price in an active market. On April 16, 2025, Altus was acquired by a third-party and as a result we
no longer hold any shares in Altus. Certain non-controlling equity investments are considered Level 3.
•Available for Sale Debt Securities – Primarily held by our wholly-owned captive insurance company, these
investments are carried at their fair value.
•Equity Securities – Primarily held by our wholly-owned captive insurance company, these investments are carried
at their fair value.
•Derivative Assets and Liabilities – The fair value of cross-currency swaps reflects the net present value of
expected payments and receipts under the swap agreement based on the market’s expectation of future spot
foreign currency exchange rates. Additional inputs to the net present value calculation may include the contract
terms, counterparty credit risk and discount rates. These financial instruments are designated as Level 2 under the
fair value hierarchy (see Note 8 – Derivatives and Hedging Activities).
•Contingent Consideration – The fair values of contingent consideration related to business acquisitions are
estimated using Monte Carlo simulations or the probability-weighted present value of estimated future payments
resulting from the achievement levels of financial targets.
•Short-Term Borrowings – The majority of this balance represents outstanding amounts under our warehouse lines
of credit of our wholly-owned subsidiary, CBRE Capital Markets, our commercial paper program, and our
revolving credit facilities. Due to the short-term nature and/or variable interest rates of these instruments, fair
value approximates carrying value (see Note 4 – Warehouse Receivables & Warehouse Lines of Credit and
Note 10 – Long-Term Debt and Short-Term Borrowings).
•Senior Term Loans and Senior Notes – The table below presents the estimated fair value and actual carrying value
of our long-term debt (net of unamortized discount and unamortized debt issuance costs) as of June 30, 2026 and
December 31, 2025 (dollars in millions). The estimated fair value is determined based on dealers’ quotes (which
falls within Level 2 of the fair value hierarchy). The actual carrying value is presented net of unamortized debt
issuance costs and discount (see Note 10 – Long-Term Debt and Short-Term Borrowings).
Estimated Fair Value
Carrying Value
Financial instrument
June 30, 2026
December 31, 2025
June 30, 2026
December 31, 2025
Senior term loans due 2028
$1,220
$1,239
$1,263
$1,322
5.500% senior notes due 2029
510
519
498
496
4.800% senior notes due 2030
599
608
592
591
2.500% senior notes due 2031
449
454
493
493
4.900% senior notes due 2033
739
755
742
742
5.950% senior notes due 2034
1,041
1,068
978
977
5.500% senior notes due 2035
505
516
494
494
5.250% senior notes due 2036
740
—
735
—
•Notes Payable on Real Estate – As of June 30, 2026 and December 31, 2025, the carrying value of our notes
payable on real estate, net of unamortized debt issuance costs, was $405 million and $197 million, respectively.
These borrowings have either fixed interest rates or floating interest rates at spreads added to a market index.
Although it is possible that certain portions of our notes payable on real estate may have fair values that differ
from their carrying values, based on the terms of such loans as compared to current market conditions, or other
factors specific to the borrower entity, we do not believe that the fair value of our notes payable is significantly
different than their carrying value.