SWOT Analysis of CB Richard Ellis Group

CB Richard Ellis group also known as CBRE group Inc is one of most eminent name in the world commercial real estate service. CBRE is also listed in S&P 500 company list along with Fortune 500 list of huge companies in US. This company has more than 300 offices located in different locations around the globe and 34,000 employees are working with this esteemed company. The company was initially established in 1906 and presently headquarter of CBRE is located in Los Angeles, California. According to the calculations in 2011 the company has acquired huge revenue of more than $5 billion. CB Richard Ellis group offers consultation services regarding leasing or sale of any type of property and its other corporate services include mortgage banking, facilities for project management, development services, appraisal, valuation, research facilities and investment management.

Strengths

• CBRE is world most established company providing facilities regarding real estate services.

• Due to its quality service CBRE holds sturdy brand equity.

• The portfolio of company is one of strongest real estate service companies.

• The company exhibit diversified and most vigorous clientele.

• CBRE are known as global market leader in their respective industry. This position of company incurs high revenues along with higher margins, economies of scale and various other financial benefits.

• CBRE possess strong and highly skilled management and workforce for its worldwide offices.

• CBRE holds strong liquidity position financially.

• The high standard operating performance of company ensures continuous growth of company.

• Strong community presence of CBRE is ensured with its various policies such as environment sustainability policy, energy sustainability policy and other community welfare activities.

• According to the Business week list CBRE was listed as “best in class” company in 2009.

Weaknesses

• Momentous indebtedness is weak point of CBRE.

• Huge dependency of CBRE on market of US.

• Investment in local market determines the conditions of global market.

• CBRE has partial financial leverage.

• Largely dependent on US market.

Opportunities

• The tremendous growth in sector of commercial real estate in region of Latin America offers wide range of opportunity for CBRE.

• US market of housing offers opportunities for recovery for real estate companies.

• Positive prospects are prevailing in US market regarding institutional construction.

• Strategic acquisition offer more opportunities for CBRE.

• Expansion of company into new upcoming markets such as India and China.

Threats

• The volatile prices of market influence the business of real estate.

• The cost of labor keeps rising in US.

• The global financial markets remain inconsistent.

• Crisis of credit market also affect the business of real estate companies.

• The intensive competition offered by rivals like Jones Lang LaSalle, Kennedy- Wilson Holdings and House Holdings.

• The recurring industry of commercial real estate is closely related to state of macroeconomic.

• The environmental regulations also offered threats to the business of real estate.

• Global economic recession also imparts negative impact on business of real estate as it decrease buying power of clients.  

References

• Yahoo Finance. (2012). http://finance.yahoo.com/news/cbre-group-solidifies-asia-footprint-201945971.html Finance Report Published 24 September, 2012. Retrieved 28th October, 2012.

• Official website of CB Richard Ellis Group http://www.cbre.com/EN/Pages/Home.aspx. Retrieved: 28th October, 2012.

• Research and consulting by CBRE: http://www.cbre.com/EN/research/Pages/default.aspx. Retrieved: 28th October 2012.

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