The company's transactional businesses, such as capital markets and leasing, faced pressure in 2023 from fluctuating interest rates and inflation. However, as these economic factors began to stabilize in 2024, these businesses rebounded, which contributed to strong financial performance. We believe CBRE's diversified revenue streams have positioned it well to navigate future market fluctuations. We think CBRE has been growing prudently, in part from acquisitions. However, any large acquisition would expose the company to higher leverage and integration risk. The acquisitions of J&J Worldwide Services in February 2024 and full ownership of Industrious in January 2025 raised leverage but increased CBRE's size and scale in CRE services. The stable outlook reflects S&P Global Ratings' expectation that CBRE will maintain leverage
