CBRE Group, Inc.CBG has been making consistent efforts to improve its business with strategic buyouts. Quite recently, the company declared the acquisition of New York City-based Floored, Inc., which is a reputed producer of advanced technology for commercial real estate.
Notably, Floored's acquisition would offer a solid access to advanced technology to CBRE's experts and clients, and promote competencies in developing technological innovations as well. This, in turn, is likely to drive marketing and leasing of commercial properties.
Particularly, addition of Floored's SaaS (Software as a Service) solutions, including the interactive 3D graphics technology, would expand CBRE's technology tools. Experts can "configure, visualize and compare vacant space and arrange virtual tours," according to Chandra Dhandapani, CBRE's Chief Digital & Technology Officer.
Strategic in-fill acquisitions have played a vital role in widening the company's geographic coverage, as well as broadening and fortifying its service offerings. In fact, during 2015, CBRE had accomplished eight in-fill acquisitions.
Further, during the first nine months of 2016, CBRE closed two in-fill acquisitions, including the acquisition of its independent affiliate in Norway and a London-based retail property advisor that specialized in the luxury goods retail sector.
Further, in December, the company announced the buyout of Cleveland, OH-based Skye Group, which is engaged in providing retail project management, shopping center development and tenant coordination services throughout North America. This transaction will bolster CBRE's position in the U.S. retail real estate sector and is a good fit for its robust retail service line offerings.
In addition, the company opts for larger, transformational deals driven by macro policies. As market conditions continue to improve, we believe that these opportunistic acquisitions would serve as growth drivers, supplementing the company's organic growth.
Currently CBRE has a Zacks Rank # 2 (Buy). Also, shares of CBRE have outperformed the Zacks categorized Real Estate - Operations industry for the past three months. In fact, CBRE's shares have gained 14.3% against a 0.4% decline of the industry.
Investors interested in the real estate industry can also consider other favorably placed stocks like Forestar Group Inc. FOR , PennyMac Mortgage Investment Trust PMT and RE/MAX Holdings, Inc. RMAX . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Forestar Group's full-year 2016 estimates moved up significantly to $1.62 per share, over the past 60 days.
PennyMac Mortgage Investment Trust's 2016 estimates climbed 5.1%, over the past 30 days to $1.04 per share.
RE/MAX Holdings's full-year 2016 estimates inched up 1.8%, over the past 60 days, to $1.69 per share.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.