LOS ANGELES-Executives during CBRE Inc.'s Q1 2012 earnings conference call on April 24 reported favorable numbers: Revenue for the quarter totaled $1.35 billion (a 14% increase year over year from $1.2 million); an EBIDTA increase of 24% from the same quarter last year and net income per diluted share moving up from $40.6 million during Q1 2011 to $45.9 million during the just completed quarter. Even the selected charges of $18.9 million were viewed in a positive light, matched as they were to the ING Real Estate Investment Management acquisition, which CBRE spent much of 2011 completing.

But it wasn't all smiles among the presenting executives. Though CEO Brett White, Americas President Mike Lafitte and CFO Gil Borok said the Americas sector was performing well, they acknowledged a cooling in the European and Asia Pacific market. This led to White's prediction of continued strength in the company's outsourcing business, along with modest leasing growth, investment sales dependent on region and geographic fundamentals, and investment management services that would benefit from the ING REIM acquisition.

"The market is recovering, but at an incremental and uneven pace," White said. Even with the uneven pace, "If I'm describing a bumpy ride, and revenue's up 14% and we're still affirming guidance, I'll take that bumpy ride," White noted.

White also discussed the current competitive landscape, especially in light of BGC Partners Inc.'s recent acquisition of Grubb & Ellis Co.'s assets and the formation of its new full-service commercial real estate platform dubbed Newmark Grubb Knight Frank. The industry is consolidating into two formats, he explained: those firms focused on a global landscape and the niche, boutique firms. What about those in the middle?

"They're going away," White said. "We love that dynamic. We love it, because more of the accounts we want to do business with are turning to us for service." Expect more consolidation in the medium turn, White predicted. Lafitte, in the meantime, saw the shifting competitive landscape in terms of talent; as companies shift alliances and partnerships, he commented, "we've been able to attract talent from those experiencing distress."

This is not to suggest that CBRE is circling distressed firms, waiting to pick off talent. White said he was glad that Grubb & Ellis found a well-capitalized buyer and that some of the talent is staying put.

"It's interesting," he said. "We welcome to the dance these new players like BCG; they're sophisticated, they're smart, they're well-capitalized." From the talent perspective, he added, "having folks that want to be there and who want to put capital into the industry is a net benefit for everyone."