To the stage, CBRE Head of Investor Relations, Brad Burke.
All right. Good morning, everyone. Thank you. Thank you for coming out. Welcome to CBRE's 2019 Investor Day.
I would like to begin the same way we begin this every single year, which is a look at our forward looking statements legal disclosure. I'm not going to read this to you, but that does not mean that it's not important. It is on our website and if you would like to, you're welcome to go to our website and read it for yourself later today. Next up is our agenda. Just a couple of things on the agenda.
We're going to save plenty of time for Q and A at the end of today's sessions. I'd ask that you save all of your questions until the end. And the second, we're going to have some breakout sessions with some of our executives after we end our formal presentations. After we end Q and A, I will give you some instructions on how those are going to work. I would expect that we're going to end the Q and A and start our breakout sessions in about 3 hours.
Over the next few hours, we have a lot of content to go through. I think that this group will find it to be very informative and I know that we as a management team are very excited to give you an update on CBRE. So to start us off, I'd like to welcome our President and CEO, Bob Selentzik, up to the stage. Thank you, Brad.
Good morning, everyone. I am not going to make a joke about the fact that we have a column in the room again this year because Brad told me not to. But depending on how good we do this year, Brad said that next year, we're actually going to move the column all the way to the back of the room. So, maybe better. Big day for us at CBRE.
It's our first chance to talk to all of you since we reorganized the company. We announced the reorganization last August, became effective January 1. We think it's a really important step for the company. It's going to give you all some of the things you wanted about transparency into our business, and we'll talk a lot about that here today. In my comments at the start here, I'm going to give you a little bit on our sector, some of which you've heard me talk about before, but a couple of things that are new that I think we ought to focus on to put CBRE and our opportunity in perspective.
I'll give you a bit on what I think makes our position within the sector compelling and then some comments on the reorganization, why we did it. I know you know of the reason we did it was for transparency that you wanted, but there were some other things going on there and what we think we'll get out of it. So the sector we compete in, commercial real estate, we've talked a lot about the first three things I'm going to comment on. Occupier out outsourcing being a secular long term growth driver. Occupiers continue to outsource services to companies like CBRE, especially CBRE that they used to do themselves.
This trend is going to continue for a long time. Bill Concannon will talk to you about that. Secondly, institutional capital continues to flow into commercial real estate. It's a much more accepted asset class than it used to be. The base of assets is growing around the world.
I'm going to comment on one specific element of that asset class. And that's good news for us because when institutions own commercial real estate, they ask us to do work for them and that trend is also continuing. 3rd, the industry is consolidating. The companies in the industry are consolidating. We're participating in that through our M and A program, but the talent in the industry is also consolidating, trying to find the best platform, the best brands to be part of.
You'll hear Lynn Williams talk to you today. She was part of that coming to CBRE. The other thing that's consolidating is the clients. They want fewer companies to do more work for them. It's not just that we have an outsourcing trend.
It's not just that we have a trend with capital moving institutional capital moving into commercial real estate. Both of those groups of clients want to work with fewer providers. That's really good news for us, and I'm going to talk a little bit more about that. There's 2 other things going on that we really haven't shined the bright lights on before that I think are really important as you think about our company. Number 1, the secular changes going on around the use in office space.
I'm going to hit that in a little more detail. And number 2, the secular changes that have been going on with single family home occupants moving into multifamily for lease space. Both of those things are a big deal for our sector and both of those things are a really big deal for our company and I'll tell you why. So, let's talk about the evolution and the use of office space. There's a couple of things going on there.
Number 1, this whole experience dynamic that we're hearing so much about. This is the notion of office occupiers, mostly corporations, but others as well, using office space in the war for talent, to attract talent, to retain talent, to make talent more productive, to make talent happier, all those things that are going on, we're doing it ourselves all over the world. We're changing our use of office space to attract millennials and others and make them more productive. We're seeing things happening as a result of that and we're playing to that circumstance quite well. The second big dynamic in the use of office space, and you're all familiar with this one, is the whole agile, flexible space circumstance going on that underpins co working, that underpins WeWork and Convene where we are today and others in the space.
Both of those things together, the office space experience circumstance that's become so prominent and this flexible space, agile space dynamic, which we believe today accounts for about 1% to 2% of the base of multi tenant office space around the world, and we think it's going to grow to 5% to 10%. Those two things combined, the experience and the agile circumstance, are really having a profound impact on the office building business around the world. It is having a profound impact on leasing. We had a great Q4. We had a great 2018.
We've had a great run-in leasing. Part of that is us doing a really good job. But part of that is a market circumstance that we haven't seen before that's driving our business, and that's really good news for us. We manage office space today around the world with 9,000,000 people in it, 9,000,000 people in it. So, read the latest numbers on WeWork.
That's 15 to 20 times as many people as they have in their space. We are doing a lot to address this office experience circumstance. You're going to hear about that when Mike Lafitte talks about our host offering in office buildings for both occupiers and landlords. We have an advisory and transaction services business that we've embedded with a lot of capability to help office clients in this area. Lynn Williams is going to talk about some of the things we're doing in that area.
And then you know we now have an entrant into the flexible space arena and Danny Queenan when he hits our real estate investment business will talk to you about that. So, a bunch going on in the office space arena that is really helping our business and is going to continue to help our business. Now let's talk about the multifamily product type. There has been a move, a very well known move from single family homes to multifamily homes. And it's been big and it's been going on for many years now, the last 7 or 8 years since the financial crisis.
This is really good news for CBRE, and I'll tell you why. We don't play in the single family market. That is not what we do. But we are a big developer in the multifamily market. Trammell Crow Company is the biggest commercial developer in the U.
S. Today and development of multifamily properties is a commercial real estate enterprise and that is 25% to 30% of our development business today. You've seen our numbers in development. Multifamily is having a big impact on that. We're the industry leading financer and seller of multifamily properties.
We have a really big business in that area. A lot of times we get asked, what's going on with your sales numbers? Why are they so good? Why did they disconnect from RCA, etcetera? Well, a big part of that is our multifamily business.
That's been a spectacular driver for us. We think this is a secular trend. We think it's enduring And we think it's going to move beyond the United States, and it's really going to help our company on a long term basis. So, we have this outsourcing trend, this trend with capital moving into commercial real estate, the consolidation going on in your industry, but we have a space use change in both office space and multifamily that is really helping our company. So what's CBRE's position with all this going on?
How do you characterize this? Well, I think and we've talked about this a lot, I think our scale, our brand and our ability to invest plays well to all those trends, particularly the consolidation, particularly to the move with occupiers to account based business and investors to account based business. Really big deal, our scale, our brand and our ability to invest. There's something else about our company that we're trying to get the investors in this space to understand. We're trying to get the analysts that follow us to understand.
We have invested in a management team like nobody else in this sector has ever invested, professional managers and leaders, line of business managers, geographic managers and leaders, functional leaders like digital and technology, you'll see Chandra up here today. We've invested heavily in that. We work hard to develop that team. We have separated from the pack as it relates to that team, and you'll see them on display here today. So you say, wow, that's a big investment.
Isn't that costly? Isn't that expensive? Well, I would argue it's not expensive. The fact of the matter is you can't extract economies of scale without professional managers, without professional leaders. The fact that we're over investing in that part of our business allows us to extract economies of scale.
It allows us to manage our costs effectively, run our business efficiently. It allows us to recruit and retain. Everybody in the industry knows brokers don't recruit brokers. Everybody in the industry knows that brokers that are mainly brokers and working part time as player coaches can't run efficient operations. We don't do that.
This is a really important part of our business. You can't run an M and A program around the world without professional leaders, professional managers, and that's helped us do 100 M and A deals. It's changed our business over the last decade. So, this is something I want you to understand about our business. This goes beyond our scale and our brand and our ability to invest in the talented market facing professionals we have.
It's this leadership team we've built. And with that in mind, I'm going to comment on the reorganization we did. The reorganization was meant to do a number of things, but more than anything else, it was meant to take further advantage of this leadership team we've built. So, I'm going to hit on 6 things that we wanted to get out of the reorganization. Number 1, we had some really, really good leaders in this business that we want to deliberate to do more for our company, some of the sector's very best leaders that we've elevated in a big time way.
We wanted clearer, cleaner, crisper lines of authority because we thought that would lead to greater accountability. And when you have greater accountability, you get better outcomes. Really big deal in the reorganization. A lot of focus on our lines of business. Those are our products.
Our strategy is all about delivering things to our clients. They can't get anywhere else. We're only going to do that if our lines of business are different, and this reorganization was about bringing real power to those lines of business. We expect to see a lot of that. Investment focus.
We have a lot of capital to invest. We're going to have 1,000,000,000 of dollars to capital of capital to invest over the next few years, and we want to do that really, really well. We've done it well. We want to do it better than it's ever been done in the sector before. The reorganization is going to allow Jim Grosch, our lead investor, the lead investor in the industry in my mind, to focus full time on investing our $1,000,000,000 of capital.
Operating cost and efficiency, we've done a good job with our margins. We want the reorganization and the team we put in place now to extract better operating efficiencies, better cost efficiencies out of this business. And we're already seeing and it's apparent in the budget we've established this year. It's apparent in the 1st 2 months of this year. That's going to happen.
And then the last thing we wanted was about the people in this room. Forever when we go on roadshows, Jim and I and Brad have heard, gosh, you guys have invested 1,000,000,000 in your outsourcing business. You've featured it over and over and over. You've talked about this secular trend, but we're not getting the facts on it. Well, you're going to get the facts on it.
And you're going to get the top line and you're going to get the bottom line and you're going to understand about our sales backlog. You're going to get great transparency into that business starting here today and we think that's really good for our investors. We think that's really good for the analyst community, and we really hope that everybody else in the sector eventually comes this way because we think that will shine a very positive light on CBRE. So, I'm going to turn the floor over to Jim in a minute. But before I do that, I'm going to give you just a couple snippets on our numbers.
I suspect most of you have seen the press release. If we do, what we said in our guidance this morning, if we hit the midpoint of that range, our adjusted EPS will be about $3.60 a share. That adjusted EPS would be the 10th straight year of double digit growth in EPS, and we're very feeling very good about getting that done. Our GWS business, which again, you're going to get a lot of transparency into now, we expect that to grow well into the double digit range on the top line and even more on the bottom line, strong operating leverage in that business. Our advisory business, we expect near double digit growth in EBITDA.
That is not about a market growing at a double digit rate. That is about us doing a great job with cost control and taking market share. In our combined services business, that's the GWS business plus the advisory business, we expect to have operating leverage. In a year where we're to continue to invest heavily to differentiate our lines of business, differentiate our products. So, we think that our outlook for this year is very strong, reflective of this reorganization, reflective of our ability to take market share, and we're very excited.
Now I'm going to ask Jim to come up and give you more detail on our numbers. Jim, as you come up here, I want to mention what I've already commented on. Jim is going to he's been double heading as our CFO and our Chief Investment Officer. He's going to move over and do a full time job of investing our capital, which is going to be very powerful. And thanks for all the great things you've done as a CFO, Jim.
Thank you.
Good morning, everyone. Thank you, Bob, for the introduction. Bob described how our strategic priorities in reorganization are positioning the company for growth. I'm going to review our performance over time, describe our 3 new segments, walk you through our expectations in detail for 2019, and then discuss opportunities to invest our capital. As you can see on this slide, CBRE has consistently and materially outperformed the S and P 500.
For each of the last 9 consecutive we've had double digit growth, as Bob said, for each of the last 9 consecutive years. And according to FactSet, there are only 12 other companies in the S and P 500 that have achieved this record. Our EPS growth more than tripled the growth of the S and P 500 over the last 6 years. Consistent with this outperformance, if we achieve the midpoint of our guidance for this calendar year, we will more than double the expectations for the S and P 500, which is 4.5% EPS growth this year. Our historical outperformance for CS and P has not been achieved by leveraging up the company.
In fact, in 2012, CBRE had about twice the leverage of the average company in the S and P 500 and today we have less than half. We've achieved this strong growth while also positioning our business mix, really repositioning our business mix to grow faster and be more resilient in a downturn. If we look back to 2,006, a peak year in the industry in a period that includes the great financial crisis, CBRE has grown non contractual fee revenue at a 6% compounded annual rate over the last 12 years. Contractual fee revenue during this period has grown at an 18% compounded annual growth rate over this 12 year period. And that's taken the contractual component of our business from 19% in 2,006 to what we expect to be 47% of a much, much larger company in 2019.
Our business mix has shifted to more contractual revenue every year. We had a nice 7% pickup in this ratio between 14% 2016%, benefiting from our acquisition of GWS in September of 2015. Most of the growth since then has been organic. So how has the business mix change impacted our margins over the last 5 years? Adjusted EBITDA margins have been relatively stable over this period, despite the shift in business mix to more contractual and faster growing, but lower margin businesses.
And adjusted net income margins have improved significantly as we've deleveraged the firm and reduced our tax rate. We've also been very careful and conservative around adjustments to EBITDA and net income. Despite considerable M and A, periods of significant cost cutting and our current reorganization, 40% of the quarters during the last 5 years, we had 0 cash adjustments to our income. Now I'm going to describe our 3 new global segments. I'm going to spend a few minutes on this slide because there's a lot of information here to absorb.
Bob talked about our reorganization and what it will do for us. The three columns on this slide represent our 2018 actual numbers restated in our new global segments, and this is how we'll be reporting going forward. We also want you to be able to compare our go forward performance to our competitor set and to our own experience our own performance in prior years. So we'll be giving you regional supplemental disclosure that's very similar to what you've received in the past. Fee fee revenue and EBITDA in the three segments at the top of each column.
The advisory column on the left makes up our traditional real estate services business run by Michael Feit, CEO of that business. The Global Workplace Solutions business, our outsourcing business is primarily facility management, project management and a bit of leasing revenues that's run by Bill Concannon, our CEO of that business and our real estate investment businesses, which includes our development business, our investment management business and our relatively new HANA business run by Danny Queenan. Dark green boxes in each of these three columns. These boxes represent they signify our more contractual, more recurring businesses, which we expect to total 47 percent of 2019 fee revenue. The light green box is leasing.
We don't refer to leasing as part of our contractual businesses, but we do talk about it being largely recurring over time. And the reason we do that is to prompt questions to make sure that people understand this business and the quality and importance of this business. In a downturn, you will have some deferred activity in leasing, but it snaps back relatively quickly. So during the great financial crisis in the U. S, leasing was down 15% in 2008, 15% in 2009, up 30% in 2010.
Over time, this is a high quality income stream that is in fact largely recurring. If you take the contractual components of our business and leasing together, it should exceed 75% of total fee revenue in 2019. The blue sections designate our more cyclically sensitive businesses and that includes sales, mortgage origination, gains from mortgage originations, development and carried interests. These are great businesses. They're high margin.
They're highly synergistic. They produce a lot of earnings year over year for our company, but they're more cyclically sensitive. The total for the blue businesses or the businesses designated in blue should be a little less than 25% of our fee revenue in 2019 and about a third of our EBITDA. All of the lines of business in each of these segments have a couple of things in common. They provide services to or investments in commercial real estate.
Also, virtually all of the lines lead globally in the service they provide. There is considerable synergy within each of these segments. There's also considerable synergy between the segments. Together, these three segments and the lines of businesses within the segments combine to form a business with a very strong competitive moat and real competitive advantage. Now let's shift to our expectations for 2019 for the company overall and for each segment.
We anticipate another strong year of revenue growth in our advisory business with EBITDA growing slightly faster than revenue. We expect the economy to remain strong even if it's a little bit slower in growth than in 2018. In this environment, we expect leasing to grow in the high single digits, capital markets to increase in the low single digits, barring any capital markets disruptions and gains recognized for mortgage servicing rights to decline modestly. This slide covers our global workplace solutions, our outsourcing business. We are extremely pleased to be providing for the first time a clear view of the profitability and the performance in this business.
We're expecting 10% to 13% fee revenue growth in 2019 as we enter the year with some major client wins in 2018 and a strong pipeline. Our business is also becoming more and more differentiated every year. Our acquisition of FacilitySource in June is an example of how we're driving growth by expanding and integrating our capabilities to serve clients. We also expect healthy margin expansion in 2019. This is driven by cost leverage and by the completion of multiyear systems integrations and upgrades.
And we continue to expect double digit annual growth in this business for as far out as we can see. Moving to our Real Estate Investment segment. As we mentioned on our Q4 earnings call, development EBITDA in 2019 should be closer to 2017 levels. 2017 was a record year for the company in our Development Services business until it was beaten by 2018, but it's 2017 and now 2019 still represent very strong profitability. In addition, our in process development is at an all time high of $9,000,000,000 in this business, and there's a strong pipeline behind that.
This is a great indicator for growth and profitability in the next couple of years. The investment management business should improve nicely from a tough year in 2018. Approximately $12,000,000 of one time costs in this business, which were not normalized in 2018 should not repeat in 2019. In addition, we made investments in new products and teams in late 2018 that impacted the numbers, should be a little bit more neutral and impact in 2019 and start to provide incremental growth in 2020. We're also including our new Hana business, which Danny will talk about, but we're expecting a loss of $15,000,000 to $30,000,000 from this business in 2019, depending mainly on kind of the pace of the ramp up in that business.
On this slide, you can see how the guidance I just outlined for each segment bridges 2018 actual EPS to the 3.60 midpoint of our guidance for 2019. The area that I did not cover on the previous slides, they are the below the line items. We expect increased depreciation and amortization expense to be more than offset by lower net interest expense and a stable but slightly lower tax rate in 2019. In addition, our recent share repurchase will more than offset new shares issued in 2019, which will result in lower weighted average shares outstanding during 2019. Absent the decline in development and the incremental loss from our new Hana project, EPS forecast for 2019 would have been up about 15%.
We understand that investors value transparency. You can see that we're providing a greater level of transparency into our expectations than ever before. For those of you who are building your own models, we've outlined every guidance metric in one place along with the corresponding 2018 numbers and you can reference back to this. We want to make it as easy as possible for investors in our company to transition with us to the old from the old structure to our new segments. So I'm going to close out my discussion by reviewing our thoughts on allocating and investing capital.
This will be my primary focus after I transition my other duties to a new CFO. I'll start with a slide that we presented last year to emphasize how we and our board continue to think about leverage, which impacts our view on investment capacity and capital allocation. Of course, no one knows how long this cycle will go, but we're probably not going out on a limb to say that we're in the last third of this cycle. Simply stated, we have a bias to low leverage later in the years in an economic cycle. We're equally biased to higher leverage in a downturn in the 1st few years thereafter.
And in all cases, we will always maintain very high liquidity. Our leverage ended the year with net debt equaling 0.6x2018 EBITDA, adjusted EBITDA. On Monday, we closed a refresh of our $2,800,000,000 revolver and $300,000,000 U. S. Term loan that extends that out for a fresh 5 year term expiring in 2024.
Our strong performance over the last several years generated over $9,000,000,000 of EBITDA, along with active management of our balance sheet has put us in a position to deploy a large amount of capital and to potentially deploy that capital disproportionately at times when capital is scarce. We see 3 main areas to deploy our capital, and I'll walk you through those areas on the
next few slides. We still
expect M and A to represent the best risk adjusted use of capital over the long term. When large deals become available, CBRE has an advantage position to compete and to win and to do so without overpaying. We weigh M and A carefully against share repurchases. In December January, we saw share repurchase as the best use of our capital and put over $200,000,000 to work at an average price of $40.20 a share, about 20% below where the stock is trading today. Last week, our Board approved a new $300,000,000 program to position us for future opportunistic share repurchases.
Our Investment Management and Development businesses offer unique opportunity for incremental capital investment with great risk adjusted returns. This is especially the case in the early years coming out of a downturn. Finally, absent the ability to use capital in the ways outlined above, if leverage average leverage approaches 0, we will prioritize returning capital to shareholders. Here you see a familiar chart showing our role in the industry in the long term consolidation of our real estate services sector. Since 2006, we've completed approximately 135 acquisitions and 11 equity investments in other companies.
We are very disciplined about what we pursue. Over this period, we have pursued and won 5 of the 12 major transactions that took place in our industry. We did not bid on the other 7. In June, our acquisition of FacilitySource was an off market acquisition following over 2 years of intensive study of this space and every company in this space. And that was a team effort with our corporate development group, our business leaders on Bill's team and our digital and technology leadership with Chandra and her team.
We are usually the buyer of choice for a seller. So why is this? We have a highly experienced corporate development team. Our team can act with confidence without outside advisors and enjoys the support
of our Board. We can be creative.
We've not had a financing contingency in any acquisition, including our largest acquisitions. Most of the senior executives at CBRE, most of us came to CBRE through acquisitions. So we're very familiar with how it feels to be in the sell side. These are service businesses, usually the people that are selling the companies or the people that have built the companies. We know how it feels to be in their shoes and we welcome and appreciate talent and management talent in particular.
We typically have the greatest opportunity for synergies. We have a very long track record of doing what we say we're going to do and not retrading deals. For these reasons, we are the buyer of choice for sellers and this creates real advantage for CBRE. On this slide, we'll discuss the opportunities to invest in our real estate businesses. In Trammell Crow, we own the number one real estate developer in the U.
S. With $9,000,000,000 of projects in process and a pipeline behind that. Global Investors is one of the top five investment managers in the world in real estate with over $105,000,000,000 of assets under management. Hana is a new business where we will focus on investing in aligned structures with our customers who own the buildings. We have large existing relationships with these customers.
They're important customers and our strategy is aligned with their interests. We typically invest in the form of co investments. Historically, our mindset was to use the lowest possible amount of capital required to facilitate the transaction and achieve a healthy promoted interest in a fund or an individual asset deal. As we've deleveraged, we've also been more recently investing capital in special situations where we've created a particularly attractive risk adjusted opportunity and we'll be doing more of that over time. We're positioned to invest considerably more in these kinds of opportunities, especially in the downturn and in the years following the downturn.
And those kinds of investments will not only provide extremely high returns, but they have a multiplier effect on how they impact our services businesses and our other businesses. For the last 5 years, as Bob said, I've had the dual role of Officer and Chief Investment Officer overseeing all of our M and A and other investment activities. Our investment grade balance sheet, we've built up excellent leadership in our finance, treasury, tax, accounting, investor relations teams. Our investment grade balance sheet is in great shape with $3,000,000,000 of liquidity and 0 debt maturities for the next 5 years. In fact, we should have over $7,000,000,000 to invest over the next 5 years.
And I'm very much looking forward to reallocating my time in this direction. Once we have a new CFO in place, I'll be focusing the majority of my time seeking and vetting investment opportunities with a real long term view to maximizing shareholder value. And now I'll invite Chandra Dandapani up to the stage. Chandra has played a pivotal role in our company in the last few years, transforming our technology platforms to position us to continue to grow. We've done a number of fun projects together.
Thank you, Chandra.
Thank you, Tim.
It's great to be here today with all of you. We are now in our over 2 years into our digital transformation journey at CBRE, and I'd love to share with you some key highlights of that transformation. About 2.5 years in, the most notable accomplishment within digital and technology from my perspective is assembling a world class digital and tech leadership team. As you can see, these leaders, they came from financial services, startups or the tech industry. Every one of them started off as software engineers, hardware engineers or quantitative specialists and have grown in the career as experienced technology leaders to be able to find real leverage points in a business in terms of data and technology.
I'm immensely proud of this team and they're doing some amazing work with our professionals and our clients. As you all know, A players recruit other A players. So the leadership team that I shared with you, they have put together about 100 plus agile teams across the company. The tech companies call them 2 pizza teams, the teams that are sized just right to have lunch with 2 pizzas. And agile in the sense that these teams can develop software in 2 weeks sprints, not in months years, but in 2 weeks sprints.
How did we build these teams? We talk a lot in the industry about bringing technology to real estate. At CBRE, we believe that to bring technology to real estate, you need real technologists within the company. So we wanted to make sure that we went and hired the best and brightest of digital talent. So we did that through a talent brand called CBRE Build and really bringing real estate to technologists.
And we did that by participating on campus recruitment, whether it's at UT Austin or Princeton or major campuses, as well as recruiting women engineers from Grace Hopper Conference, which as many of you know, is the largest conference for women in computing in the world. So importantly, these teams are working directly with our professionals and our clients to add value to solve their problems and build new technology capabilities. I don't have to tell you this, our industry is going digital like never before. What we see happening is a confluence of 3 categories of trends playing out in our industry. Number 1, there are new models coming up.
Bob touched upon flexible spaces, experience services becoming a big important thing for our occupier and investor clients. Smart buildings have been around for a long time, but with all the 4 gs and with 5 gs around the corner, smart buildings are becoming more interesting and more of a thing. And of course, there are a lot of online brokerages and listing platforms that are starting to crop up. At the same time, we see an increase in technology spending from our competitors. There is an increasing number of startups coming into our industry.
And interestingly, many mainstream VCs are now investing in commercial real estate and so are family offices. Now these two sets of trends are unique to our industry. At the same time though you see broad technology trends playing out, whether it is machine learning, artificial intelligence, robotic process automation or autonomous vehicles. There's a lot of things happening in the technology space. What's exciting for us is the confluence of these trends coming together to impact our industry.
So for us, we needed to know what do we do. We wanted to make sure that we are positioning CBRE for a transformation into the future. And our strategy has led to a substantial transformation within the company over the past 24 months. As I mentioned, the first thing we did is we decided to bring in some great talent in house. Top talent remains a priority for the company overall.
100% of our software delivery is now agile, where we can rapidly iterate prototype with our clients and our professionals. We significantly focused on user experience with our products internal to the company, so that our professionals can embrace technology with ease and we carefully measure how which platforms they use and how they are using them. We made a small number of key acquisitions. The first one that I was involved in after joining CBRE was Flow and most recent one was Romonet, which was which is in the data center management software space. We modernized our infrastructure.
We embrace the public cloud. We moved to open source and for software development. And in this day and age, needless to say, we are focused heavily on cybersecurity. So with all of these, our clients are increasingly under pressure from their constituents to deploy technology to use data better. And so, it's fascinating for us to watch our clients when they come to CBRE and when we interact with them, initially there's some skepticism about CBRE being able to provide technology capabilities.
We are a real estate services company, right? But once they interact with our software engineers and they see this blend of commercial real estate expertise and technology expertise coming together, they are absolutely in. I'm a big believer in the concept of design thinking, really addressing, understanding clients' needs, working with them and iterating to problem solve the best way we can. And we launched a significant digital strategy exercise that I believe I've shared with you all in the past to study every line of business, identify where we have opportunities for growth and where we can leverage data and technology. So coming out of all of that, as you can see in the past 12 months, we've announced 3 major moves from the company perspective.
Host, which is an experienced platform and services in our industry for both occupier and investor clients flexible spaces, HANA that Danny will be covering in more detail and our tech enabled aggregator acquisition that we made with FacilitySource. So the key thing here is, these are all examples of looking around the corner, making sure we can look at where we think the industry is going, where our clients' emerging needs are and making sure footed moves from an investment perspective, from a technology perspective to be able to meet those emerging needs of our clients. We are investing in enabling technologies both for our professionals and our clients. In fact, this chart shows you the percentage of our total spend on running the factory versus enablement. You could look at this and say, in many ways, this is probably reflective of what's happening in the industry.
No longer is the industry just focused on technology as a back office function or running the engine or keeping the lights on. And at CBRE, we have conclusively increased our proportion of spend on enablement. And the most important point is the way we have done that is by changing the way we work, by bringing in great talent, by embracing the public cloud where we don't have to write big checks for data centers or software or hardware licenses, not software. And also by increasing our investment marginally in technology. But the key thing is we have changed the way we work to use the capital, the way we work, the way we build technology much more efficiently.
Oftentimes I'm asked how do you know what we are investing in is appropriate and whether it makes sense and are we getting the ROI for our investments. And really if you think about it, technology is getting so embedded in the things that we do that there are 2 major measures that I look at, which is how is our client NPS? Are we meeting our clients' needs? And by the way, are our professionals winning more often than not? So higher win rates and NPS, in my mind, are 2 clear indicators when technology gets embedded in the way we do our There are companies that may There are companies that may say we'll build software and everything becomes software.
I actually think the combination of bringing software and services together in a meaningful way propelled by data as a key underpinning is where our future lies. We launched CBRE 360 as our 1st generation experience platform in January of last year. And now in the 2nd generation, we relaunched it this year as host. And even as we speak, we're working on the next version of it that we expect to launch this summer, version 3.0. This is a patent pending true platform as a service.
It's not just a mobile app. God knows there are lots of mobile apps around. This is an enterprise grade platform as a service and the response from our clients has just been phenomenal. We now have over 80 plus client opportunities that we are pursuing. And by the way, all of which have recurring annual software as a sales revenue.
Another example of software plus services is what we have now internally as CBRE Quantum, which is a data center management software platform. This is now in its 1st generation. Many of you may know that we have a growing data center management business. Again, this helps us connect with building controls, being able to perform analytics and be able to optimize how we manage our data centers. Having spent 17 years at Capital One, I'm a big believer in data as a differentiator.
And so in CBRE, when I joined CBRE, there's a lot of data we have. So the first thing we started doing is just starting to manage the data and connect the dots across the data that we have in the company. And I'm pleased to say that about 2 years in, we have a rich verified dataset, verified through our professionals, verified through our research team. For example, we have over 1,300,000 plus lease comps that we have access to. We have about 500 plus attributes on every property that we touch.
And interestingly, by simply connecting the data across multiple systems in the occupier space, we can provide our clients with easy insights, dashboards into how their portfolios are performing. I have to tell you both among our clients and within our company, the data platform, the data capabilities we've built seem to be the most popular today. And I believe we are just scratching the surface in terms of the potential that exists in terms of our data going forward. I would say 2 plus years in, I'm really happy to share with you that our company is starting to embrace technology in the way we go to market, completely embedded in the services that we provide to our clients. We have a fantastic team in place and in line with the new company structure, the digital and technology team is global.
We like to say internally, globally connected, locally empowered, so that we can be nimble in the local markets, but stay connected in terms of our investments, so that we do not have 10 of the same thing in the company. We keep a close eye on where the world is going and our digital strategy guides the investments that we make in technology. And we see tremendous opportunity to leverage data for our clients. The key thing is we now have enterprise grade capabilities that our clients are increasingly gravitating towards. And you think of CBRE in the past we are and we continue to be known as great for commercial real estate services.
I believe we are increasingly embedding software and data along with our services and that's a great powerful combination. You don't just have to take my word for it. I want to share with you a quick video. And play the video.
CBRE is
Microsoft CEO, Satya Nadella, talking about CBRE and CBRE 360, our tenant experience platform. And the key thing is, as you all know, there is a high bar for when Satya includes a software platform in his keynote. I'm proud to say that this platform was built by CBRE engineers working closely with Microsoft on their Azure platform. And like I said, we are now in version 2.0 and the demand for this has been fantastic. I want to close by saying we are on a transformation journey.
I believe our differentiation is being able to seamlessly embed software and services together with data as a key underpinning in the way we service our clients and building these capabilities in a very thoughtful way by both listening to our clients, observing their needs and listening to what they are looking to do for their constituents in the way we service them. So with that, I'm now going to turn it over to my friend, Danny Quinnan, who is the CEO of our Real Estate Investments Business. Thank you.
Thank you very much, Chandra. We're so lucky to have Chandra as a part of our team. Hopefully that's obvious to you. Hello, my name is Danny Quinnen. The Real Estate Investments segment consists of 3 businesses, and I look forward to talking to you about them today.
CBRE Global Investors is our real asset investment management business, and it is among the very top managers globally. Trammell Crow Company is our development business and it has been the leading U. S. Commercial real estate developer for several years in a row now. Hana is one of Seabury's newest businesses recently launched last fall.
Hano will offer an agile, flexible space solution for owners and occupiers of real estate. As you can see with the arrow and the services listed on the right hand side of this screen, each of these businesses is a heavy user of CBRE services. Using these services, while not mandatory, is a real and recognized advantage for these businesses and therefore our clients. Today, I'd like to take you a bit deeper into each of these businesses with a focus on growth. This slide hits on some of the main impacts of CBRE's reorganization pertaining to the Real Estate Investments segment.
It is important for you to know that Seabury Global Investors, Trammell Crow Company and Hana are and will stay separate brands within the REI segment. These companies do and will collaborate when possible and appropriate. This reorganization gives us additional opportunities to focus on talent and have our best leaders and our best investors ascend. Regarding efficiency, as the CEO of the Real Estate Investment segment, I work closely with 1 COO and 1 CFO to oversee all three businesses. This is effective in terms of driving for increased accountability and to find additional collaboration opportunities within the three businesses.
Now, I'd like to dive a bit deeper into each of the three businesses within the Real Estate Investment segment. At over $100,000,000,000 of assets under management, Seabury Global Investors is in the top 5 on lists of real estate managers. There are 3 attributes on this page that make Global Investors unique. First, it's global. This is a global business with global capital raising, global execution capabilities in the Americas, EVA and Asia Pacific.
2nd, longevity. Seabury Global Investors has been establishing a track record now for over 46 years. 3rd, breadth of product. Global Investors is a provider of real asset solutions for clients offering direct private real estate, listed securities opportunities and infrastructure opportunities. The final thing that I will mention on this page is that despite our reputation as primarily a core, core plus strategist, we now have strong enhanced return funds in each region and not just the United States.
Everything in our business starts with capital raising, which then leads to deployment of that capital and then investment performance on that capital. If you do well in those things, it usually leads to more capital raising. Capital has been flowing to global investors, raising $10,900,000,000 last year as a result of these things. We have talented professionals who have executed on existing products, thus establishing investment performance and track record. Next, clients have been attracted to this performance, attracted to our existing products, the new products we're offering, as well as our platform, and that includes CBRE services that I mentioned on
the first slide. More
specifically related to the capital raising, we're very pleased with the 2018 raise for global separate accounts, which was almost 6,000,000,000 dollars for our global and regional core funds, which was almost $3,000,000,000 and we expect to build on this momentum in 2019. In 2019, we expect additional capital raise to come to our core funds, but also a significant increase coming to our regional enhanced return funds. The fact that we have recently launched enhanced return funds in all three regions bodes well for us in terms of having carry and incentive opportunities coming on top of those recurring fees when the closed funds realize. Those funds are great examples of CBRE's strength in terms of putting capital in as a co investor alongside our investor clients. This makes our commitment authenticated, it gives confidence in the overall fund, it creates alignment with our clients and it helps capital raising.
Finishing the discussion on the investment management business, I'd like to make a point about our historical asset under management growth. Over the last 5 years, we've had some real successes that have been muted by some challenges. I'm not suggesting that we ignore these challenges, but I do think that it matters to understand the historical aspects and the context of our AUM growth story. The intent of this slide is to show you three things that establish the current $105,000,000,000 of AUM. Number 1, we have worked through significant wind downs of products that were not performing, were not at scale or were overlapping with other products.
By wind down, I'm referring to products that we have chosen to get out of or to shut down for whatever reason, but most often the reason was strategic. 2nd, our listed securities business has experienced significant net outflows. The primary reason for this is the general movement by investors from active to passive strategies. 3rd, and offsetting this more positively, our primary priority programs have grown by $40,000,000,000 This is important growth because it's the right kinds of products, meaning solid fees and incentive potential on top of the recurring EBITDA, and it also is serving a new and existing client base. We intend to keep this up to remain focused on a detailed strategic plan for our priority programs and drive more growth.
I'd now like to tell you about the 2nd business within the Real Estate Investment segment. Trammell Crow Company is our top ranked development company. We develop here in the United States with offices in 16 cities that have been attractive for capital and for development opportunities. The company develops projects utilizing majority co investment coming from our partners and many of them are shown here with the logos at the bottom of the And then CBRE's capital co invests alongside those partners. It develops multiple product types, but the 3 main product types for Trammichrome are office, industrial, and as Bob mentioned, multifamily residential.
It currently has $9,000,000,000 of projects in process with a healthy pipeline following it. Trammell Crow Company has had an exceptional run-in this cycle, producing exceptional investment returns for our partners and for CBRE. As Jim mentioned, Trammelcro is expected to decline this year in terms of EBITDA, but it's coming off of a clear record year in 2018. In 2019, it's still expected to be almost any other year but 2018. And as Jim mentioned, we then expect growth at Trammell Crow Company beyond 2019.
I'd like to touch just a bit more on some of those investment returns that I was referencing. This chart shows the returns to our partners for Trammell Crow Company tied back to the year that we bought the land. This is the best way to show the full return from the moment that we buy the land to the moment that we sell a stabilized asset. These returns are net of costs, fees and promotes paid to Trammell Crow Company. As you can see from these numbers, our partners are very pleased with these returns on or around or beating 30%.
These kinds of returns have made it quite easy for us to raise capital for our development projects, especially with repeat clients. The 3rd business in the segment that you've heard about today is Hana, which we were excited to launch last fall. There is company wide interest in HANA as it is more than just a response to a global phenomenon. HANA is a substantial opportunity for CBRE and as with other things that we commit to, we intend to be a leader in the space. An occupier's desire and need for high quality, well located and flexible space is a phenomenon that is here and we think will grow from here.
The market is anticipated to grow from 1% of office space today to as much as 5% to 10% of office space a decade from now, and a lot of that need will come from larger enterprise occupiers. By enterprise occupiers, I'm referring to larger and growing companies with 200 employees or more in multiple cities. It's clear to us, given our deep owner and occupier relationships, that occupiers have this need as a part of their real estate strategy and owners are working to accommodate this particular need. CBRE stands in an excellent position with occupiers, with owners and as an owner to capitalize on the trend with Hana. Again, Hana originated with our capital partners, with our owner relationships, with our occupier relationships and from those discussions.
We were listening closely to what they want, what they need and what they expect, especially compared to other competitive offerings. Hana is the response to those clients and it's also our view of the market opportunity, which again is with sophisticated owners and with enterprise occupiers. So what is Hana? A breakdown of Hana is on the left, but in simple terms, we're building Hana to accommodate enterprise or larger occupier clients in great locations with the quality and attributes that they expect. Hana team is the area of the Hana for larger teams and where a company wants control over a space and wants its own branded space.
Because we aim for enterprise clients that are larger, that's why we plan to have 75 percent of a Hana space dedicated to Hana team. Hana Meet is an area for conferences or larger meeting space where food and beverages are more easily offered, a lot like the space that we're in today. The smallest area will be Hana share, and that is the more traditional co working space. This is typically where you would find your one off person, a salesperson, someone that's a part of a startup, perhaps a monthly subscriber or someone from the Hana team space that wants to come out to a more open area and get out of the branded space. Economically, we definitely realize that those of you in the room would like to know how to fit Hana into your own spreadsheet analysis.
So keeping in mind that this is a new initiative and things are subject to change very high level. We expect attractive returns for the capital invested to get Hana going strong. To get those returns, we have to invest to get to the breakeven point before we can get to the accretion and to the profitability, and we expect that to happen within the 12th to 18th month of each particular unit. You have seen the valuations on the startups in this space and you see the valuations that they're getting. We are very confident that we can build this business for a fraction of what it would cost to buy into it.
We expect Hana to be a mixture of leases, of partnership agreements and of pure management agreements that don't require any capital. We're extremely excited about the response that we've had so far from those owner and occupier relationships. We like our position of building the experience and the hospitality muscle on top of our real estate experience as opposed to many of our competitors who will be forced to do the exact opposite, which brings me to my last slide. This is the Hana team that we've built and we intend to build on this team. They come from very diverse backgrounds, real estate, hospitality, technology, consumer products.
This is a busy slide, but it's a reminder of the importance of talent, which is a key component of CBRE's overall strategy. This is a very talented team and we're confident in their ability to help us build Hana. With that, I want to thank you for your time so far today. We're going to take a very short break so that you can stretch your legs and enjoy some food and some drink. We're starting again in 15 minutes.
And again, thank you for the session thus far.
Ladies and gentlemen, we'll be resuming in just a few minutes. As a reminder, our meeting will resume in just a few minutes. Thank you. Ladies and gentlemen, please welcome Global CEO, CBRE Advisory Services, Mike Lafitte.
Well, thank you all again for being here and for those that are dialed into the webcast, thank you for your interest in CBRE. So I have the privilege this morning to talk about the largest segment after our reorganization, the advisory services business, which I have the distinct privilege of leading globally. So this first slide will kind of give you a sense of kind of the size and the scale. Jim mentioned it earlier, kind of the numbers. You can see on the top left side of this business of this slide, our diversification around the world.
So this diversification and this scale, I'm going to talk about later on in my comments. So we are globally diversified and we're also diversified by line of business. And you can see this on this pie chart on the right side in terms of kind of the activities that we now define as this basket of of lines of business that we provide within advisory services. And you can also get a sense of the scale of the things that we do. We're number 1 in all of these activities.
We're very, very proud of that. But this hopefully will set the stage for this discussion today. Jim also mentioned earlier our growth expectations, you can see in the bottom left. This is a business that we are expecting positive operating leverage. Growth rates have been slowing down in some of these activities, but we're still seeing nice growth rates across these lines of business and we're expecting positive operating leverage.
That's a big theme for us. One of the things that we really think about as a leadership team is taking market share. We've done that consistently over the years and that certainly is our plan going forward is to continue to lead market share growth. So when I step back and think about the reorganization and its impact to advisory services, it is meaningful. And I wanted to just spend a moment here and just kind of double down on some of the themes that you've heard already today in terms of the impact on this organization.
And the first has to do with just focus. The market leaders, the geographic leaders today that lead advisory historically have done a lot of things. They still do a lot of things in terms of activities, being great partners to our principal businesses, being great partners to our GWS business. But make no mistake, this team is now solely focused on growing this business. So it narrowed the focus a bit in terms of our focus for this group and the accountability that we were going to drive through this business is stronger than it's ever been.
The second piece is obviously people. We have promoted and moved up, moved out, moved over a lot of people in this organization, very compelling leaders into new roles with a commitment to diversity and a commitment to making sure that we've got great career paths for our top talent. And that's been a big part of this. The structure of all this has been set up so that we've got collaboration in the middle of it. So the matrix that we've historically lived in is still very much alive and well.
So this connectivity that we've got with GWS all around occupier clients primarily is still really, really important for this reorganization. We've got a reinvigor kind of new next chapter for our client care program. Ray Pittman has moved into this role, retooling the group, refocusing around our key top investor clients as well as scaling that program all the way into the local markets. So the clients are always at the center of this discussion. And lastly is our products within advisory.
We've been doing these things for a long time. This business has been known CBRE has been known for these activities for decades and our market leadership is unquestioned. Jack Thirberg is now in a new position. Jack is in the room with us today. His focus is driving these products through the line of businesses.
We drive the strategy of this business through line of business, not through the geographies necessarily. We then deploy that strategy. So an intense focus around our products. And all of this ultimately kind of comes together to lead to growth. So you can see on the left these changing preferences from our clients in advisory, and this has been going on for 5, 6, 7 years in terms of the things, the observations that we're watching in the marketplace going from local to global.
And certainly our footprint plays well into that. Going from transactional to advisory and going from commoditized offerings to differentiated offerings. And that's the place that where we are so focused. Just as an example of this middle point going from transactional to advisory, we rebranded what we used to call leasing or brokerage internally to a new term that we now call advisory and transaction services. That's the name of our leasing business.
And it was for a good reason because no longer is it just about doing the deal and having the expertise on the ground that knows the market that can do the lease or that can do the transaction. Now it's about bringing all these other consulting services to the table that I'm going to describe in a minute. So it elevated the brand of that activity to match the expectations of our clients. So I'm going to spend the majority of my time really talking about these things on the right hand side of this slide, which is how we're going to differentiate and how we're going to outperform in this segment. And it's around top talent, it's around our platform, and it's around scale, connectivity and culture and how we bring all of those things together.
So first is top talent. And we thought about how can we show and prove to you that we've got top talent. Well, we're going to look at this through a couple of different lenses. This is a look at our Capital Markets business. We are number 1 globally and we're number 1 in Capital Markets in the U.
S. Real Capital Analytics is a third party that the industry relies upon. We all report in activity and it shows on the left, we have a 16% market share. This is in the U. S.
Our next number the number 2 peer is at 9% and 9% and then 7%, you can see that. When you dig into this a little bit further and look at the top markets across the U. S, we then on the right hand side, you'll see the top 20 markets. You can see obviously that we are number 1 in the majority of these markets. Now we accomplished this by having top talent in all of these markets and it's a primary driver for these results.
It's extremely important to our clients when they go market to market, whether it's a portfolio transaction or a single asset sale that we they expect us to have the top talent. And I think this is a proxy and evidence that we do have top talent in these markets. And it provides deep expertise across all of these product types. Now looking at the advisory and transaction services side, the leasing side, it's even a more compelling story in terms of our market lead. So as many of you know, it's harder to track the leasing side of our business in terms of market share.
There's no independent third party like RCA is to Capital Markets. So we're sharing this for the first time. This is our own internal research in how we track one way of how we track our market share. So in the U. S, we track the largest 25 transactions on the occupier side that happen every year in a single market.
And you can see on the this is the top 20 markets in the U. S, the top 25 deals in each of those markets. You can see our market share is 30%. You can see number 2 is 16% and 15% and then all the others are 39%, a commanding lead here. What's more compelling is when you also then kind of look at it market by market.
Of the 20 markets in this space that we cover, we are number 1 in 18 of the 20 markets. Again, this implies we have the top talent in the market. We have the market share lead and we expect to keep on that pace. The importance of this top talent, I just can't it cannot be understated. It creates tremendous synergies within our offices themselves and across markets.
In this world, and I'll show some slides later about this around the accounts business. And the accounts business, when we talk about that, it's a relationship where we have a contract, where it's not a one off transaction. We're doing multiple deals in multiple places. And in the world of the accounts business, this top talent is critical to be able to go from market to market. If you're in New York and you're sending a deal to Delhi or London or wherever it is, it's really important that you can rely on great execution in those markets.
And we have that all around the world. And an important point I want to make here is if you don't if you're in that accounts based business and you've got gaps in your coverage, whether it's gaps, if you're just on the west on the coast or if you've got gaps anywhere, it is a material disadvantage for you. And for us, this depth and the breadth of our platform is a real advantage, not only to our professionals, but also certainly to our clients in terms of execution. Now the second area where we're focused on within advisory is our platform. You've heard Chandra talk a lot about our D and T platform.
You've heard Bob talk about it. And this is a little bit of an eye chart in terms of kind of how we are trying to depict and describe our platform for you. But let me kind of walk you through this. So on the left side, you'll see kind of the traditional property type. We have specialty practice groups.
People generally focus on one of these property types as a whether it's a leasing professional. This is primarily aimed at our leasing business, but I can we can have a similar chart for capital markets for property management and others. But you'll see the traditional property types, office, industrial, logistics, retail, all of those things. In the middle is what I mentioned earlier. These are advisory capabilities, deep expertise and consulting services to support the transactions.
This is like workplace strategy, labor analytics, economic incentives, all of these things now today, these are sizable groups dedicated solely to these initiatives and many of them have quite significant revenue opportunities themselves coming alongside the producer. And on the right is even further specialization. This is technical and subject matter expertise in very focused areas of real estate. You've got to know the business of the business. You've got to know the environment.
You've got to know the language and the needs to be relevant. Sitting under all of that is what we would call our sales support initiatives. You can see on the right side the scale of these activities. These are again big investments for us. Our scale enables us to invest in a platform like no one else in our industry can do.
You can see the depth of our marketing, our research, our sales management, which is a relatively new infrastructure that we've put in to manage our pipelines, make sure we've got the right team formation, the right people on the assignments to bring our best and to bring the entire enterprise to a solution. And even newer is our digital sales team to help roll out all of these tools that Chandra and her team are building. And obviously, underpinning all of it is the data and technology platform. And we just can't talk enough about the things that we're doing there to build tools that become the way we work, including our data, all the insights and the things that underpin the knowledge and the market expertise that our professionals need in the marketplace. So again, we're making investments all through this slide that are significant.
So I'm going to just highlight 3 platforms today. We've branded all of these under a suite, a name of Vantage, CBRE Vantage. We've got about 35 products across the advisory business that we have really focused on. We've actually reduced the number of products that we have and doubled down on the ones that we Chandra mentioned, the review that we went through every line of business and said, okay, for each of these lines of business, these are the things we're going to work on. On the left, you'll see 2 that we've developed for our Capital Markets business, Dealflo and Connector.
Connector allows our professionals to manage basically their pipelines. This is an active ongoing tool and it's getting a strong adoption. And when they're ready to market the listings, Connector then fully integrates into deal flow. And deal flow is a global digital marketplace and it allows our professionals to manage the marketing process from end to end, connecting property investors and the buyers worldwide. And we're getting tremendous not only adoption of deal flow, certainly in the U.
S. Has become our platform and it's now rolling out globally. But it also provides a lot of data and insights in terms of buyer preferences on the buy and the sell side. So it's becoming quite a powerful tool. And on the right is Dimension.
This is built for our advisory and transaction services business, our leasing business. It's an interactive digital mapping system. And our professionals since 2016 have used this 2,500 times and with 2,500 different clients. And this enables site selection along with key metrics and making leasing decisions. Now these things are proprietary and they're becoming part of our everyday life in terms of how our brokers are actually doing their work at CBRE.
Okay, wait. Can we go back one? There we go. The 3rd lever for us to outperform where we're focused again and distance ourselves is this idea of scale, connectivity and our culture. And they all definitely go together.
So let me first address scale. And I mentioned earlier, this is a real advantage for CBRE and for our clients. It enables us in serving our global clients, whether it's a global mandate, a regional mandate, it's very logical. If we've got a global footprint, we can serve those clients, providing consistent and deep expertise globally. And at the end of the day, it goes full circle and allows us to reinvest back into the business.
Now on the left hand side, again, we're very proud of our market position today. We're number 1 in leasing, we're number 1 in capital markets, appraisal, property management. And this is decades of hard work, decades of M and A, decades of recruiting. And I will tell you there's not one ounce of complacency with our leadership team around our market position here today. We are working on extending our lead across these lines of business.
So there's lots of ways we thought about kind of talking about our scale relative to our competitors, but we thought this bottom left might be an interesting chart for this audience. So here we're looking at total equity market capital of our sector and you can see that CBRE has more than 40% of our segment in our industry for publicly traded companies. And we've got advantages on and we've got plans in terms of growing that and plenty of room in terms of market share. Now I want to kind of pivot to the right and kind of talk about how we grow and how we think about scale and how we can actually grow in a place that's a major market. And the example here is Boston.
And I'll tell you a story of what happened in 2018 under the leadership of Jack Gerberg and his team. So for the last 20 years, we've had a joint venture in Boston, kind of unusual. We typically own almost all of our offices, but we've had a great relationship with our team there for 20 years. We completed the acquisition with the help of our corporate development team of the joint venture kind of in the middle part of the year. We then which is a market leading business by the way.
We then had an opportunity with another competitive firm to have a significant recruitment effort. You'll see on this pyramid as we kind of built this business over the last 6 months of the year, we added 46 additional leasing professionals into this business that were market leading professionals. So this is this idea that a talent attracts A talent.
And on top of that, we bought a
property management business that added 10,000,000 square feet to the portfolio. We then recruited a capital markets team, 12 people from another competitor, and then we injected more sales management into the local leadership team. So when we have this kind of scale, whether it's in London or it's in Boston, great things happen, synergies happen. The talent comes and we just become a very, very strong compelling force. So this is an example of how we can grow in a market going from a joint venture to the end of the year with a significant presence in a major market.
So I can best illustrate the idea of connectivity and culture, this theme of that by what we call our own workplace strategy, which is Workplace 360. We started this about 6 years ago and actually this week we just opened our most recent version in Amsterdam where it actually all began, very, very transformative kind of process. And this is actually the place where Host this was really the origins of kind of what now is Host and turning into HANA, kind of changing the way we worked ourselves, free address, collaboration spaces, totally changing our workplace. And it leads in driving efficiency, design, promoting collaboration within our offices. And this is all about this connectivity and creating workplaces, environments that people want to be.
It helps us attract talent, it helps us retain talent, and it's also got sustainability and wellness and all those things in the center of our planning. It improves how we do our work. And you can see the stats, the tangible results of what our people say about the experience of being in our space. Not only that, our clients have been kind of following our lead here. The tours in these spaces have been amazing.
So I'm going to go back to this notion of talent and the importance of leadership talent. We talk a lot about professionals in the transactional side and we've been on active recruiting binge there for the last 6, 7 years. But leadership is really important at CBRE. And this is the advisory leadership of how we organize the business. So the Americas, we've got 7 divisional presidents.
We break the business into 7 divisions and in Europe and Asia, we've got 5. Each of these divisions are significant in size. They're anywhere from a $500,000,000 to $1,000,000,000 each in revenue. These are large companies in and of themselves. Each has a very senior executive sitting as the President of this region.
All 7 of these in the Americas report to me. This is where I spend the vast majority of my time. And the other 5 report to Martin Samworth, who is our leader now based out of the UK, running all of Europe and Asia today. So combining those two regions, operationally has been a lot of operational efficiencies and productivity gains that we're seeing there. And this is a pure leadership model.
We do not believe in the player coach model. As Bob said earlier, typically in our industry players don't make great coaches. So it is an investment in leadership and it is extremely deep for us. When I think about our 3 stakeholders, our shareholders, our clients and our employees, this leadership team is accountable for every single one of them. And I would say that evidence of the job well done with this team measure us by the outcomes and the results.
That's what they're charged and challenged with is growth and outcomes. So in bringing this all together, thinking about what I just said about the talent and the platform and our connectivity and culture. From a client's perspective, if you think about the ingredients of having the best talent in the marketplace, you think about the platform, especially with our digital tools that no one else has or can invest in like we can. You think about this connectivity and a culture of collaboration and great account management and focus around those clients, the end result has got to be better client outcomes. That's our goal.
And for our professionals, it's a very similar discussion. You've got a differentiated platform at your beck and call and sitting there for you. You've got a culture of connectivity. You've got a client roster like no one else. And you've got a leadership team that is there to support you.
They're not in your pocket. They're not sharing deals. They're there to lead. They're there to grow and they're there to manage the business. And hopefully the end result there is more successful careers for our professionals in the advisory business.
So I'm going to put all this together in a couple of slides that I'll end with here. And the first is looking at kind of our clients, kind of a lens through the clients. So on the left, you'll see our top 100 clients today in the Americas. And this is clients from both the GWS and the advisory side of the business. We generate $2,200,000,000 in revenue from these top Americas based clients.
For those same clients, we generate over $800,000,000 of revenue in EMEA and Asia Pacific. The global footprint allows us to do that allows us to do this. This is about our ability to serve clients in more places because of our scale. And on the right, you'll see kind of a similar view, but through the lens of our top facilities management clients sitting in GWS. So we generate $1,600,000,000 in revenue in the FM for these top 100 clients, And we also generate $400,000,000 in transactional activities for those same clients.
This broadens and enhances
our scale.
We've talked about this account based work for occupiers. This is a slide that kind of talks a little bit about that to give you some context. Account based again means that it's a contract for services. It's not one off. They can involve multiple geographies, oftentimes multiple lines of business.
And again, using the same internal data that I mentioned before, looking at the top 20 U. S. Markets, the top deals, you'll see the pie chart on the left suggests 59% of those deals are account based clients. This again positions us extremely well given how we operate and how we serve these account based clients. The graph on the right shows that our account based work, our own experience now is growing faster than our one off business.
Again, this is a result of our platform. This is a result of us winning more and more accounts. But you'll see a material difference in the amount of work that we're doing in terms of the growth rates of the accounts. This is a this plays well for us. We think this trend will actually continue to go forward.
And this is a similar slide that I showed last year. This is all about the war for talent in our race to add and to attract and retain our top talent. On the left, you'll see for the last 4 years, a bar showing our new hires as well as our losses. And the first notable thing that you'll see is obviously the new hires is more. We've been growing net headcount for 6 years in a row in our brokerage ranks all around the world.
This is a big priority for our leadership team. You'll also note it's kind of in fine print. It's a little bit harder to see, but you'll see that we do not lose our top producers very often. It's a very, very low percentage of our very top producers leave the firm. On the right, it's kind of a different look, which is suggesting that we take from large competitors, the traditional competitors that you know, but more so we take from the boutiques and the smaller firms.
And this is evidence that if you don't have the platform, if you don't have the technology, you're not in the game. If you want to play in the occupier world, you've got to be on a platform like CBRE and we have the best platform in the world. Our ultimate mission is growth. Our ultimate mission is outcomes for our clients and for our shareholders and great experience for our professionals and we are working extremely hard within the advisory business to do that. It's now my pleasure to introduce Lynn Williams to the stage.
Lynn is going to tell you her story. Lynn comes from Southern California, one of the top occupier leasing professionals in the business. And Lynn, come to the stage and thank you very much.
Thank you, Mike. I am very happy to be here today. I began my career as a practicing real estate attorney in Los Angeles, but I left the practice of law when I had an opportunity to go to work for the President and CEO of a major international commercial real estate firm and work directly with him on his transactions across the country. It was an exciting, heady business. It was a great time.
And I stayed there for a long time. I had a long and successful career and I built great relationships with wonderful clients. But over time, I observed that the commercial real estate brokerage industry was changing, no longer was it low tech and provincial, no longer was it just a relationship game. So about 5 years ago, my team and I faced some very substantial business risks. Risk number 1, competing for new business.
Today's occupier clients demand best in class talent, consultancy level advisory capabilities in a multitude of disciplines, tools, technology and data and leadership who is driving vision and demonstrating results. Risk number 2, this really hits home, maintaining existing business and client relationships. My existing clients, these 25 year relationships were asking me for tools and talent in other markets that we simply didn't have. They were not satisfied with our firm's offerings when I needed to go to Chicago or New York and bring in a local broker. They weren't having it.
They said, we need you to go to another competitive firm and use a broker from that firm. My firm at the time was unable to respond to the challenges and those challenges were really posed by CBRE, who had established itself as the industry leader. At the time, I was also being recruited by CBRE and some of the and all of the other top brokerage firms, and I investigated them thoroughly. I really wanted to make sure that what everyone was saying was true. And at the end of about a 6 month process, I was clear.
Only one firm had what my clients were demanding and that was CBRE, that platform. CBRE's tools were sharper and they were better and there were more of them. And the investments in the platform CBRE was making differentiated it within the industry. That platform provided a clear competitive advantage to all the brokers there and drove better client outcomes. So my team and I made the move to CBRE and the impact was immediate.
But rather than talking to you about that in the abstract, I want to take you through a case study that illustrates the value of that platform to the clients, to my team and to me. So on the very first day at CBRE, I met with Andy Ratner. Andy is the leader of the Downtown Los Angeles office and that occupier Advisory and Transaction Services Group in Southern California. Andy was attempting to deliver a roadmap of the myriad CBRE services to me and to my team, And three things became immediately obvious. Number 1, CBRE had the tools and the experts that my clients had been asking for.
Number 2, no one had more data than CBRE. Importantly, not only did they have the data, Northern Firm had the people who understood how to utilize that data, connect the technology with the producers and the service lines and solve our clients' problems. And number 3, many of these resources were going to be immediately beneficial to my clients, but there was one particular client who came to mind. And I suspected that this client may soon be considering some alternative headquarter strategies. So I rudely stopped the meeting and I called the Head of Corporate Real Estate and I said, can you come over to our offices and join this meeting with Andy Ratner?
And as luck would have it, he was available. So he walked into our modern workplace 360 office that Mike Lafitte just described and he saw the way we work. He felt the energy. He felt the excitement, and he immediately wanted to duplicate that for his operations. So in our meeting, Andy Ratner showed some sample work product from CBRE's Labor Analytics, from Workplace, from Financial Consulting, And he planted the seed that ultimately secured this assignment for us without a pitch.
That client is City National Bank. It is the largest bank based in Los Angeles. City National had grown in downtown Los Angeles from 250,000 feet to 450,000 feet, and it was bursting at the seams. Client facing colleagues and non client facing colleagues were co habitating in the headquarters and to complicate matters further, City National had recently merged with the Royal Bank of Canada and who had given the bank a mandate to grow. So they needed an immediate strategic business plan and a headquarter strategy.
I'm going to go into the service lines at CBRE that were engaged, but I have to underscore before I do that for every question, every hurdle that City National faced, CBRE had a team of professionals, experts in their fields, ready to assist and partner with my team and with the client. They delivered tailored information specific to City National. Nothing was off the shelf. Everything was easy to digest and it was in presentation ready format. These CBR professionals provided information and strategic advice that shaped the outcome of the assignment and actually saved my team weeks of work.
So let's talk about the labor analytics group. This is an excellent example of the difference between brokers and strategic advisors. CBRE asked us to compare the cost of a relocation of their colleagues out of state with a local transaction, but they wanted it yesterday. So our CBRE labor analytics team provided immediate and thoughtful data on the cost of relocating out of Los Angeles to each of 5 cities. Based on this information, we were able to put together a comparative analysis showing the P and L impact to the bank's executive committee.
And this analysis drove the consensus at a very critical point in the decision making process. City National executives indicated that contrary to many other corporations, the value of colleague retention and revenue growth far outweighed the marginal savings associated with an out of state move. The bank executives were unwilling to risk the potential disruption and loss of colleagues that could be associated with the relocation of this magnitude. So they ultimately decided that headquarters would remain and grow in Los Angeles. Having made that decision, workplace absolutely knocked it out of the park.
Our workplace professionals are a very impressive group. Most of them are Ivy League educated and others are trained architects and they came in and played an integral role in this process and in changing the way the bank occupies space, really getting the bank to embrace an open work environment. The workplace team also, and very importantly, partnered with City National's technology group to marry the bank's technology with the demands of a new work environment. So this is a little bit of the CBRE Workplace work product. The location assessment chart on the left, this provided critical information on the locations in the Greater LA area that would be acceptable to the greatest number of colleagues.
And we've already said that colleague retention was paramount. On the right, the adjacency assessment chart illustrates the business units that really needed to be together, which ones could stay in the headquarters and which one could be relocated out of the building. And the space requirement in a situation like this with this exponential growth, this was key. So even with the future efficiencies to be realized with a new workplace strategy, the bank was going to need more space, but the question was where. The workplace experts gave us educated estimates of the amount of space that City National would need in the headquarters and in what we call the second hub and when.
And so using that when we were able to structure transactions to meet the bank's growing needs and they are thrilled with that. Our financial consulting group. This is again very important to the process and to our team, comparing multiple locations and assessing a myriad of different scenarios. The bank had a new parent company, RBC. So it was critical that the financial analysis was in a format that satisfied both entities.
The complexity of the scenarios combined with the different financial perspectives required experts in financial modeling. And this team really did a phenomenal job of doing that and proposing creative financial strategies that ultimately were woven into the transaction. So let's talk about the results. By making use of CBRE's platform, City National and CBRE produced what we consider to be extraordinary results. I think competitor firms would have struggled to replicate what we brought to the table.
Labor analytics, workplace, financial consulting and advisory transaction services. The results of CBRE's partnership with City National Bank, 2 leases in Downtown Los Angeles for 606,000 Square Feet, 2 building top signs on landmark towers, dynamic working environments for the bank's colleagues in both locations. And these locations are synergistic. They're 5 blocks from each other. The ability to retain and attract colleagues and the flexibility to manage that up or down.
The bottom line, we increased seat capacity by 37%, but only increased base requirement by 15%. The end result, savings of over $140,000,000 to City National Bank. Workplace guided and developed see the bank's new workplace environment and it has been extraordinarily well received. Client facing business units who are still in the headquarters will soon be getting a facelift, but the majority of the non client facing were relocated into the 2nd hub. This image here is this is the space in the 2nd hub.
Those people who have moved, this is not a downgrade. This is a reward. Highly creative, dynamic space and it's resulted in measurable productivity and colleague satisfaction. So this is just one of 90 it's an important one, but it's just one of the 95 transactions that my team and I have completed at CBRE since we joined the firm 4 years ago. On each one, my team has utilized a suite of CBRE resources to benefit our clients.
The way I do business has changed because of the tools and the technology that CBRE has produced. It's allowing me to service my clients at a much higher level and much more efficiently. As I said earlier, CBRE's investment in the platform differentiates our firm within the industry. As demonstrated by the case study, the CBRE platform drives better client outcomes and provides a competitive advantage. And I want to talk about that advantage over the competition.
It pays dividends to each of us, making us more productive and profitable. It's enlarged our business base, deepened our personal satisfaction and cemented our commitment to this amazing company. I am just one of many for whom CBRE has been transformational. I share the engagement, satisfaction and pride of my CBRE colleagues, and I share their passion for this extraordinary organization. From my senior seasoned colleagues to the junior associates who are just eagerly beginning their careers, I'm energized and excited to be a part of CBRE and inspired by our leadership to achieve excellence and settle for nothing short of the best.
Next, you'll hear from Bill Concannon, who leads our outsourcing business.
Thank you, Lynn. It's a great, great unbelievable case study. I'm Bill Kincannon. I'm pleased to discuss our Global Workplace Solutions business with you today. And I want to start by recognizing Duncan Green, who's here with us today.
He's our Global CFO, based in London for Global CFO of GWS based in London. And another great example of leadership coming into the company, he Norland Managed Services acquisition back in 2013 and has had different roles and in the past year has taken our CFO's role. So welcome, Duncan. Glad you're here. My first slide here is an overview of GWS.
And I think many of you are familiar with it, but I wanted to just give you one slide to give you again a reset and an overview of the business. Think of it as a corporate real estate outsourcing business. That's what it is. It's all four products that you see in green there. The 4 are FM, Projects, Transactions and Consulting, all 4 in green, sold in a contract contractual way, right, in long term outsourcing agreements.
So that's the business. The client list is a who's who with the Fortune 500, very impressive list of corporate clients, Global 1,000 clients all over the world, Americas, EMEA, Asia Pacific. We were at the forefront many years ago of a shift in our industry from selling transactionally to contractually, and we benefited from that in the last few decades. We've got nearly 50,000 employees, many of which are building technical engineering specialists and that's unique as you'll hear. A global reach of over 100 countries that is a differentiator.
Our mission is to drive best practices, take cost out. That's still the number one thing. Help us reduce our total cost of occupancy, which by the way is a big number. For large corporations, they could spend 4% to 5% of revenues on total cost of occupancy. That's not just facilities management, it's not just project management, it's rent, it's taxes, it's insurance, it's all of the costs attended to housing professionals.
And it's a growth business for our company and we expect positive operating leverage and double digit fee revenue in this business for the foreseeable future. And you heard that from Jim Groch. So Slide 3 is something you heard from Danny and Mike as well. It's the impact to GWS on this reorganization. And I would just say from my own excitement, I've been with CBRE going on 34 years myself and predecessor companies, right, CBRE and predecessor companies.
And the reorganization that we've announced last year and that it's in place now is one of the most important strategic changes I've seen in my career. I'm very excited about it. Great credit to Jim and Bob and the Board. And we're off and running. And so these are some of the things that demonstrate the ripple effect to the GWS side.
So the business model is very clear in terms of for our clients, for our people, in terms of how we deliver their capabilities. And that's across the globe. Accountability, transparency for this group, I know Jim mentioned it, Bob mentioned it. You wanted to understand the GWS business and now there's going to be full transparency. And we're excited about being able to demonstrate what that is on our accounts based business to investors.
Clients, we have a growing stable of clients that are over $100,000,000 a year in revenue to CBRE. And it's interesting when we show up on their enterprise risk, we're a Tier 1 supplier and our clients are increasingly wanting to understand what their big Pier 1 suppliers are up to. This is going to create more transparency and clarity for them as well. So there's a lot of great and exciting benefits to that. So as my review with you today, I just wanted to pick 2, 2 of the 4 products and update you.
The first is Facilities Management, which of course is our largest line of business. Here we go. So it's not only our largest line of business, but core to our other offerings in GWS, Facilities Management. It's no surprise here it's sold under 5 year contracts, high renewal rate, 2,500,000,000 square feet and growing, And it's core to the other services because our people are walking the halls every day. Their ears are open, their eyes are open, they're listening, they're doing just what Lynn just talked about and Mike talked about earlier.
They're professionals that are really trying to understand how they can solve challenges and problems from our corporate clients. So we've provided the pie chart on the right to help define FM services for you. Some of the services we typically self perform like engineering, technical services and some we subcontract like cleaning and catering and many more. And look, we're providing all the services to deliver that to responsibly and safely manage a large building or a campus of buildings or a portfolio of buildings. The gray circle around the pie chart is really important.
It's what really sets us apart at CBRE. And as an integrated facilities manager, we bring the full scope of services to the client together deploying people, financial systems, supply chain management, quality health and safety, compliance, all of these through the CBRE contract and process. And we're able to do this globally. And that is a definite differentiator. And this has proven to be a very valuable proposition for our clients.
Over the past few decades, we're able to now serve these clients across geography, across different building types and across different industries. So we you see here, we're adding value in different ways. 1st is simplification. Many of these clients have 1,000 or more vendors in their portfolio. Now they have just CBRE.
Cost, obviously reducing costs. Risk, transferring their operational risk on to CBRE for their buildings consistently consistency. Clients can leverage facilities management professionals to consolidate and standardize the supply chain. And then speed and agility is increasingly a value because clients are challenged internally to keep up with the speed of business in their own internal businesses. And we hear that again and again.
So they rely on our expertise for that. We've sized the FM market for you before. We've updated that and we look at the total addressable market today is about 100,000,000,000 dollars It's growing by mid single digits according to Frost and Sullivan. And what I tell you is the $100,000,000,000 is taking a pretty conservative view. And I like our plan to build and lead that we have today in this market.
Okay. So I want to explain the FM business model and the service delivery approach and why it's differentiated in this market. So going back to 20122013, few years back, we made a strategic decision based on where we saw the industry going. Just like Chandra talked about, emerging trends from our clients, looking at the industry changes and we followed a very disciplined approach to M and A. And we followed a very disciplined approach to try to become more global, much more focused on self performing technical services and engineering.
And over time, we were able to build that out and focus on critical environments as well. And then we updated that in 2016. So we did some acquisitions, right, 13, New Orleans, 15 Johnson Controls, and we updated that strategy in 2016. We started focusing on supply chain management, digital and technology and smart building innovations in FM. As a result, what you're looking at is a diagram of where we've arrived in 2019, which is a truly differentiated global model that is very difficult for our rivals to replicate this model.
So let me walk you through the model top to bottom. We provide access to clients on 3 different FM models. They can engage as appropriate and to their needs. 1st is Enterprise FM, which you're most familiar with. This is the large portfolio of outsourcing contracts with corporate headquarters, multinational corporations.
The second is Local Technical FM, greatly advanced when we acquired Norland Managed Services. Some clients like and need to buy local. Some clients like to need to buy for a data center solution. And so this really addresses more local and more technical sites. And then the third is the on demand FM.
And this is greatly advanced by our acquisition of FacilitySource last June. On Demand provides clients with kind of an Uber like approach to tap into our FM supply chain, very big, to tap into variable technicians and technology and the model works for clients with large distributed portfolios. Around the globe for every client we manage with a proven FM delivery approach and this has been a major advantage for us. First, our account management model you see there in gray, CBRE account management. Next, on the delivery side, we're self performing now about half or over half the services we deliver, and we're basically subcontracting to a highly curated supply chain the other half for services like cleaning, security, food services.
And for many clients, we're introducing energy strategies, executing retrofit projects and integrating smart building capabilities. So that speaks to our delivery approach. Our Vantage analytics and efficient back office wrap it all together. We're increasingly using technology, connected equipment to drive more efficient management of buildings and systems. And Chandra's team really has helped us put a lot of effort into consolidating our data.
And this has been a big move in the last couple of years. We're currently running over 11,000,000 work orders on CBRE owned systems. And so that's giving us more predictive maintenance capabilities around equipment and equipment failures and so forth. So there's lots of implications across all facets of our business. We've built advantages as a result of this disciplined strategy and investment over time and these advantages set us apart and make our solutions more valuable to clients, which you can see on the bottom here.
Global capability, account management, deep experience in technical buildings, technical environments like data centers are just 4 of those advantages. So I believe in FM, we've arrived at a place with strength in our model, but I also believe our work has positioned us well to benefit from the next phase of advancement in our industry around digital driven FM. The next service I want to talk through is our 2nd largest service, which is project management. So I wanted to tell you about project management and why I'm so excited about this business. And it will help you, I think in the future as an easy reference to go back when thinking about this business to see how it fits as a bridge between advisory and transaction services and facilities management that I just described.
So from advising clients on lease transactions, the way Mike and Lynn just spoke about to consulting on occupancy planning, on design, including the build out to handling the move management, corporations are constantly reworking their space to meet the needs of the shifting workplace demands. Not to mention M and A, not to mention rebranding programs, not to mention new builds for their own businesses. We're also performing project services for our local technical businesses. And these are smaller, faster churn, typically projects associated with the building management systems, the equipment. That's highly recurring CapEx around the business.
And I don't we thought one thing we don't talk about enough is the speed of business has ramped up so much inside our clients business that when you're positioned across all of these segments in the light green, that it gives us a clear advantage for our clients. We hosted 250 clients last week in Arizona at our CBRE Institute. And the number one challenge we heard from these clients was we're having a hard time staying keeping pace with the change of business in our own companies. We need your help to get there. And when you have those kinds of services that sit between transactional work and facilities management and every step of the way delivered on an integrated basis, it puts us in a very strong position to grow, continue to grow this business.
So in terms of growth, this is the slide we wanted to show you on size of the market. So this is U. S, This U. S. Has been validated by a third party and it's just a segment of the project management services we play in today.
We've done this market sizing. We estimate that the portion we play in based on the types of project assignments we typically go after today is $9,000,000,000 $9,000,000,000 in fee revenue. This is just the U. S. Alone.
It's a large market. We believe we've just got 10% market share. If you extrapolate the analysis globally, the market gets much larger. If you extrapolate the market where and this is where we've traditionally played for new services like principal contracting and opening up to 2 new asset classes, the market size and growth opportunities gets yet again larger. So growing our project management is a board level strategic imperative for the company and we're very, very focused on growing this business.
And interestingly, we went back and did research since 2007. When we sell a contract for project management, right, and we cross sell into advisory and transactions or we cross sell into facilities management, it's the highest, it's the most, it ranks number 1 in terms of the cross sell services to another CBRE service. So it's very interesting and very exciting in terms of the growth for the future there. So speaking of growth, I wanted to talk about our how we're positioned for the future. This slide details some of the growth elements of the GWS business.
And as you can see, 40% of our growth year over year comes from winning new clients, 60% of our growth comes from expanding existing clients. We've got hundreds of clients. We typically have 30% of share of wallet market share with those clients. Some we have much greater share of wallet, but some we have less. On average, it's 30%, which gives us a lot of upside with our current base of customers.
In the case of Whirlpool there, you see Whirlpool, that's a new customer and it's global and it's full service. So it's advisory and transactions, it's project management and it's facilities management. That's a new client in the case of ExxonMobil that we had an existing relationship, but the expansion was global and full service. And they were looking to consolidate around the world with an exclusive provider and reduce risk. I'm going to introduce Darcy in a few moments and she'll speak about the Uber case study.
And that was an existing client again that went out to the market. And once again, I'll let you tell the story, but this is a very exciting new economy tech case study for you. So expanding our full service corporate real estate business with our existing clients remains a big priority. And now I want to reiterate something that I said earlier, which is we continue to expect double digit fee revenue growth and positive operating leverage in this business for the foreseeable future. So let me share a couple of stats on the business to back that up.
This is our pipeline, our sales and client solutions pipeline and it's indexed to 1 back to 2016. So you can see our pipeline of business opportunities has nearly doubled since that time. And with the addition of FacilitySource and with the market adoption growing on new verticals, I think it will expand from here. So it's a very strong pipeline. We've got a very disciplined global solutions team.
They cover the world and we're increasingly consulting with clients on the best outcome. Internally, we're talking a lot more about customer selection and whether these clients want to partner with us on the terms that are win win for both CBRE and the customer that are beneficial to both sides. We have very nice momentum on the facility store side. We announced with the signing of a contract last week with a national retailer, U. S.
Retailer, almost 2,000 locations, all to FacilitySource. So a major win with that business. I'm also very excited about the recent signing of UPS, 1st generation, massive, very large market making multiyear agreement with UPS. And they said to us, look, the unique combination of CBRE's strengths gave them confidence that they could achieve ambitious goals. In the UK, just in the last few months, we've signed on a facilities management agreement for British Telecom on all their assets in the K.
So some very nice momentum in the sales and client solutions side. And this is around client sat. This is a slide I'm very proud of the team for. The clients believe they're getting value and they're getting good service. They see us investing and they see us innovating on their behalf, even if that even if it's not something they've already implemented with us like Host or HAMA.
So these scores are result of an annual review, independent review, a 4.0 is highly satisfied, a 3.0 is satisfied. To get to 66% dark green, those clients have said we're highly satisfied with the value and service we're getting from CBRE. When you add that 66% to the satisfied, we're at 95%. So we've made substantial improvements over the last several years. Getting to dark green is important.
It's very highly linked and correlated to renewal rate, to expansion and to margins in the business. So I'd summarize by saying 3 things. Outsourcing of corporate real estate is a growth business. Very clearly, it's a growth industry. We continue to drive toward a highly differentiated offering.
We like our position very much, excited about our position and it feels very good right now. We're very excited about the reorganization. So now I'd like to turn the floor to Darcy McKay. Darcy was recently promoted to lead our global human resources role for the company, the entire company. I'm very proud of her.
Before her promotion, she was the divisional president for the West in the U. S, 13 Western States for GWS. And she did an outstanding job there. So she's a proud GWS alum. And she's going to come up and talk to us about the Uber case study that she was very involved with.
Darcy?
Thank you, Bill. Okay.
All
right. Well, as Bill mentioned, I've had the honor of working firsthand with a large number of our GWS clients, including many of the world's most well known technology companies, financial services firms, hospitals and retailers. And I realized that for those of you outside our industry, GWS can be challenging to understand. And so today, I'm going to describe to you the GWS service offering through the lens of one of our clients. And my goal is to leave you with a better understanding of the GWS business and our competitive differentiation.
So CBRE began working with Uber in 2014 with one of our leading producers in Chicago. Uber asked CBRE to act as their tenant representative in 6 transactions that 1st year. And as Uber has grown, so too has our relationship. And by the end of 2018, we had completed 158 assignments for Uber around the world. Our transaction relationship has led to a more comprehensive outsourcing relationship as well.
More recently, GWS entered into a strategic partnership, which includes all of our services. So facilities management, project management, advisory and transactions and consulting. And we're currently in the transition phase of commissioning all service delivery for Uber globally. Transaction firms without global reach would have struggled to keep up with Uber's expanding footprint needs. Transaction oriented firms without an outsourcing relationship and an outsourcing services platform would have struggled to create value for Uber when they were ready for full service outsourcing.
Uber's internal corporate real estate team now has an integrated partner, CBRE, allowing them to focus on what they do best, which is serving the needs of their internal businesses like Uber Eats and Transportation. Now as I first mentioned, GWS manages portfolios rather than single assets. We service Uber's growing portfolio of about 6 50 locations worldwide, little over 6,000,000 square feet. Many of these locations are leased rather than owned, which means that someone needs to stay on top of managing hundreds of lease renewals every year. It's administratively intense work and it actually happens to be something we're very good at.
We make sure that Uber is on top of any critical renewals or move dates. We renew and renegotiate their leases, and we even process the rent payments to landlords. We also provide leasing and project management services. Uber receives and pays for these services only when they need it. And this covers services like executing leases for new space or fitting out that space.
And I'll show you two examples of this in Seattle and in New York and hopefully explain what we mean by advisory and transactions work. So advisory and transactions refers to both the upfront advisory work as well as the lease transaction itself. Advisory work, as you heard earlier, includes the important strategic work a company needs to understand before signing a lease, like evaluating the quality of the labor pool or the quality and availability of its supply chain. The actual transaction execution is just that, buying, selling, leasing, subleasing or disposing of space with 1 of our producers. In the case of New York, Uber was challenged with a dispersed footprint and long commute times for its employees.
Our New York team first completed a comprehensive location analysis for Uber, including a commuter impact study. The math involved is not trivial. We're trying to optimize commute times of literally hundreds of employees across the tri state area, something I'm sure you all can relate to. We arrived at a recommended action plan for Uber that resulted in us negotiating a new 35,000 square foot lease in Midtown Manhattan. Uber employees are now in a convenient location with access to all transportation amenities and hubs.
And in this example, Uber was able to lean on CBRE for both the upfront advisory work, the analytical work, in addition to our ability to execute the transaction with one of our highly regarded New York producers. Now 10 years ago, these decisions were often made by separate firms. This is a very different, more consultative approach than we've seen in the industry in the last decade, and it's something where CBRE really excels. Now with regard to pricing, while I can't disclose any specific pricing for clients like Uber, in general, commissions are made every time a transaction is completed. And so this includes buying and selling real estate, completing new leases, renewing expiring leases and subleasing or disposing of space.
The GWS business and the executing producer share in the commission. And an interesting point to note is that lease renewals gives CBRE a fairly recurring revenue stream across a large portfolio like Uber's. CBRE also provides project management services for Uber. And as Bill described, project management includes things like managing the build out of new space, managing employee moves from one location to another and other types of capital projects. This slide lists a number of projects that we have completed for Uber.
And in many instances, we're constructing new space for their employees. Typically, we're starting with a blank room. We're starting with steel beams and concrete floors, and we're fitting that out into a modern office infrastructure. The GWS project managers are hiring and working with the architects. They're hiring and supervising the engineers.
They're ensuring the safety and ultimately delivering the projects on time and on budget. And with regard to pricing, while we can't comment on the specific pricing for Uber, our project management services are generally charged either as a markup on our labor or as a percentage of construction costs. Now GWS recently signed a contract with Uber to provide facilities management services across most of their global portfolio. We will be on-site at Uber's offices to ensure the building's infrastructure is maintained at high standards. CBRE engineers and maintenance technicians manage the building, manage the building's equipment, such as HVAC and lighting and plumbing and building controls.
And Bill already highlighted the fact that we've been increasing our capabilities to self perform these technical services. And in fact, most of this more complicated work is performed by CBRE employees. You can see some of our guys on the slide on the left. We use outside vendors for services such as landscaping and janitorial and these are referred to as soft services in our industry. And a major part of our value proposition to Uber as well as other clients is our ability to leverage economies of scale across their supply chain to reduce the cost of that supply chain and to simplify the supply chain as Phil referenced.
We manage 6,000,000,000 square feet of space across all of our clients and so we can usually add some value here. Thirdly, we have support teams you can see on the right. Those GWS staff are focused on Uber's accounts payable to the outside vendors. They're also taking their call center representatives taking calls from Uber employees and their platform experts ensuring that standards are adhered to such as environmental health and safety standards. It takes a lot of work to make this seem really simple for the occupants.
With regard to pricing, while we cannot provide specific pricing on the details of Facilities Management for Uber, what we can tell you is that it's most often priced as a reimbursement of CBRE's labor costs with a fee plus a pass through of contracts vendor contracts. We often receive a bonus based upon achieving key performance indicators, such as specific savings targets. Now historically, I would stop here in the explanation of Facilities Management. But as Bill noted, CBRE is also self performing what we refer to as experience services. And I'll elaborate on what that means for Uber.
Uber likes to think of facilities management from the perspective of the consumer's journey through their facility. So let me walk you through FM from the perspective of an Uber guest. When you first enter the facility, you're greeted by an experienced concierge who checks your coat, offers to check you in and takes you to your meeting. When you walk to your meeting, you take notice of your surroundings, certainly clean, comfortable, but also modern and innovative with Uber branded artwork and signage. Your walk includes taking a modern elevator to one of the higher floors in the building that we manage.
One comment we like to use is it just works. You don't necessarily notice the temperature or the air quality, but both are pleasant. Once you enter the meeting space, you see it's not your traditional meeting room with a conference room, table and chairs, but rather a comfortable lounge area with a modern look and feel. You shake hands with the Uber employee that you're meeting with who's been able to fully prep for that meeting without worrying about any of the meeting logistics, such as the AV setup or the refreshments, because the CBRE experienced concierge has already taken care of that. When you're done with the meeting, the experienced concierge with CBRE reach you again, returns your code and informs security to expect you as you depart the building.
So as I walk you through this journey of an Uber client or perhaps an Uber employee, you begin to see the skills that are necessary to deliver an exceptional facilities management experience. It's not a commodity service anymore. And CBRE has invested in the service and the training, the people and the technology to be a real differentiator for us. Now this is a great segue into how CBRE developed Host, something you heard about earlier, our recently announced new service offering and technology for experience services. Post enables users to find an open space that is a workspace that's suitable to how they want to work that day, enables them to find coffee or food.
If they choose, send their location to a colleague, so they're known where they are, schedule a meeting or contact the CBRE experience concierge for help. This services empowers our clients' employees and their guests to work effectively in a freestyle environment. So we offer this expanded facilities management service to our GWS clients worldwide, and we're also using this in our own offices. So let me pause to show you a short video on host services and technology. So as we wrap up our GWS case study, I want to highlight one final thing and that is our account management model, which is at the heart of what Bill described as our client satisfaction.
Each GWS client like Uber has a Global Alliance Director who is accountable for the following two things. 1 is managing the GWS employees dedicated to servicing that client regardless of where they sit around the world and secondly, accessing all of CBRE's services regardless of geography or line of business. You can see Richard Hughes, our Global Alliance Director on the slide. Richard sits with Uber's corporate real estate team at their San Francisco headquarters. And like his peers in similar alliance director roles around the world, he's a seasoned global executive with more than 20 years of experience, both at CBRE and JCI and other firms before that.
So in summary, the talent, the scale and buying power and our technology investments that we're making are creating a differentiated offering for Uber. And by relying on CBRE to acquire and manage their real estate assets, Uber's corporate real estate team is freed up to focus on what they do best, which is building the next generation of transportation platforms. Thank you. And now we are going to take your questions. Bob?
And as
we're taking questions everyone for the benefit of people that are on the webcast, please just wait for one of the microphones. Dan and I will be passing them out. And also state your name in the microphone before asking the question.
David Ridley Lane from BofA Merrill. Given the mix of project management and the related leasing within the Global Workplace Solutions, Could you sort of give us take a shot at thinking through the cyclicality of that business? It's not 100% contractual, does have a little bit of transactional within it. How cyclical do you think that business would be and balance that off against the momentum, the backlog, etcetera?
I'm going to what I'm going to do by the way is I'm going to take the questions and then I'll dish them out to the best person to answer them if it's not me. In this case, that's a GWS question. Bill is the right one to answer. Did you were you able
to hear all that Bill?
Not completely. It's the cyclicality of the project management business?
Yes, exactly. So how cyclical do you think aggregate GWS would be given
the various components? Yes. I mean, first of all, this is all sold under a contract. What we find is, let's say a contract is for 10 project managers full time, but we flex that with another 5 or 6 from the local market to deal with the peaks and valleys. So from a year over year point of view, the dedicated project management piece can be pretty well mapped to a CapEx planning at the corporate account level.
We have pretty good visibility out 2 3 years with what their CapEx programs need to be, with what kind of M and A they're doing that impacts the kinds of things that Darcy talked about. So visibility is good, predictability is pretty good and we don't see the kind of flex the top and bottom the way you talked about it on the GWS side.
We're here, Gary. Mitch Germain. Mitch Germain, I'm sorry.
Maybe Bill, while I have you. I think you guys I think you referenced about 30% customer wallet share. Where was that maybe 3, 4 years ago?
We used to quote 20 and then we quoted 23. So in the Americas, Jim Wilson's last piece of analysis, I'd say 36 months ago was 23%. Jim is the CEO of the Americas for GWS.
Tony? Then I think somebody was over we'll come over here next.
Thank you. Tony Pallone, JPMorgan. You talked a lot about the office business changing over time. Can you talk about how that might change the leasing business, whether it impacts sort of the commission rates or just the pricing of the leasing product over time and how to think about that?
You know what, our Global Chief Operating Officer, Jack Durberg, I think right here and our leasing business reports up to Jack. So, I'm going to ask him, did you hear the question, Jack?
Thanks. Well, we definitely see a structural shift with our customers looking for more agile solutions. However, we don't see anything in the near term that would alter the structure of fees, of leasing fees. Now, when you're in an agile solution, the lease term is shorter, right, than a traditional direct lease. And many times your fees are linked to term of lease.
So you may see a little bit of the term shortening, but we don't see anything going forward that's that we're concerned about for sure as it relates to how we're getting paid in leasing fees. Does that answer your question?
I think Greg here. Yes.
Bob, your Facilities Management business, you talked about half of the capability being subcontracted, but you're increasingly concentrating relationships there. Does that process create some optionality for potential acquisitions in those subcontracted businesses? And is that an intentional strategy?
Bill and Jim might both want to comment on that.
Yes, I would just say from an M and A standpoint, we're really our strategy is very clear. We employ highly skilled employees and we subcontract out the lower skilled work. So there are a lot of M and A opportunities for us to connect kind of continue to expand with the self delivery capabilities, but we're not likely to change the in the big picture, the types of services that we deliver versus Salesforce.
So I just add to that. Last year you saw the business we acquired in Italy was building technical engineering services, large economy, the Ramat business we bought in Israel. Those are good examples of filling in the ability to buy technical services businesses that could bolt on to our FM platform and then offer the more holistic solution. So we're definitely going to look at more of that.
Right over here. Yes, Stephen Sheldon from William Blair. Within the Facilities Management business, can you maybe talk some about the labor constraints there? It sounds like you're doing about half self performance, of labor for those contracts, which I think might be higher than it has been in the past. Is it getting more difficult to find labor to fulfill those contracts?
And you're obviously seeing really strong growth, but could that become more of a bottleneck to the growth in that business over the next couple of years?
Well, I guess it would depend on what market, but just first of all, we've become an employer of choice. 2nd of all, a lot of these big outsourcing engagements, not all, but a lot of them, it comes with their technical force over to CBRE. And they do that because the career path, the training, the ability to deal with compliance is a big factor, right. But we haven't seen it so far, a labor constraint. We draw the line not so much around we could grow past 50%, but it's the services that Darcy and Jim talked about.
We're going to choose strategically not to self perform cleaning. We're going to choose strategically to not do landscaping. We're going to have certain things that are closer to the building on a more technical building management system side that we're going to choose to do more of that. And that's reflective of some of our M and A.
Hey, Bill, can I say this based on the questions we're getting, I think there's a lot of happiness around the visibility on your business? So I think somebody here, right here.
Can you just walk me through what happens when you have maybe one of Lynn's clients who wants office space in Cleveland, how that gets allocated to a broker in Cleveland and what the economics for that broker might be versus if he
Mike, I think that's your
Yes. There's a couple of dimensions to that. First is just kind of how the team's work happens. And we've got to manage again, this back to our leadership model. So we have rules around how that work gets distributed.
So it goes into the local market, so that the local market leader puts the right team on the field. That's the first thing. Our mandates, Lynn very well has a global client. So she they expect Lynn to be involved in that relationship. So it depends on the scope of the work and how you distribute that work in terms of deploying the work locally as well as kind of what happens back at the account position, but it's highly managed.
It's not just broker to broker relationships. We actually have we manage that very well. This whole sales management layer that we put in place make sure that we're putting the right team together. So that whole idea of team formation, bringing the firm, bringing the best to the table is the responsibility of our geographical leadership. The question was, is the commission different if it's shared or allocated?
Certainly, there's fee sharing guidelines around how the work gets done and very normal kind of expectations depending on how much of the work is done by one team versus the other. It's very commonplace for that to happen.
Back here. Ryan, Tomasello, KBW. Just in terms of operating leverage, realizing that the real estate investment businesses can be lumpy, can you say what you're targeting for annual margin expansion with operating leverage in both the advisory business versus the GWS business for the intermediate term notwithstanding any cyclicality?
Setting aside the real estate investment businesses, Jim, you want to hit that?
Yes. I think if you go back to the slides we presented, you can see the specific operating leverage that we're projecting for the advisory business, we've got profitability growing and expected to grow at about a 2% faster rate than revenue growth on the Bill's business, the global GWS outsourcing business. We've got quite a bit of spread between the revenue growth rate and where we expected 10% to 13% versus EBITDA growth of 15% to 18%, so quite a bit of operating leverage. Those are the best metrics to kind of go back to. Whether that will that can vary a little bit year to year depending on the industry, what's happening, the dynamics, where we are in the business cycle.
In general, we should expect GWS to have stronger operating leverage in the intermediate term just based on the revenue growth that it's experiencing?
Not necessarily. I think what you should expect is increments of operating leverage typically on an ongoing basis. But more of the profitability growth from GWS comes from the revenue growth and from margin expansion. We're getting a good bit of margin expansion this year. Some of that is coming from we've had multi year projects that I mentioned around system integrations.
We've acquired a number of large global companies. We've had a few years of system integrations globally. That work is now completing, so some of the cost is coming down and we're getting the benefits from having those systems. So you won't get that kind of we're not likely to achieve that kind of margin expansion typically year over year. But you could also see that our business as our business mix has changed quite a bit, our EBITDA margins have been relatively stable.
So what you're seeing there is on average, some incremental margin lift year to year within a given line of business.
Next. Open ended question. When you across your business lines, if you lose a customer, you lose business, can you just talk high level about why that might be?
You know what, I'm going to ask Bill to comment on why we would lose an outsourcing client and then Mike to comment on why we might lose an advisory client.
Thank you.
Go ahead, Bill.
Well, we don't lose too many. I'll say that to start. Thankfully, we try really hard not to who asked the question, I'm sorry. Yes. I'll answer the question this way.
When you go back to the slide I showed around customer sat, 95% customer satisfied. That means 5 today are yellow. They're not red, but they're yellow. And when they tell us they're yellow, it's one of 3 things. The chemistry with the Alliance Director, that account manager that's so critical, the picture that Darcy showed to Richard Hughes, it's not working.
It's not working. They're losing some of the trust relative to that individual. Number 2, there's something in the contract that's creating some conflict. And the third thing is that we hear and we don't hear this third thing too much in the last few years, but we heard it in previous years, they're not seeing enough of the power of the platform of CBRE show up on their account. That gets back to the account manager.
Got Mike?
On the advisory side, it can be a host of things and we certainly aren't perfect. We don't win everything we pursue, but our win rates are extremely high. On the property management side, we often you could lose to a self performing REIT. So a buyer comes along, they buy a building, we lose, it turns over because they self perform. That's just a dynamic in that business.
It's very real. On the transactional side, you're oftentimes, you can ask the question, were we prepared enough? Did we have the right team? Did we bring the full power of the firm? Was the individual pursuing that deal, leveraging all that you heard about today?
And if they weren't, then it's going to increase the odds of the loss. If they were, those odds go way up. So I really think it's about getting the right team and making sure you leverage all the things that you've heard of here. And if we do that right, our win rates are extremely high.
Danny, why don't you talk about why we would lose a client either for Trammell Crow Company or Global Investors?
Sure. With regards to the Real Estate Investment segment and Global Investors in particular, if we were to lose a client, it would typically be for two reasons. First would be investment performance against a comparable relative benchmark. And the second would just be a change in their overall investment strategy. So that's typically what would happen if we were to lose a client, which is rare and obviously we try and not have that take place.
For Chatham and Crowe, it's a bit different. Most often because of those returns and because of the long standing relationships, it's rare. But if it does happen, it's typically because there's a change in that investment strategy and that investor does not want to take on the development risk in order to take on that kind of risk adjusted return. So they shift their focus to something else that's perhaps more conservative.
We got time for a couple more.
I have Brian Baldwin here. I think the presentation was great in terms of talking about the benefits of scale and having this globally integrated platform across products and geographies. As you continue to grow, what are some of the challenges and pressure points you have in terms of managing that scale and preserving the culture that you have currently?
I would say something that we're really focused on and I talked about our management team is as we get big, extracting the benefits of size without burdening ourselves with bureaucracy. Bureaucracy does a couple of things. It's expensive and it's demoralizing to the team. And when we reorganized last year, one of the goals we had around the world and across our product lines was to focus on getting rid of bureaucracy, of course, getting rid of the cost that goes with it. But the side benefit is escalating employee morale.
That's a really big deal. Our employees don't like bureaucracy. So, we focus on that a lot. This management team is very riveted on that.
Managers are facing fee pressure from ETFs and the popularity of index funds. Just curious what type of pressure is CDRE Global Investors facing?
Absolutely great question. We are facing fee pressure. However, when you have established client base, established products, we really maintain our fee level as best we can. There are times when we have to consider doing something for a lower fee, but typically it's because of something that's quite strategic for a reason that we would take on something for a lower fee. Also because we're launching some new products that are new in the marketplace with a new client base, we are facing some fee pressures.
But typically, we've been able to stand up against it because of our teams, our existing products and our track record. So we're seeing it, but we're standing firm against it.
During the presentations, that's me, you talked a lot about for profit organizations. Is outsourcing also, yes, important for the nonprofit organization worldwide? And do you focus on that as well?
I'm not sure I understood the question because you asked it
Well, you gave a lot of examples on outsourcing trends within for profit organizations. But are you also targeting, for example, governmental organizations? Yes.
We do in the UK for example, we do work with universities, hospital systems, governmental agencies. We do work with governmental agencies across the United States, all over the world. LFM, particularly focused on working with site specific, the British Museum of Art and History or a large healthcare institution. In the U. S, we have quite a nice business around healthcare of managing acute care hospitals, some for profit, some not for profit.
So we're definitely that's one of our 8 vertical markets that we go after from a sales and client solutions point of view. What does that look like? Local Facilities Management, it's the technical local facilities management.