To be a leader in the booming data center sector, firms need more than the requisite real estate, which CBRE has acknowledged with a ten-figure acquisition.
The Dallas-based real estate brokerage firm paid $1.2 billion to acquire Pearce Services from alternative investment manager New Mountain Capital, Bisnow reported. The deal closed only a few weeks after CBRE alluded to a potential acquisition of this magnitude during its earnings call.
“This acquisition complements our large and growing presence in digital and power infrastructure,” CBRE chief executive officer Bob Sulentic said in a statement.
Pearce provides design, engineering, maintenance and repair services for power and telecommunications companies, servicing data center and infrastructure assets. Those services are critical for an asset type that has such a large energy demand as well as concerns about impact on local communities.
For this year, CBRE estimates more than a third of Pearce’s business will come from working with critical power and cooling systems. A large portion will also come from renewable energy, power storage and wireless and fiber network services.
Pearce is expected to generate $660 million in revenue next year, according to CBRE. Meanwhile, the brokerage brought in $700 million in revenue from its data center services in the third quarter, a 40 percent rise year over year. CBRE’s total third-quarter revenue was $10.2 billion.
This is at least the second notable acquisition of the year for CBRE.
At the beginning of 2025, the firm agreed to acquire the remaining 60 percent stake of coworking company Industrious several years after an initial investment. The deal valued Industrious at approximately $800 million.
Lincoln Property Company recently bought a 191,000-square-foot data center in one of the nation’s biggest markets for the asset class, where vacancy is under 2 percent.
The Dallas-based company bought the data center at 2500 West Frye Road in Chandler and a substation on-site from CBRE Global Investment for $130 million. The price amounts to $681 per square foot or $4.6 million per megawatt.
— Holden Walter-Warner
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