CBRE CBRE Group, Inc.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2016 AND 2015

The following description of the CBRE 401(k) Plan (the “Plan”) provides only general information.  Participants should refer to the Plan document and related amendments for a more complete description of the Plan’s provisions.  The Plan is sponsored by CBRE Services, Inc. (“CBRE Services” and “Plan Sponsor”), which is a subsidiary of CBRE Group, Inc. (“CBRE Group”).  CBRE Services, CBRE Group, and other subsidiaries of CBRE Group are hereinafter referred to collectively as the “Company.”

On September 1, 2015, CBRE, Inc., a wholly-owned subsidiary of CBRE Services, acquired the Global Workplace Solutions (“GWS”) business of Johnson Controls, Inc. (“JCI”), which we refer to as the GWS Acquisition.  All acquired GWS employees meeting the Plan’s eligibility requirements may participate in the Plan.  In connection with the GWS Acquisition, the Plan was amended to: (1) provide additional company matching and retirement income contributions for twelve months subsequent to September 1, 2015, the GWS acquisition date, for certain employees acquired in connection with the GWS Acquisition; and (2) allow union members to participate in the Plan when required by a collective bargaining agreement.  The additional company matching and retirement income contributions were intended to provide certain GWS participants with comparable benefits that they would have received under the retirement plans of JCI.  These additional contributions aggregated $6,907,236 during the twelve months ended August 31, 2016 and vest in accordance with the Plan’s vesting schedule, with years of service with JCI prior to the GWS Acquisition counting towards vesting under the Plan.

General— The Plan is a defined contribution savings plan, which provides retirement benefits for eligible employees of the Company who elect to participate.  The Plan became effective on April 19, 1989 and was amended and restated as of January 1, 2014.  Most of the Company’s non-union U.S. employees, other than qualified real estate agents having the status of independent contractors under section 3508 of the Internal Revenue Code of 1986, as amended (“IRC”), are eligible to participate in the Plan.  The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

Plan Amendments— The Plan has been amended several times since its inception.  The most recent amendment, effective January 1, 2016, primarily clarified and updated certain provisions and did not have a material impact on the Plan.

Administration— The Plan is administered by the Administrative Committee (the “Committee”) appointed by the Chief Executive Officer (“CEO”) of the Company.  The Committee has been given all powers necessary to carry out its duties, including, but not limited to, the power to administer and interpret the Plan, monitor the performance of the Plan investment funds and make recommendations to the CEO for vendor changes.  Merrill Lynch, Pierce, Fenner & Smith, Inc. (“Merrill Lynch”) is the Plan’s recordkeeper.

Trustee— Bank of America, N.A. (“Bank of America”) serves as trustee for all the Plan’s assets with the exception of the life insurance policies (see Note 5).  CBRE Services serves as trustee for the life insurance policies.

Eligibility— All salaried, hourly and W-2 commissioned employees on the domestic payroll of CBRE Services, or any other domestic subsidiary that participates in the Plan, are eligible to participate in the Plan as of the first date, or any succeeding entry date, following the date the employee is credited with one hour of service.  However, the following employees, or classes of employees, are not eligible to participate: (1) employees that are non-resident aliens with no U.S. source income; (2) employees covered under a collective bargaining agreement that does not expressly provide for participation in the Plan; (3) employees classified as “leased employees” or independent contractors, even if subsequently determined to be common law employees; (4) employees on military leave in the service of the armed forces of the United States; (5) employees covered by another CBRE tax-qualified plan; or (6) persons classified as qualified real estate agents having the status of independent contractors under the IRC.

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CBRE 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2016 AND 2015

Empl oyee Contributions — Participants in the Plan may elect to contribute from 1% to 75% of their eligible pre-tax compensation through payroll deferrals, subject to certain IRC limitations.  The Committee and the IRC may limit the percentage of eligible compens ation that highly compensated employees may contribute.  Participants are also allowed to contribute amounts distributed from other tax-qualified plans to the Plan.  Participants may invest up to 25% of their Plan accounts in the CBRE Stock Fund, which is a unitized fund that includes shares of the Company’s common stock and interest-earning cash for pending transactions and includes accruals for income earned and benefits payable.

Employer Contributions— The Plan allows the Company to make matching contributions to the Plan.  For the year ended December 31, 2016, the Company matched its employee’s contributions up to 50% of the first 6% of the employee’s annual compensation (up to $150,000 of compensation), which match amounted to $46,426,963 in the aggregate.  For the year ended December 31, 2015, the Company matched its employee’s contributions up to 50% of the first 5% of the employee’s annual compensation (up to $150,000 of compensation), which match amounted to $32,815,238 in the aggregate.

The Company also made special matching contributions aggregating $4,360,927 and $2,546,309 during the years ended December 31, 2016 and 2015, respectively, in connection with the GWS Acquisition.  Additionally, the Plan provides for discretionary profit-sharing contributions by the Company for certain employees of CBRE Clarion Securities, LLC (“CBRE Clarion”), which amounted to $86,400 and $198,800 for the years ended December 31, 2016 and 2015, respectively.

Participant Accounts— Each participant’s account is credited with the participant’s contributions, an allocation of Company contributions and investment earnings (or losses) thereon, and charged certain administrative expenses.  Allocations of earnings are based on participant account balances in an investment.  The overall benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

Vesting— Participants are immediately vested in all voluntary contributions, participant rollover contributions from other qualified plans and earnings (or losses) thereon, as well as the Company matching contributions in participants’ accounts as of December 31, 2006.  Effective January 1, 2007, Company matching contributions vest 20% per year over five years, and participants become immediately fully vested in Company matching contributions upon reaching age 65, permanent disability or death, in each case if employed by the Company at that time.  There are three exceptions for vesting in Company matching contributions:

Upon termination of employment with the Company, participants forfeit any portion of Company contributions that has not yet vested.

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CBRE 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2016 AND 2015

Forfeit ed Accounts — Forfeited accounts are invested in a money market fund and included in participant-directed investments in the accompanying Statements of Net Assets Available for Benefits.  These accounts are used to pay expenses of the Plan or to reduce futur e Company contributions.  During the year ended December 31, 2016, accounts totaling $1,676,552 were forfeited and $1,665,583 was used to reduce Company contributions.  During the year ended December 31, 2015, accounts totaling $1,087,153 were forfeited an d $1,092,309 was used to reduce Company contributions.  As a result, at December 31, 2016 and 2015, forfeited nonvested account balances totaled $18,296 and $7,327, respectively.

Payment of Benefits and Withdrawals— Participants are entitled to the balance of their vested accounts upon retirement, termination of employment, disability or death.  The Plan also provides for withdrawals due to hardship, subject to certain limitations, from rollover accounts, and after attaining age 59½.  Distributions are primarily made in a single lump-sum cash payment equal to the balance of the participants’ accounts.

Notes Receivable from Participants— Participants may elect to borrow from their accounts up to a maximum of $50,000, not to exceed 50% of their vested account balance.  Loan transactions are treated as transfers between the investment fund and the loan fund.  Participant loans are to be repaid through payroll deductions over a period generally not to exceed five years.  The loans are secured by the balance in the participant’s account and bear interest at a rate as determined by the Committee.  Outstanding loans at December 31, 2016 and 2015 have interest rates ranging from 3.25% to 10.25% and mature on various dates through November 2023.

Cash— The cash balances represent: (1) contributions received from participants but not yet allocated to participant-directed investments; and (2) funds from liquidated participant-directed investments that still remain payable to participants.

Accounting Pronouncements Adopted in 2016— During 2016 the Plan adopted Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent),” the portion of ASU 2015-10, “Technical Corrections and Improvements” applicable to the Plan, and ASU No. 2015‑12, “Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient.”   Adoption of these ASUs required that certain 2015 balances on the statement of net assets be retrospectively reclassified and the related disclosures be revised to conform to the 2016 presentation in addition to the removal of disclosures no longer required.  Adoption of these ASUs did not have a material impact on the Plan’s financial statements.

Basis of Accounting— The accompanying financial statements have been prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States (“GAAP”).

Investment Valuation and Income Recognition— The Plan’s investments are stated at fair value.

Shares of mutual funds are valued at quoted market prices.

Investments in the common/collective trusts are valued at net asset value (“NAV”) per share.

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CBRE 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2016 AND 2015

A portion of the Plan is invested in shares of CBRE Group’s common stock, which is valued at its quoted market price on the New York Stock Exchange.  The value of CBRE Group’s common stock was $31.49 and $34.58 per share as of December 31, 2016 and 2015, respectively, which represented the quoted market price of CBRE Group common stock as of those dates.  The Plan held 1,330,114 and 1,295,747 shares of common stock of CBRE Group, with a cost basis of $24,534,549 and $21,762,730 as of December 31, 20 16 and 2015, respectively.  During the years ended December 31, 2016 and 2015, the Plan did not earn any dividend income from CBRE Group’s common stock.

Life insurance policies are valued at cash surrender value.

Purchases and sales of securities are recorded on a trade-date basis.  Interest income is recorded on an accrual basis.  Dividends are recorded on the ex-dividend date.

Net appreciation (depreciation) in fair value of investments includes realized and unrealized gains and losses on investments sold or held during the year.

Management fees and operating expenses of the Plan’s investment funds are paid by the investment funds.  Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments. A portion of the management fees for certain investment funds is returned to the Plan to pay administrative expenses or be allocated to participants, which practice is commonly referred to as “revenue sharing.”

Revenue Sharing— Total revenue sharing, including interest, was $1,203,118 in 2016 and $1,438,685 in 2015.  Revenue sharing was first used to pay the fees of Merrill Lynch and its affiliates, aggregating $967,410 in 2016 and $837,770 in 2015.  The remainder gets placed in an “ERISA Account.”  The ERISA Account is invested in a money market fund and included in participant-directed investments in the accompanying Statements of Net Assets Available for Benefits.  On December 20, 2012, the Plan was amended to allow for the calculated excess in the ERISA Account, as determined by the Committee, to be allocated to participant accounts pro rata in proportion to their account balances.  As a result, $285,000 and $252,513 was taken out of the ERISA Account and allocated to participant accounts on February 9, 2016 and February 10, 2015, respectively.  In addition, administrative expenses were paid out of the ERISA Account in the amount of $248,618 in 2016 and $305,795 in 2015.  The balance of the ERISA Account was $65,909 and $363,819 as of December 31, 2016 and 2015, respectively.

Notes Receivable from Participants— Participant loans are valued at their amortized cost, which represents the unpaid principal balance plus accrued interest.  Interest income is recorded on an accrual basis.  Related fees are recorded as administrative expenses and are expensed when they are incurred.  No allowance for credit losses has been recorded as of December 31, 2016 or 2015.  If a participant ceases to make loan repayments and the plan administrator deems the participant loan to be in default, the participant loan balance is reduced and a benefit payment is recorded.

Payment of Benefits— Benefits are recorded when paid.

Use of Estimates— The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires the Plan’s management to make estimates and assumptions that affect the reported amounts of net assets available for benefits and changes therein and disclosure of contingent assets and liabilities.  Actual results may differ significantly from those estimates.

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CBRE 401(k) PLAN

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

DECEMBER 31, 2016 AND 2015

Risks and Uncertainties — The Plan invests in various securities, including mutual funds, common/collective trusts and CBRE Group common stock.  Investment securities, in general, are exposed to various risks, such as interest rate risk, credit risk and overall market volatility.  Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of the investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements and accompanying notes.

The Plan invests through mutual funds in the securities of foreign companies, which involve special risks and considerations not typically associated with investing in U.S. companies.  These risks include devaluation of currencies, potentially less reliable information about issuers, different securities transaction clearance and settlement practices, and possible adverse political and economic developments.  Moreover, securities of many foreign companies and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. companies.

Subsequent Events— We have evaluated events subsequent to December 31, 2016 and through June 21, 2017, the date that the financial statements were available to be issued, and determined that there were no subsequent events that would have materially affected the Plan’s financial statements.

The “Fair Value Measurements and Disclosures” Topic of the FASB Accounting Standards Codification (“Topic 820”) defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date.  Topic 820 also establishes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value.  This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.  The three levels of inputs used to measure fair value are as follows:

The classification of fair value measurements within the hierarchy is based upon the lowest level of input that is significant to the measurement.  There were no transfers in or out of Level 1 and Level 2 during the years ended December 31, 2016 and 2015.

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