Exhibit 12

CB RICHARD ELLIS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

 

    Year Ended December 31,     Nine Months Ended September 30,  
    2005     2006     2007     2008     2009     2009     2010  

Income (loss) from continuing operations before provision for income taxes

   $ 358,385      $ 523,017      $ 592,389      $ (1,025,679 )    $ (645 )    $ (77,611 )    $ 141,331   

Less: Equity income (loss) from unconsolidated subsidiaries

     38,425        33,300        64,939        (80,130 )      (34,095 )      (18,252 )      11,333   

Income (loss) from continuing operations attributable to non-controlling interests

     2,163        6,120        11,875        (54,198 )      (60,979 )      (47,819 )      (26,962 ) 

Add: Distributed earnings of unconsolidated subsidiaries

     24,997        29,384        117,196        23,867        13,509        7,838        14,065   

Fixed charges

     103,995        120,963        220,213        236,533        278,379        214,055        194,806   
                                                       

Total earnings (loss) before fixed charges

   $ 446,789      $ 633,944      $ 852,984      $ (630,951 )    $ 386,317      $ 210,353      $ 365,831   
                                                       

Fixed charges:

              

Portion of rent expense representative of the interest factor (1)

   $ 40,328      $ 42,109      $ 57,222      $ 69,377      $ 59,978      $ 48,509      $ 44,984   

Interest expense

     56,281        45,007        162,991        167,156        189,146        136,291        149,822   

Write-off of financing costs

     7,386        33,847        —          —          29,255        29,255        —     
                                                       

Total fixed charges

   $ 103,995      $ 120,963      $ 220,213      $ 236,533      $ 278,379      $ 214,055      $ 194,806   
                                                       

Ratio of earnings to fixed charges

     4.30        5.24        3.87        N/A (2)      1.39        0.98 (3)      1.88   
                                                       

 

(1) Represents one-third of operating lease costs, which approximates the portion that relates to the interest portion.
(2) The ratio of earnings to fixed charges was negative for the year ended December 31, 2008. Additional earnings of $867.5 million would be needed to have a one-to-one ratio of earnings to fixed charges.
(3) The ratio of earnings to fixed charges was less than one for the nine months ended September 30, 2009. Additional earnings of $3.7 million would be needed to have a one-to-one ratio of earnings to fixed charges.