CB Richard Ellis net drops but beats Wall Street

* Q3 net income falls 65 pct

* Results beat Wall Street forecast

* Shares close down nearly 10 pct, up slightly after hours

(Adds stock price, geographic segment breakdown)

NEW YORK (Reuters) - CB Richard Ellis Group Inc (CBG.N), the world's largest commercial real estate brokerage, said quarterly net income fell 65 percent, but results still beat Wall Street's estimates.

Third-quarter net income fell to $40.4 million, or 19 cents per share, from $114.9 million, or 48 cents per share, in the year-earlier quarter, the company said on Thursday.

Excluding acquisitions-related costs, severance pay and other one-time items, the CB Richard Ellis would have earned $56.1 million, or 27 cents per share, ahead of the 23 cents per share analysts on average had forecast, according to Reuters Estimates.

The lack of credit globally has ground building sales to a near halt and slowed leasing by about 5 percent, particularly in the United States and the United Kingdom, the company said. It also hurt incentive-based revenues in the company's global investment management business. The unit manages real estate investments for pension funds and other institutional investors.

Revenue fell to $1.3 billion, ahead of the $1.15 million analysts had expected, according to Reuters Estimates. A year earlier the Los Angeles-based company generated $1.5 billion.

"Our third quarter results reflected the extremely challenging market conditions, which continued to deteriorate globally," chief executive Brett White said in a statement. "However, we performed reasonably well considering the extent of negative conditions in the marketplace."

The company said that, so far, it has cut $190 million in permanent run rate expenses, which include layoffs.

The company's real estate outsourcing business, which oversees real estate needs for large global companies, saw revenue rise 30 percent. The sector's revenue as part of total revenue has been growing as the mainstay revenue generators of brokerage fees from building sales and leasing has contracted.

In the Americas region, which includes the United States, Canada and Latin America, revenue fell 10.8 percent to $816.2 million. In Europe, Middle East and Africa, revenue fell 15 percent to $271.7 million. In its Asia-Pacific business, revenue rose 5.2 percent to $141.5 million.

In the Global Investment Management segment, which consists of investment management operations in the United States, Europe and Asia, revenue fell 59.8 percent to $39.8 million, compared with last year.

In after-hours trading, CB Richard Ellis shares rose to $5.75, above the company's closing price of $5.67 on the New York Stock Exchange, where they fell nearly 10 percent. Since the beginning of the year, the shares are off 73.7 percent, a steeper fall than those of rival Jones Lang LaSalle Inc (JLL.N), which are off 60.5 percent.

(Reporting by Ilaina Jonas; Editing by Andre Grenon)