Commercial Property Firms: Barometers of the Market Recovery
Investors Business Daily reports: “Revenue grew 18% at Jones Lang [LaSalle] and 23% at CB Richard [Ellis] in the second quarter vs. a year ago. That was better than the first quarter and far stronger than late ’09, when early signs of a revenue uptick appeared.”
According to the logic of Marilyn Alva at Investor’s Business Daily, these increases in revenue are actually meaningful in that they signal, “commercial real estate is starting to get its pulse back – in stronger leasing volume, more property-management work and increased investment sales.” In other words, when the brokers are making money, it must be the case that market activity is beginning to recover.
CB Richard Ellis CEO Brett White modestly responded by stating that, “We’re in an early recovery…after the recovery gets going and the economy gets its steam you move into a long-term expansion.” Rents remain low after a year of extremely low demand, and those with commercial leases are looking to take advantage now that its clear the market has passed its low-point. Mr White’s firm has reported over 30 financial services firms in New York that have increased the amount of space they occupy through leases.
The rise in revenues at the largest brokerage firms also reflects the recent rise in pricing of commercial real estate that has come from confidence in the sector’s recovery. Dan Fasulo, Real Capital Analytics’ managing director, states in the article that he has “seen values skyrocket the last six months, especially in the major international cities.” All-in-all, positive signs for commercial real estate owners and investors.
View the full article on Investors Business Daily: Commercial Property Firms: Barometers of the Market Recovery
Articles related to this topic:
Buy Commercial Property as US Bonds Reach Record Lows
Hotel Sales Outperform as Travel Picks Up
Return of the Billion-Dollar Asset in NYC Tests Buyer Confidence, Capital
Multifamily Sector Pulls Ahead of the Pack
New Par for the Course? Two Sixth Avenue Properties Could Fetch Impressive Pricing
Rising Activity Reflected in Profit Gains at Commercial Property Firms
Tracking the Rapid Return of Commercial Property Lending
Posted by: Nina Turner