CBRE and JLL flex their global muscles
TWO of Birmingham’s best known property consultancies have demonstrated their financial strength with the release of impressive results from their US-based head offices.
CBRE has reported global revenue for the second quarter totaled $1.6 bn, an increase of 13% from $1.4bn in the second quarter of 2011.
And Jones Lang LaSalle reported second quarter revenue of $921m, an increase of 9%.
Los Angeles-based CBRE Group saw global revenue rise during the quarter in every business line. Its capital markets businesses performed very well, particularly in the Americas, while global property sales revenue increased 16%, with all regions showing improvement.
Company chief executive Brett White said: “CBRE’s key strengths – people, brand and diverse platform – served us well amid elevated global economic uncertainty during the second quarter.
“Despite tepid economic growth around the world, we once again produced double-digit revenue gains, with notably strong performance in the Americas, solid growth in Asia Pacific, and increased contributions from our global investment management operations.
“As we execute our growth strategy, we continue to be highly focused on cost discipline as well, which also contributed to significant bottom-line improvement during the quarter.”
Global investment management operations continued to make significant contributions to the company’s overall performance, bolstered by the ING REIM acquisitions in the second half of 2011. Revenue from this business line more than doubled compared with a year earlier and, overall, global investment management accounted for 7% of total company revenue.
Martin Guest, managing director of CBRE’s Birmingham office, said: “Despite the challenging economic conditions, the Birmingham office increased its overall market share in 2011.
“Our office team won two trophy instructions, Two Snowhill and the Mailbox, whilst our industrial team is acting on most of the region’s key schemes and in 2011 advised on the largest ever letting of a speculatively built shed to Amazon, at Gazeley’s G-Park.
“Going forward, our capital markets team will work to build on a solid 2011 and, following our hire of Ed Gamble, we hope to announce further senior hires in 2012.”
Chicago headquartered Jones Lang LaSalle, meanwhile, not only saw a 13% global revenue hike but managed to pay off net debts of $66m during the second quarter.
Colin Dyer, president and chief executive officer, said: “We produced solid second-quarter and year-to-date results in a cautious market environment.
“We continue to take market share and maintain tight cost discipline as we enter the important second half of the year.”
Capital markets and hotels revenue grew by 17% during the quarter.
JLL saw consolidated year-to-date revenue rise to $1.7 bn, 13% higher than the first six months of 2011. Fee revenue for the first six months of 2012 was $1.6bn, an increase of 11%.
Jan Thompson, Jones Lang LaSalle’s Midlands chairman (left), welcomed the results, but conceded that investment returns from across the UK’s property markets continued to show a marked divergence between prime and secondary assets.
“It’s a trend we’ve seen for some time in the Midlands, and there is absolutely no doubt that it will continue until there is a significant upturn in the market,” he said.
“There are major challenges for landlords and property-owners holding secondary space, and many of them will face tough decisions in the coming months, about how best to generate acceptable returns.”
