Amy Regal, Director
GRS | Title
(216) 571-7013
[email protected]
Cushman & Wakefield is apparently going public.
Reports have the commercial real estate brokerage firm seeking to gather about $765 million, which would value the company at $3.57 billion, and share prices would be between $16 and $18 per share. Bisnow reports that there were revenues of $7 billion for the company last year.
That being the case, let’s look at the three largest publicly traded commercial real estate brokerage firms’ financial results.
CBRE
The biggest commercial real estate brokerage firm had strong first-quarter results. Revenue jumped 15 percent hitting $4.7 billion, while net income shot up 10 percent, hitting $150.3 million at the Los Angeles-based firm. Its strongest growth was in the Asia Pacific region, which saw revenues 23 percent, with particular strength in India and Japan. The Americas saw a growth of eight percent.
Meanwhile, property sale revenue was up 15 percent, commercial mortgage revenue increased 27 percent and leasing revenue rose eight percent as did valuation revenue. CBRE has $104.2 billion in properties under management and a development services portfolio of $7.7 billion.
JLL
Chicago-based JLL saw a 10-percent revenue jump during its first quarter, hitting $3.6 billion, while net income soared to $40.3 million from $7.2 million during the same year-ago period, mainly due to a strong performance in the Americas region and property disposition fees.
The highest revenue increase by region was in the EMEA (Europe, Middle East, and Africa) area, which saw a 15 percent jump. Overall, JLL has $59 billion in assets under management. Meanwhile, JLL’s Spark division in June launched a $100-million global fund to invest in tech companies that deal with commercial real estate.
Colliers International
Colliers, which is based in Toronto, also had a strong first quarter (download here). Revenues increased 18 percent, to $552.5 million, while earnings per share jumped 25 percent. All three global regions where it does business saw double-digit revenue increases, led by the Americas, which rose 15 percent.
In the last year, the company has acquired firms in Europe, including one in Demark in July. Colliers also bought out Coldwell Banker Commercial Advisors, in Salt Lake City, in April, increasing its capabilities throughout Utah.
With its peers performing so strongly, it seems as though the public markets will likely be kind to Cushman.
About GRS Group:
GRS Group is a leading provider of commercial real estate (“CRE”) services worldwide. With offices across the United States, Europe, and affiliates around the globe, GRS Group provides local market knowledge with a global perspective for institutional real estate investors, occupiers and lenders worldwide. The GRS Group team has evaluated and advised on over $1 trillion in CRE transactions.