New York: Two of the world's largest commercial real estate services firms have reported sharply improved earnings, fuelled chiefly by a pickup in building sales and leasing, particularly in the US.
US commercial real estate has been struggling since it began to weaken in late 2007, with activity falling precipitously last year.
That hurt commercial real estate firms such as Jones Lang LaSalle Inc. and CB Richard Ellis Group, which rely heavily on sales and leasing commissions.
However, during the second quarter, sales of investment-grade US commercial real estate rose 32 per cent over the first quarter to $20.6 billion (Dh75.65 billion), according to preliminary data by real estate research firm Real Capital Analytics, which measures sales greater than $5 million.
Recovering markets
"In the US, we saw a very strong pickup in property sales and leasing, reflecting recovering market conditions," Brett White, CB Richard Ellis chief executive, said in a statement.
His company posted a second-quarter profit $54.8 million compared with a loss of $6.6 million a year ago.
Excluding one-time charges related to acquisitions, severance, space consolidations, and impairments, the Los Angeles-based company earned $58.8 million, according to Thomson Reuters I/B/E/S. Revenue rose 23 per cent to $1.2 billion in the second quarter.
Revenue from the Americas region rose 20 per cent to $722.3 million.
Rival Jones Lang LaSalle reported a second-quarter profit of $32 million.
