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Two major commercial-property services firms reported stronger third-quarter revenue Wednesday, but their outlooks showed that better leasing activity has not removed the uncertainty around real estate transactions.
Cushman & Wakefield posted 15% leasing revenue growth and 18% capital-markets revenue growth. Colliers reported higher revenue in all three of its business segments, while cutting its full-year growth outlook because of geopolitical uncertainty and interest-rate volatility.
Cushman gains from leasing and property services
Cushman & Wakefield’s quarterly revenue rose 8% to about $2.8 billion, according to its earnings release. Services revenue increased 5%, helped by facilities-management client wins and expanded mandates.
Leasing growth was led by the Americas, where revenue rose 19%. The company cited continued demand for high-quality office and industrial assets, including data centers. Americas capital-markets revenue increased 24%, supporting the 18% increase for that service line globally.
Net income was $52.1 million, up 1%. Diluted earnings per share remained at 22 cents, while adjusted earnings per share rose 28% to 37 cents. The company maintained its full-year forecast for adjusted earnings-per-share growth of 18% to 23%.
Those adjusted earnings exclude items specified by the company and are not the same as its reported accounting earnings.
Colliers grows, but trims the year ahead
Colliers reported revenue of $1.64 billion, up 12%, in its third-quarter announcement. Adjusted earnings per share rose 20% to $1.97. GAAP diluted earnings per share fell to 14 cents from 82 cents, and GAAP operating earnings declined to $100.8 million from $104.7 million. The company cited higher acquisition-related contingent consideration charges in discussing operating earnings.
Commercial real estate revenue rose 5% to $994.8 million. Capital-markets revenue increased 9%, led by the Americas and Europe, the Middle East and Africa, while leasing revenue grew 6%. Colliers said transaction activity slowed late in the quarter as interest-rate volatility increased.
Engineering revenue grew 33% to $497.6 million, reflecting recent acquisitions and internal growth. Investment-management revenue rose 6% to $145 million. Companywide internal revenue growth in local currencies was 3%, illustrating that the 12% headline growth rate was not all organic.
Colliers reduced its 2026 outlook for revenue, adjusted EBITDA and adjusted earnings-per-share growth to the low teens, from the mid teens. The forecast excludes further acquisitions and remains subject to economic and market conditions.
A recovery with uneven visibility
The reports point to active leasing and property-services demand alongside a less certain transaction pipeline. Cushman’s unchanged adjusted-profit outlook contrasts with Colliers’ more cautious view of the remainder of the year.
These are company results, not a census of every office market or property owner. They show where two large intermediaries are generating fees, while also making clear that stronger revenue and rising adjusted profit can coexist with flat or lower reported earnings.
JBizNews Desk | New York
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