Power Brokerages: How Did CBRE, Colliers Fare In Q2?
Industry leaders CBRE and Colliers International aren't known as top dogs in the industry for nothing. Both firms posted second-quarter profits and strong revenues in the quarter ended June 30. Take a closer look at how the brokerages performed in Q2 2016.
CBRE Q2 Results
CBRE's adjusted net income for the quarter ended June 30 rose 25% to $174.9M, compared to the year-ago quarter, while revenue rose 34% to $3.2B.
The company's largest segment—its Americas business—increased 24% in revenue. But the largest leap was its business in Europe, the Middle East and Africa, which saw revenues rise 64%.
CBRE chief executive Bob Sulentic (above) said in the company's financial report this week that much of the firm's strong results stem from its occupier outsourcing and mortgage services business.
CBRE became a force to be reckoned with in the facilities management business last September when it dropped $1.48B in cash to acquire Global Workplace Solutions—a company that provides facility management and energy efficiency services to corporate clients—from Johnson Controls.
The brokerage's occupier outsourcing business continued to exhibit strong growth in Q2, and revenue rose by 105%—aided by the acquisition. Of the 96 global contracts the company has under its belt, 37 were signed with new clients this quarter.
"Our business has performed very well in the first half of 2016," Bob said in the quarterly report. "It is important to note that market fundamentals in commercial real estate remain in good shape—with the impact of Brexit largely limited to property transaction activity in the UK."
Colliers Q2 Results
Colliers' revenues were up 18% to $485.5M in Q2, and adjusted income came out to $21.4M, a boost after reporting a loss this time last year, the Associated Press reports.
The global operator's strongest segment—the Americas—accounts for 55% of its business. The region brought in $263M in revenues this past quarter, with operations in Europe, the Middle East and Asia following with $117.2M in revenues.
On another note, the AP reports the company's shares have declined by 16% since the beginning of the year.
Throughout the quarter, the company has been expanding its operations in Florida, Michigan and New York in hopes of boosting its operations and services in local markets throughout the country.
"Colliers delivered excellent results in the second quarter despite key operation currencies declining against the US dollar," CEO Jay Hennick said in the earnings report. "Strong internal growth continued in most major markets, especially in the Americas region."