Commercial real estate brokerage Newmark posted strong first-quarter earnings numbers, in part due to increased activity in the office leasing market.
:quality(75))
The company reported $846.5M of total revenue in Q1, up more than 27% year-over-year. It said this growth came from increased revenue in increasing servicing, management, leasing fees and capital markets.
Newmark's leasing fees rose 20.2% to an all-time first-quarter high, the company said in its earnings release, attributing it to “markedly higher office volumes.”
This strong leasing volume included “several high-profile artificial intelligence and technology companies,” Newmark said. Other office players like landlord BXP have also cited AI leasing demand as leading to Q1 growth.
Newmark specifically cited the New York City, San Francisco Bay Area and Texas markets as experiencing strong leasing activity last quarter.
Newmark CEO Barry Gosin said on the company's quarterly earnings call Thursday it also sees positive signs in the industrial leasing market.
“We expect leasing activity to benefit from normalizing return to office trends and improving industrial leasing fundamentals in the U.S. and U.K.,” Gosin said on the call.
Revenue from capital markets jumped 45.5% from Q4, marking the 10th quarter in a row of double-digit growth, as transaction volumes on that front expanded by 67.6%. Newmark attributed this primarily to increased client activity in the senior housing sector.
The company's revenues from management, servicing and other fees grew by 21.2%, led by a strong performance from the valuation and advisory group.
“Given the strong start to the year and our healthy transaction pipeline, we are raising our full year outlook and expect Newmark to deliver double-digit top- and bottom-line growth for the third consecutive year in 2026,” Gosin said in a statement.
The company's full-year revenue projection range is now $3.775B to $3.875B, up from the previous range of $3.7B to $3.8B.
Newmark's Q1 net income came in at $19.6M, which was up 324% year-over-year but down from $92.9M in the last three months of 2025.
The report sparked a sense of optimism from the Newmark analysts at Piper Sandler, who hailed Newmark's earnings as evidence of a broader commercial real estate upswing.
“While the macro uncertainty captures headlines, the lack of supply, tenants needing advice on tech and AI changes, 2021 low-cost debt refinancings, and global teams that bring about more occupier relationships remain active as ever,” Piper Sandler said in a note on Newmark's report.
Newmark's share price was up 2.2% when the market closed Thursday.
UPDATE, APRIL 30, 6 P.M. ET: This story has been updated with comments from Newmark's earnings call.
)
)
)
)
)
)
)
){kind=logo}
)
)
)
)