JLL has posted double-digit revenue growth over the third quarter, but has joined other big agencies in reporting a notable drop in capital markets work as the economic downturn bites.
Revenue of $5.2bn (£4.5bn) during the three months to 30 September was up 10% year-on-year in local currency, with fee revenue 4% ahead at $2bn, although profit dropped by 30% to $202.6m.
Capital markets revenue dropped by 8% in local currencies to $595.2m. “During the latter half of the quarter, the commercial real estate industry experienced a more rapid slowdown in capital markets volumes than was expected three months ago,” said chief executive Christian Ulbrich. “In the current environment, the time to close deals has elongated and bid-ask spreads have widened.”
Ulbrich pointed to the agency’s Work Dynamics division, which advises companies on workplace strategies and project management, as “one of our more resilient segments” – there, revenue was up 16% at almost $3.3bn, while JLL Technologies posted growth of 47% at $56.5m. Market advisory revenue was 6% ahead of a year ago, at $1.1bn.
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