Strong growth in leasing and facilities management helped CBRE outpace rival JLL in the second quarter of this year.
The world’s largest agent achieved year-on-year revenue growth of 12% to $2.4bn (£1.5bn) in the three months of April to June 2015, compared with a 7.5% rise from JLL to $1.4bn.
Revenues for the first half of 2015 were up by 11% at CBRE to $4.4bn, and by 10% at JLL to $2.5bn.
The difference in growth rates at the two companies was most marked on EMEA revenues.
JLL’s EMEA business saw fee revenues rise by 22% in local currency terms over the second quarter to $327m, driven by the success of its capital markets business. CBRE’s EMEA division achieved revenues of $409m, a growth rate of 33% using the same measures.
The UK, Germany and Spain were the lead markets for both firms across Europe and the Middle East.
CBRE’s operating income for the region was $32.5m, just $500,000 more than its rival over the same period but up by 173% year-on-year.
Capital markets helped both agents drive growth globally, but it was CBRE’s facilities management business that contributed the largest portion of headline revenue growth. Globally, revenue from its FM division was up by 9% to nearly $746m.
CBRE’s FM business has been boosted by the acquisition of Norland in 2013 and Global Workspace Solutions from Johnson Controls in March.
JLL saw its FM division’s revenue rise by 2% over the quarter to $740m. Its slower growth rate was attributed to poor performance in Europe, where revenues shrank by 21% to $69.7m.
The reverse was true of the agencies’ investment management platforms. LaSalle Investment Management’s revenues rose by 14% to more than $80m by the end of the quarter. CBRE Global Investment Management’s revenues shrank by 25% to just over $94m.
Both businesses generated greater profits year-on-year across the groups’ business areas, with net income at CBRE up by 18% year-on-year to $140m, boosting earnings per share to 42 cents. JLL’s net income rose by 21% to $92m. Earnings per share were $1.98.
