The team at JLL has predicted a tough end to the year for the agency’s capital markets business, but said the eventual recovery should be strong.
Discussing the firm’s third-quarter results with analysts, chief financial officer Karen Brennan said the Americas and EMEA had led a fall in the global capital markets pipeline, where JLL’s revenue of $595.2m (£531.5bn) was down by 8% year-on-year in Q3.
“We saw notable deceleration in September compared to July and August,” Brennan said. “Considering… a tougher growth comparison to a year ago, we expect the decrease in fourth-quarter fee revenue in capital markets to be more pronounced than in the third quarter.”
Chief executive Christian Ulbrich added that the amount of money held by investors now sitting on the sidelines meant an eventual recovery should be robust.
“Even with transaction volumes likely to remain low over the next couple of quarters, our team is laying the foundation for a strong rebound. Dry powder remains at near record levels, and once interest rates stabilise and price discovery comes to an end, investors are eager to deploy capital into the market.”
To send feedback, e-mail tim.burke@eg.co.uk or tweet @_tim_burke or @EGPropertyNews
