CBRE has posted a 20.3% increase in revenue to $6.8bn (£5bn) in the third quarter of 2021, with a massive rebound in activity in its advisory business fuelling the growth.
Revenue in the agent’s advisory division was up by 48% compared with Q3 2020, when revenue totalled “just” $1.6bn. In Q3 2021, revenue had rebounded to $2.4bn.
CBRE said that revenue growth was “very strong”, with all business lines exceeding Q3 2019 levels. The firm added that cost-saving actions taken in 2020 had enabled it to deliver a more than 80% increase in operating profit in its advisory business up to $522m from $287m in 2020.
Capital markets activity led the segment’s recovery. Global property sales revenue rose by 93% on Q3 2020 and exceeded the third-quarter 2019 peak levels by 27%.
Leasing activity also continued to revive, with global leasing revenue up by 58% on Q3 2020 and 7% on the same period in 201.
CBRE’s Global Workplace Solutions business posted an 8% rise in revenue to $4.2bn, with operating profit up by 16.5% to $187m, while the firm’s real estate investments segment recorded a 32% hike in revenue to $224m.
Global real estate development operating profit almost doubled to around $100m, fuelled by a strong pace of industrial asset sales at high valuations, said CBRE, while its in-process development portfolio ended the quarter at $16.8bn – a record level for the company and up by $1.6bn Q2 2021.
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