‘We’ll never settle’: Cushman boss vows to keep pushing the business

Cushman & Wakefield chief executive Michelle MacKay has said the agency will “never settle” as it jostles for new business in preparation for a recovery in the real estate markets – an upturn she said signs of which are increasingly apparent. On a call to discuss full-year results with analysts, MacKay spoke of the “pace of change” at the firm since she took her role last July. Cushman has updated its strategy for the first time since its 2018 IPO, she said, made “tough decisions” around spending, carried out two refinancings and is now looking at ways to reduce its leverage. “And we’re not done,” she added. “We made extraordinary strides last year in a short period of time, operating with rigor, executing with speed and urgency and never settling, continuing to drive the business forward. And we haven’t come this far to stop now. “We will never settle. We are often seen as the scrappy challenger in this market, outthinking others, brave in our decision-making and advice. The people of Cushman & Wakefield proudly lean into today’s market challenges because we don’t run away from our clients’ biggest challenges, we run to them.” Despite a tough 2023 in which the group fell to a full-year loss, MacKay pointed to “green shoots” as the year drew to an end, including rising revenue from leasing activities in the fourth quarter. The agency expects “stable to modest growth” from that business in 2024, she said, supported by “a solid level of lease expirations”. Much of the outlook for this year hinges on the capital markets business, which suffered a 41% fall in revenue over 2023. Now, the chief executive said, her team feels “closer to the restarting of capital markets activity than we have in some time”. “As a long-time real estate investor, I know it’s not only the absolute level of interest rates that matter, although it’s important,” MacKay said of expectations for the year ahead in that business. “But what also matters is the shape of the yield curve. With the inverted curve that we have today, people are hesitant to borrow and lend. Once the Fed begins to cut rates, which seems likely to happen later this year, we expect the yield curve to begin a process of normalising. This should help people get more comfortable about taking five-year, 10-year and 15-year risk, providing a pathway to a more active market.”