CBRE profits off nearly 90 percent

Jul.July 30, 2008 11:45 AM

Reduced leasing and sales activity drove net income for CB Richard Ellis Group down by 88 percent and revenues down by 12 percent in the second quarter, the company reported.

Net income in the three months ending June 30 was $16.6 million on revenues of $1.3 billion, compared with net income of $141.1 million on earnings of $1.5 billion for the same period in 2007, according to an earnings report from the international real estate service company.

Los Angeles-based CBRE blamed the weak results on reduced sales, harmed by the tightening of global credit markets, and a softer leasing market, primarily in the United States and United Kingdom.

“Investment sales activity remained quite soft due to a broadening of the credit market turmoil and a continuing gap between buyer and seller expectations of property values,” Brett White, president and chief executive officer of CBRE, said in a statement Wednesday.

The company expects markets to improve in mid-to-late 2009.

Despite a difficult year, CBRE is winning the local leasing wars, according to Crain’s, brokering the vast majority of Manhattan office leases this year. CBRE signed 4.9 million square feet compared with Cushman and Wakefield’s 1.9 million square feet.

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

High water levels in Lake Michigan erode a walkway and seawall (Credit: Scott Olson/Getty Images)

Rising waters are wreaking havoc on the Great Lakes’ real estate

Fredrik Eklund (Credit: Getty Images)

Fredrik Eklund talks LA condos, the mega-luxury market and patience

Boise, Idaho (Credit: iStock)

These small US cities have exploding luxury markets

(Credit: iStock and Google Maps)

The cheapest house in America’s richest town is listed for $2.5M

Medical staff outside of a Beijing hospital in February 2020 (Credit: Getty Images)

Coronavirus is wreaking havoc on China’s landlords