CBRE, JLL stocks take a beating after Brexit vote

Both firms have business ties to UK

TRD New York /
Jun.June 24, 2016 03:58 PM

CBRE and Jones Lang LaSalle’s stock prices plummeted Friday, amid investor fears that Britain’s vote to leave the European could cripple the companies’ European business.

As of 2:20 p.m., CBRE’s stock was down 8 percent for the day, while Jones Lang LaSalle’s stock had fallen by 11.9 percent.

Green Street Advisors had estimated that property values in London could fall by as much as 20 percent in the first three years after Britain leaves the EU. That’s bad news for CBRE, which last year made 18 percent of its revenue in Britain, and JLL – two leading global commercial real estate brokerage and services firms.

“Maybe transactions take longer and some get canceled. The same can happen for the leasing business, maybe space gets cheaper and corporations just don’t lease as much space. All this can have an impact on the revenue streams,” William Blair & Co. analyst Brandon Dobell told Bloomberg. He added that more U.S.-centric firms like Marcus & Millichap and HFF will likely feel less of an immediate impact.

The Real Deal earlier today recapped how the Brexit could impact New York City real estate. [Bloomberg] – Konrad Putzier

 

Related Articles

arrow_forward_ios
The Real Deal founder and publisher Amir Korangy and Massey Knakal founder Bob Knakal

JLL’s Bob Knakal on the future of New York

JLL’s Bob Knakal on the future of New York
Former JLL employee sues alleging toxic “boys club”

Former JLL employee sues alleging toxic “boys club”

Former JLL employee sues alleging toxic “boys club”
MetLife Building and Matt Van Buren, CBRE’s tri-state president (Getty, CBRE)

CBRE closes 2 offices, expands presence at MetLife HQ

CBRE closes 2 offices, expands presence at MetLife HQ
JLL CEO Christian Ulbrich (Ulbrich by Jemal Countess/Getty Images for Women's Forum of New York)

JLL profits halved by pandemic

JLL profits halved by pandemic
Clockwise:  CBRE's Michael Remer, Richard Hodos and Joel Stephen with the Wizarding World Building at 935 Broadway (Images via CBRE)

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal

CBRE’s Hodos and other Muggles win REBNY award for Harry Potter deal
(iStock)

Look out below: Major real estate services firms brace for falling earnings

Look out below: Major real estate services firms brace for falling earnings
Brookfield Property Partners' Brian Kingston, Silverstein Properties' Larry Silverstein and Empire State Realty Trust's Anthony Malkin (Getty)

Real estate firms lead cautious return to NYC offices

Real estate firms lead cautious return to NYC offices
Hana CEO Andrew Kupiec, The Real Deal's Hiten Samtani and Hana's EVP of Occupier Solutions Georgia Collins

The REInterview: How flex space could upend supply-demand dynamics in the office market

The REInterview: How flex space could upend supply-demand dynamics in the office market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...