Cushman’s income drops 70% in Q1

CEO says firm can weather the storm thanks to property management business

National /
May.May 07, 2020 07:10 PM
Cushman & Wakefield's Brett White (Credit: iStock)

Cushman & Wakefield’s Brett White (Credit: iStock)

Cushman & Wakefield reported net income of nearly $7 million in the first quarter of 2020, down 70 percent from the same time last year.

Revenue remained relatively flat at just shy of $1.9 billion, but the firm posted larger operating losses.

The steady stream of revenue from property management, which made up a little more than half of the quarter’s fee revenue, helped mitigate the losses in leasing and capital markets due to the coronavirus pandemic, according to CEO Brett White.

“Businesses in our industry that are only capital markets businesses are going to get hammered,” he said on the company’s earnings call Thursday evening.

White said the big three real estate service firms — Cushman, CBRE and JLL — are well positioned to weather the financial downturn thanks to their large property management businesses. Smaller firms that focus on capital markets or leasing, he said, would feel the pinch more.

“We’ll be watching those firms carefully,” he added.

White said Cushman has put mergers and acquisitions on hold for the time being. But he said the company would make an exception if particularly attractive deals came across the table.

He said that in the early days of the pandemic, companies were surprised by work-from-home productivity levels, leading to questions about whether firms would abandon large portions of their office space en masse.

He said those opinions are changing now. “That conversation has changed demonstrably,” he said.

Contact Rich Bockmann at [email protected] or 908-415-5229


Related Articles

arrow_forward_ios
From left: Cushman & Wakefield’s Doug Harmon and Adam Spies; American Express CEO Stephen Squeri; and 200 Vesey Street (Getty Images, Cushman & Wakefield, Brookfield Properties, Manhattan College)
American Express to explore headquarters sale, move
American Express to explore headquarters sale, move
(Photo Illustration by The Real Deal with Getty Images)
US retail real estate rises from the ashes
US retail real estate rises from the ashes
ASG's Steve Reardon, DoorLoop's Ori Tamuz and David Bitton (ASG, DoorLoop)
Property management startup DoorLoop raises $20M
Property management startup DoorLoop raises $20M
Len Texter (Cushman & Wakefield)
Senior Cushman executive to depart
Senior Cushman executive to depart
(Photo Illustration by The Real Deal with Getty Images)
U.S. property value to fall 20% in likely recession, Cushman forecasts
U.S. property value to fall 20% in likely recession, Cushman forecasts
From left: Letitia James, Donald Trump and Brett White (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images)
Cushman delivers 36K documents to AG in Trump probe
Cushman delivers 36K documents to AG in Trump probe
A photo illustration of 450 Park Avenue (left) and 8 Spruce Street (right) (Douglas Elliman, Reading Tom, CC BY 2.0 - via Wikimedia Commons, Getty Images)
CRE investment sales hit $21B in first half of 2022: report
CRE investment sales hit $21B in first half of 2022: report
Mitti Liebersohn and Arthur Mirante
Mirante, Liebersohn jump to Savills from Avison Young
Mirante, Liebersohn jump to Savills from Avison Young
arrow_forward_ios

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

Loading...