Newmark posts record Q1 revenue
Management fees helped drive growth
Newmark posted record first quarter revenue this year, thanks to gains in its management services and leasing businesses.
The brokerage reported revenue of $504 million in its first-quarter earnings release published Thursday morning. That’s an increase of slightly more than 4 percent from the same period last year.
The gains were boosted by growth in the company’s biggest line of business: management fees from things like mortgage servicing, which saw a nearly 14 percent year-over-year increase. Revenue from leasing and commissions grew 5 percent, while revenue from capital markets and mortgage banking dropped about 5 percent and 6 percent, respectively.
The company posted earnings of $79.3 million for the first quarter, up 81 percent from the same time last year.
Newmark CEO Barry Gosin said the company saw strong demand in the industrial and life sciences sectors.
The call came as New York City plans to reopen. Mayor Bill de Blasio recently said he wants to have the city reopen 100 percent by July 1, and Gov. Andrew Cuomo took it a step further, announcing that capacity restrictions would be lifted by mid-May. On the earnings call, Gosin said Newmark plans to have all of its employees back in the office by the summer.
Newmark executives said they expect an uptick in office and retail leasing activity as the city reopens, and project long-term growth in the flex-office space as more companies move toward a hybrid, hub-and-spoke office model.
The brokerage recently completed its acquisition of Knotel, a deal that has proved to be a messy affair as Amol Sarva, the former head of the once-bankrupt flex-office operator, has slammed Newmark over its handling of the deal.