Commercial Giants See Prospects Improving

Commercial real estate is showing signs of renewed life in the form of stronger leasing volume, more property management work, and increased investment sales.

Lauralee Martin, chief operating and financial officer at Jones Lang LaSalle (JLL), remarks, “Once companies believe there is a bottom, they have confidence to make decisions.”

In the months to come, some firms will consolidate and optimize leased space after cutbacks — ideally in better buildings with lower rents. Other companies will buy or sell buildings.

Revenue at JLL and CB Richard Ellis Group suggests commercial property buyers, sellers, tenants, and owners are starting to make more decisions regarding their space. Revenue climbed 18 percent at the former and 23 percent at the latter during the second quarter compared to a year earlier. In addition, both firms rank high in share price gains within Investor’s Business Daily’s Real Estate Development/Operations group.

CB Richard Chief Executive Brett White concludes, “After the recovery gets going and the economy gets its steam, you move into a long-term expansion.” He adds that expansion is when “every quarter is positive in job growth and GDP.”

Source: Investor’s Business Daily, Marilyn Alva (09/24/10)