Brokerage Industry Hard Hit by Losses

Expense Cuts of 20% to 30% Have Been the Norm in Face of Drop Off in Transaction Pace, Focus Remains on Revenue-Generating Opportunities


By Mark Heschmeyer


Major U.S. commercial real estate brokerage houses are reporting first quarter net losses across the board, reflecting the ongoing impact of the current recession and dearth of transaction activity. This is believed to be the first time in recent memory that all the major brokerage firms reported a quarterly loss, an occurrence that can’t be recalled even during the last major recession following the dotcom bust in 2001.

Jones Lang LaSalle reported a net loss of $61 million for the first quarter; FirstService (which owns a majority of Colliers International) reported a net loss of $44.7 million in the first quarter; CB Richard Ellis posted a first quarter net loss of $36.7 million; and HFF (Holliday Fenoglio Fowler) posted a first quarter net loss of $6.1 million.


This article courtesy of the CoStar Group. To get the full story, click here.


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