JLL has seen its more stable business lines “outpaced” by continued problems in the deal market.
The agency’s capital markets revenue dropped by 41% year-on-year in dollar terms during the first three months of this year to $357.1m (£284m), the most significant shift across any of the group’s business lines.
That compared with a 9% fall in markets advisory and a 3% fall from investment management arm LaSalle, and with growth from the work dynamics division (up 9%) and JLL Technologies (24%).
Total revenue was down by 2% at $4.7bn, with a net loss of $9.2m.
“Our first-quarter financial results were in line with the expectations we had at the beginning of the year,” said chief executive Christian Ulbrich (pictured). “Strong fee revenue growth in our resilient business lines was offset by the continuation of the industry-wide slowdown in investment sales and leasing volumes.”
The agency pinned the capital markets drop on “uncertainty with interest rates and the macroeconomic outlook as transaction volumes fell and the deal-cycle time remained elongated”.
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