Leasing lift helps EMEA shine at Cushman
Leasing activity in Europe was a highlight for Cushman & Wakefield in the first quarter of the year, helping the region to post the highest year-on-year revenue growth across the business.
Global revenue for the quarter came in at $2.2bn (£1.7bn), down by 3% year-on-year. Leasing revenue increased by 5%, led by growth of a third in Europe, the Middle East and Africa. Valuation revenue was up by 1%, while services and capital markets declined by 3% and 1% respectively. The agency made a net loss of $28.8m, down from a $76.4m loss in the first quarter of 2023.
In EMEA, revenue of $222.4m was 8% ahead of Q1 2023. Capital markets revenue in the region rose by 15%, while valuation nudged up by 3% and services dipped by 7%. The EMEA division made a loss of $10.5m compared to a $24.3m loss a year ago.
Leasing activity in Europe was a highlight for Cushman & Wakefield in the first quarter of the year, helping the region to post the highest year-on-year revenue growth across the business.
Global revenue for the quarter came in at $2.2bn (£1.7bn), down by 3% year-on-year. Leasing revenue increased by 5%, led by growth of a third in Europe, the Middle East and Africa. Valuation revenue was up by 1%, while services and capital markets declined by 3% and 1% respectively. The agency made a net loss of $28.8m, down from a $76.4m loss in the first quarter of 2023.
In EMEA, revenue of $222.4m was 8% ahead of Q1 2023. Capital markets revenue in the region rose by 15%, while valuation nudged up by 3% and services dipped by 7%. The EMEA division made a loss of $10.5m compared to a $24.3m loss a year ago.
APAC revenue was also up, leaving the Americas the only region in which revenue fell year-on-year, with a 6% decline.
On a call to discuss the earnings, chief executive Michelle MacKay said: “We expect that leasing, which is a particular strength of ours, will continue to benefit from global economic resiliency as we move through the cycle, and our diverse platform allows us to capture pockets of strength across regions and asset classes, as we have positioned ourselves to do for the past several quarters.”
MacKay said the agency has seen a shift in the type of deals driving office leasing activity. “In Q4 of last year, it was largely larger leases being cut in higher-quality buildings,” she said. “Now, we’re starting to see a mix in a combination of those same leases, we’re starting to see a mix-in of smaller tenants, still in high-quality buildings… but smaller leases in the first quarter of this year.”
She added: “Our teams across the globe generated another quarter of solid leasing growth and seized on opportunities in capital markets that resulted in a meaningful improvement in sales pace during the quarter,” said chief executive Michelle MacKay.
“Additionally, we maintained our cost discipline to drive margin improvement and recently repaid and refinanced debt to reduce our annual interest expense. Looking forward, we will build upon this quarter’s momentum and continue to position ourselves to capitalise on growth opportunities as they arise.”
