CBRE’s Q3 results have been “negatively impacted” by the ongoing Covid crisis, the agent said, with “pronounced challenges continuing” in the sales and leasing businesses.
For the quarter ended 30 September, CBRE’s total fee revenue dipped by 13.9% to $2.5bn (£1.9bn) from $2.9bn the previous comparable time period in 2019.
In its advisory services business, the pandemic had “continued to weigh heavily” on this division, the agent said. Advisory leasing revenue dropped by 31% as a result of large occupiers putting leasing decisions on hold, and advisory property sales revenue declined by 34% as the market remained “severely disrupted”.
Meanwhile, CBRE’s global workspace solutions business weathered the Covid storm during Q3, with fee revenue rising by 4.1% to $838m from $793m in 2019. Its facilities management business, which accounts for 84% of the division’s fee revenue, rose by 9%.
The agent’s overall adjusted EBITDA dipped by 3.3% to $442m from $455m.
CBRE president and chief executive Bob Sulentic said: “The resilient aspects of our business, coupled with our moves to quickly align expenses with reduced market demand, are helping us weather the sharp, Covid-driven fall in property leasing and sales.”
He added: “At the present time, Covid is putting downward pressure on parts of our business and creating larger opportunities in other parts. We are continuing to take advantage of the strong secular growth trends that were driven by the last cycle, including occupier outsourcing, industrial and logistics space, institutional-quality multifamily assets and workplace experience services.”
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