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JLL, Marcus & Millichap exceed revenue expectations

Real estate services firms shift leadership as executives weigh effects of trade policy
JLL, based in the Aon Center in Chicago, reported a $55.3 million profit for the first quarter. (Justin Schmidt/CoStar)
JLL, based in the Aon Center in Chicago, reported a $55.3 million profit for the first quarter. (Justin Schmidt/CoStar)

JLL and Marcus & Millichap posted higher revenue and deal volume as executives monitor the effects of shifting trade policy and macroeconomic uncertainty on their clients.

Chicago-based JLL posted a $55.3 million first-quarter profit driven by a 13% jump in revenue to $5.7 billion from the year-earlier period, fueled by a surge in office and industrial leasing, sales and financing. Revenue for both firms exceeded analysts' expectations.

National investment sales brokerage Marcus & Millichap posted revenue of $145 million for the quarter, a 12.3% increase from the same time last year. The Calabasas, California-based firm, which is reorganizing its management team in a quest to boost sales and streamline decision-making, reported a smaller $4.4 million loss compared to a $10 million loss in the prior-year quarter.

JLL and Marcus & Millichap are the last of the publicly traded brokerages to post first-quarter results in recent weeks, a period marked by choppy deal activity and market turbulence as clients weigh real estate decisions in the face of U.S. tariff concerns.

Marcus & Millichap’s improved first quarter reflected “our strategic focus and ability to execute despite persistent headwinds across the sector,” CEO Hessam Nadji said in a statement. “Internally, the ongoing investments we are making in systems, talent and market coverage position us well to capture growth as market conditions improve,” Nadji said.

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May 06, 2025 06:16 PM
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JLL, the world’s second-largest commercial real estate services provider by revenue, reported a 15% jump in leasing activity year over year, driven by a rebound in office deals as more companies bring employees back to the office.

"Corporates around the world are gaining more clarity on future space needs, and with historically low development pipelines in the U.S. and Europe, office fundamentals and rents are likely to continue to strengthen for top-tier buildings," JLL CEO Christian Ulbrich said during the company's earnings call.

JLL and Marcus & Millichap, like CBRE, Cushman & Wakefield, Newmark and Colliers, reported a guarded outlook for the rest of the year.

“We are encouraged by our strong pipelines alongside business trends to date, however, it is still too early to fully discern the impact of the recent and fluid tariff policy shifts on the broader economy, as well as our industry and business,” JLL Chief Financial Officer Karen Brennan, who was named to head the firm’s fast-growing global leasing advisory group beginning July 1, told investors on Wednesday.

The brokerage promoted Kelly Howe, the current chief financial officer of global leasing advisory, to succeed Brennan as its companywide CFO.

Nadji said he expects deal activity to pick up in the second half of the year, albeit at moderate levels until there is more clarity on trade and tax policies.

"While several metrics and leading indicators show signs of improvement, others reflect investor caution," he said.

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