Real estate services firm Colliers posted double-digit revenue growth as acquisitions of engineering businesses bolstered its financial results in the third quarter.
The Toronto-based firm, the fourth largest of its kind, said revenue rose 24% to $1.46 billion for the quarter from the prior-year period.
While Colliers reported growing demand for all its business lines, its engineering business stood out. Revenue in the firm's engineering and design division, a provider of such services as architecture, consulting, project management and civil engineering to public agencies and business clients, jumped 54% to $488.1 million over the prior-year quarter.
Colliers joined CBRE, Cushman & Wakefield and Newmark in posting double-digit revenue gains in the latest quarter. Unlike its peers, however, Colliers did not raise its overall financial outlook for the rest of the year.
The firm opted to maintain its estimate made in July of revenue growth in the low teens in terms of percentage for this full year from the company's $4.82 billion in total revenue in 2024.
For the first time since the pandemic upended the property services industry in 2020, all five of the biggest commercial real estate services firms raised their outlook for 2025 while reporting their results for the second quarter, when commissions from property sales and leasing picked up.
The latest Colliers outlook "reflects expectations of continuing lower global trade uncertainty and lower interest rate volatility for the fourth quarter,” the company said in its financial statement.
Colliers posted a $42.2 million profit for the quarter, up from $37.2 million in the same period last year.
Investment management takes hit
Colliers may exceed its previous full-year guidance in its real estate services and engineering segments but expects to be “off slightly” on its revenue projections for its investment management business, Chief Financial Officer Christian Mayer said during the call.
Mayer attributed the potential dip to the timing of fundraising and costs associated with integrating its investment management operations under the Harrison Street Asset Management brand.
“To achieve our full-year guidance, we do want to see an increase in capital markets activity year over year," Mayer said during the call.
CEO Jay Hennick reported "excellent results" in its real estate services division that includes its brokerage, driven by a surge in leasing and property sales and financing transactions.
"While the capital markets recovery has been gradual, we expect continued acceleration as interest rates normalize and investor confidence increases," Hennick told investors.
Colliers in September expanded its Canadian engineering capabilities with the acquisition of Ottawa-based LRL Associates Ltd. Colliers this week announced the acquisition of another engineering firm, Greenhill Engineers Pty Ltd, an urban development consultancy with 65 employees based in Adelaide, Australia.
Greenhill, acquired under undisclosed terms, provides civil engineering, electrical infrastructure, transport infrastructure and landscape architecture services to private and public clients.