Cushman & Wakefield reported jumps in office and industrial property leasing as clients make real estate decisions in the face of U.S. tariff concerns.
The world’s third-largest commercial property brokerage posted a 9% gain in leasing revenue in the first quarter, driven by 14% growth in the Americas and 16% in the company’s Asia-Pacific business.
The Chicago-based company posted a profit of just under $2 million, compared with a $28.8 million loss for the prior-year period, as revenue rose 5% year over year to $2.3 billion.
Cushman CEO Michelle MacKay said “the tariff uncertainty has not materially impacted our sector,” responding to a question from an analyst about real estate conditions since April 2, when President Donald Trump announced sweeping tariffs.
MacKay's assessment stands in contrast to comments from Bob Sulentic, the CEO of Cushman's larger rival CBRE, who last week said "our outlook has become less clear" during uncertainty created by the tariffs.
CBRE, the first brokerage to report earnings, is moving forward with the assumption of "choppiness and a risk of a recession," Sulentic said. Still, CBRE's "current activity levels and new business pipelines continue to be strong, just somewhat less than they were."
Newmark reports earnings on Wednesday, followed next week by JLL, Colliers and Marcus & Millichap.
Little delays
The vast majority of Cushman’s clients are “moving through the noise in the market” to make real estate decisions, with 5% or less opting to delay decisions until later this year, MacKay said.
Based on the strong first-quarter numbers, Cushman maintained the outlook from its last earnings call in February, estimating mid-single-digit revenue growth for the full year, Chief Financial Officer Neil Johnston said.
“What we are not witnessing is a freeze in decision-making,” MacKay said. “And that’s in large part why we see our [second quarter] numbers — and frankly, our 2025 performance — staying intact.”
Still, Cushman "will remain flexible and watchful at the operating environment and make any necessary adjustments" to its forecast, given the global uncertainty over the U.S. tariffs outcomes for the economy that could include a recession, Johnston said.
MacKay added that Cushman’s brokers reported strong office demand throughout the quarter, with more businesses signing long-term leases.
“We haven’t seen the uncertainty in the economy impact occupiers’ confidence to move forward with their workplace strategies,” she said.
Industrial demand also stayed strong during the quarter, though Cushman executives “didn’t come into the year with unrealistic expectations around leasing growth” for the full year, MacKay said.
“What hasn’t changed, even in the midst of the tariff discussions, is that businesses still need industrial space to get their products to their customers,” she added.