Commercial real estate firms Colliers and Marcus & Millichap posted revenue growth for the fourth quarter and full year and raised their outlook for 2026 as a recovery in real estate activity that started last year gains momentum.
Toronto-based Colliers, the world's fourth-largest commercial property services firm, said revenue rose 7% year over year to $1.61 billion in the quarter as annual revenue jumped 15% to $5.56 billion. Colliers reported growth across all its business segments, led by a 40% revenue jump in the firm's expanding engineering and design division for the full year to $1.73 billion as Colliers acquired several firms around the world.
Marcus & Millichap posted a $13.3 million profit in the fourth quarter. It was the Calabasas, California-based firm's second straight quarterly profit after two years of losses going back to 2024. Revenue rose 1.6% to $244 million for the full year, driven mainly by increases in brokerage commissions and financing fees.
The improved results come as the industry sees recovery in commercial real estate transactions, with leasing and sales demand for several firms meeting or surpassing levels in 2019, before the pandemic upended dealmaking.
"We entered 2026 with strong momentum once again and a healthy pipeline," Colliers Chief Executive Officer Jay Hennick told investors. "We expect another year of solid internal growth and ongoing contributions from recent acquisitions."
The firms joined CBRE in reporting a rebound in results bolstered by increased leasing transactions and property sales in a week in which artificial intelligence concerns led to market volatility involving some real estate stocks. But Hennick and Marcus & Millichap CEO Hessam Nadji were bullish on AI's potential to drive revenue and profits by increasing efficiency.
"We expect and fully embrace the opportunity that AI has opened for massive efficiency in virtually all aspects of property analysis, underwriting, client targeting and outreach," Nadji told investors.
CBRE CEO Bob Sulentic also downplayed AI concerns that led its stock to fall as much as 12% this week as the firm posted record fourth-quarter revenue, and earnings also hit new records for the quarter and fiscal year before the stock rose again.
Colliers saw its stock fall as much as 8% on Thursday, and ended Friday down 4% after the firm reported its earnings, which fell slightly short of analysts' expectations.
"While recent share price movements suggest AI's near-term impact may be overhyped, we believe its long-term value is as a productivity and growth enabler," Hennick said.
Engineering boost
Revenue in Colliers' engineering and design division climbed 40% for the full year to $1.73 billion as the firm acquired several firms around the world.
Most recently, the division purchased Ramos Consulting Services, a California-based engineering and construction management firm that has worked on some of California's largest transit projects.
The company this month also bought Ayesa Engineering, a major Spanish firm based in Seville for about $700 million.
The firm's engineering division provides such services as architecture, consulting, project management and civil engineering to business clients and public agencies.
The firm reported adjusted earnings per share of $2.34 for the final quarter of 2025 — 3.7% below the $2.43 per share expected by analysts.
Financing gains
Revenue from Marcus & Millichap's financing business rose 6% year over year in the fourth quarter to $33 million, Nadji aid.
The growth reflected an 8% increase in transaction volume to $3.7 billion across more than 500 financing deals, he added.
For the full year, financing revenue was $104 million, a 23% jump from last year, he said.
Real estate business factors are strengthening as falling property prices lure more buyers, Nadji said.
"While we remain mindful of lingering economic uncertainty and elevated geopolitical factors, the improving investor sentiment and trading environment we are seeing is encouraging," he added.
JLL, Cushman & Wakefield and Newmark report results next week.