Even as some real estate services firms expect fewer deals and commissions this year, the top executive at CBRE still sees some opportunities for his company.
CEO Bob Sulentic, who also serves as president of the world's largest real estate brokerage, said CBRE should be able to recruit some business-savvy brokers during the downturn.
“This is the kind of environment that generally plays well for CBRE,” Sulentic said during a call last week with investors. “When times are uncertain, it’s harder to generate commissions on either leases or sales or financing opportunities. Brokers tend to want to go to a platform that’s more likely to support them.”
Having a bigger base of clients and a well-known brand positions CBRE well to invest in a downturn because of its strong balance sheet. Last year, CBRE promoted Jack Durburg to oversee the firm’s key advisory services business, which had a big year of recruitment and plans for a similar showing this year. The push comes even as CBRE has laid off staff in the past year.
“We will generate a lot of cash in 2023 and 2024, and the more sophisticated brokers know that, and they know we will be able to continue to invest in our business,” Sulentic said. “It helps us retain and recruit.”