Brexit spells possible slowdown for CRE firms

The Real Deal by Kathryn Brenzel

From left: Colliers' Jay Hennick, JLL's Colin Dyer, Savills' Jeremy Helsby and CBRE's Bob Sulentic all holding on to their stock (Illustration by Lexi Pilgrim)

Facing a Brexit-fueled slowdown in sales, commercial real estate services firms must also grapple with possible drops in commissions and a change in merger prospects abroad.

Shares in firms including CBRE Group, JLL, Savills PLC and Colliers International Group have plunged at the possibility of a decrease in commissions, the Wall Street Journal reported. Cushman & Wakefield, whose initial public offering was expected to come later this year or early next, will likely have to postpone as analysts sound the alarm and firms trade at deep discounts.

“If your peers are trading poorly, your owners are going to say why am I taking this thing public now,” Brandon Dobell, of William Blair & Co., told the newspaper. “Giving away cheap equity tends to not be a great idea to put before the board.”

Still, some firms may benefit from Britain’s exit from the European Union. Firms with low debt like CBRE and JLL may be able to more easily acquire companies in the U.K. who are facing the uncertainty of a post-Brexit economy, the Journal noted.

The Real Deal in late June took a speculative look at how Miami and New York’s real estate sectors might be impacted by the Brexit.

This update is brought to you by the Kawas Team, specializing in South Beach luxury homes.  The Kawas Team can help you find the right property.  If you would like additional information on pre-construction sales, call 305.608.6681 to speak with an expert.  Visit our website for information on the many new projects throughout the many Miami luxury neighborhoods and beyond.


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