Connect With Us


Credit Crunch Hits CBRE, JLL


Lower investment sales volume--exacerbated by the credit crunch--equals fewer commissions. That's hurting the major brokerage firms.

The tighter lending standards have made borrowing for commercial real estate purchases either difficult and expensive or downright impossible. In the United States, commercial real estate sales have dropped by around 70 percent.

Most of the deals getting done are either seller financed, or already have assumable mortgage debt. More often, unless they are financially strapped, owners are refusing to sell at the prices that the higher financing costs demand.

The lower volume of sales has crimped property brokers' fees and commissions. After the market close, Jones Lang said its quarterly profits tumbled 69 percent to $24.5 million, or 73 cents a share, from $77.9 million, or $2.23 per share a year earlier.

At CB Richard Ellis Group, second-quarter net income plunged 88 percent to $16.6 million, or 8 cents per share, from $141.1 million, or 59 cents per share.


Please or Register to post comments.

What's TrafficCourt?

Industry news, views and occasional strange stuff.


Elaine Misonzhnik

Senior associate editor Elaine Misonzhnik has been writing for National Real Estate Investor since June 2006 and has covered commercial real estate for more than 12 years. She first became...
Blog Archive
National Real Estate Investor Related Sites

Sponsored Introduction Continue on to (or wait seconds) ×