CBRE, JLL stocks take a beating after Brexit vote
From the New York website: CBRE and Jones Lang LaSalle’s stock prices plummeted Friday, amid investor fears that Britain’s vote to leave the European could cripple the companies’ European business.
As of 2:20 p.m., CBRE’s stock was down 8 percent for the day, while Jones Lang LaSalle’s stock had fallen by 11.9 percent.
Green Street Advisors had estimated that property values in London could fall by as much as 20 percent in the first three years after Britain leaves the EU. That’s bad news for CBRE, which last year made 18 percent of its revenue in Britain, and JLL – two leading global commercial real estate brokerage and services firms.
“Maybe transactions take longer and some get canceled. The same can happen for the leasing business, maybe space gets cheaper and corporations just don’t lease as much space. All this can have an impact on the revenue streams,” William Blair & Co. analyst Brandon Dobell told Bloomberg. He added that more U.S.-centric firms like Marcus & Millichap and HFF will likely feel less of an immediate impact.
The Real Deal earlier on Friday recapped how the Brexit could impact Miami real estate. [Bloomberg] – Konrad Putzier
Source: The Real Deal