CBRE taps real estate rebound for record revenue
Commercial real estate agency CBRE Pacific Advisory Services has collected record revenue for full-year 2021, after reporting a 39 per cent year-on-year gain across its Australian and New Zealand business.
The strong result in the local and New Zealand markets was part of a global story for New York-listed CBRE, which booked all-time highs for revenue, net revenue and earnings in 2021 financial filings. Statutory net income rose 144 per cent to more than $US1.84 billion ($2.54 billion) last year.
Revenue in these markets in the fourth quarter alone jumped 43 per cent year-on-year, as the rebound gained momentum, with office leasing a particular stand-out.
“While COVID-19 presented continued challenges, the diversification of our business in Australia and New Zealand was central to our performance during 2021,” said Phil Rowland, chief executive of the Pacific business.
“This diversification allowed us to adapt as COVID-19 altered the real estate landscape and provide our clients with market-leading insight and exceptional outcomes.
Mr Rowland said solid performances were booked across all of the agency’s Pacific markets and lines of business, with a highlight being the recovery in office leasing in the fourth quarter, despite lockdowns and working from home directives in the larger CBD markets of Sydney and Melbourne.
“While remote working will continue to present short-term challenges for city office markets, robust leasing activity and the shrinkage of sublease availability through 2021 indicates that businesses are looking through short-term difficulties and planning medium to long-term accommodation strategies,” he said.
“We believe that vacancy rates in key office markets are likely to have peaked, and that there is scope for low-single-digit annual rental growth over the next three years.”
Among other highlights was the strong occupier and investor activity in the industrial and logistics market, he said.
For this year, one of the key drivers for the commercial real estate market would be the increased property asset allocations from Australian superannuation funds, according to Mr Rowland.
“In addition, the return of citizens and skilled immigrants will likely boost demand for office and industrial space as well as new dwellings, and lead to higher retail spending,” he said.
Rising interest in the build-to-rent, health sciences and data centre markets, as well as a heightened focus on ESG, would also be strong themes this year, he said.
