JLL rides industrial boom, retail rebound to revenue record

“2021 was our biggest revenue and profit year ever,” said Stephen Conry, chief executive of the Australian business.

“Despite the disrupted business conditions in 2021, the transactional side of the business bounced back stronger than expected and our large annuity business was very profitable.

“All indications are that this business momentum and market optimism will continue strongly in 2022.”

Revenue from industrial capital markets and leasing jumped 98 per cent, riding higher on JLL’s involvement in mega deals, such as the $3.8 billion sale of the Blackstone’s Milestone logistics portfolio and Blackstone’s subsequent $2.1 billion acquisition of a stake in a logistics portfolio managed by ASX-listed Dexus.

A record year for the market in shopping mall transactions – the national tally hit $12.8 billion amid a wave of opportunistic buying after retail values reset – helped lift revenue in JLL’s retail investments business by 117 per cent.

Office leasing also picked up, with revenues rising 79 per cent in 2021 as major corporate tenants resolved their longer-term plans for accommodation. Revenue from JLL’s tenant representation rose 57 per cent over the 2020 result.

Despite the disruptions of COVID-19, the 2020 year was the firm’s second biggest yet. In 2019, JLL’s Australian arm recorded a tenth consecutive year of record revenues.

Mr Conry, who is due to retire later this year after 40 years with JLL including 13 years in the top job, said the positive employment growth figures for Australia were a good lead indicator for office demand this year.

“We are seeing companies particularly in the technology, health and finance sector reporting strong headcount growth. We do expect that organisations will continue to hold the longer-term view that quality office space will be required, despite remote working brought about by the pandemic, with many companies leasing office space to account for headcount growth.”