- JLL CEO Christian Ulbrich said very few capital markets deals are collapsing and the pipeline is still growing, though time to close is longer and price negotiations are more intense, per Bisnow.
- Third-quarter revenue rose 12% to $7.3 billion, with leasing advisory up 27% to $941 million and capital markets up 21% to $736 million, Bisnow reported.
- JLL’s full-year guidance implies fourth-quarter capital markets growth of flat to low single digits against a $854 million comparison, which management called cautious.
JLL’s CEO says higher rates are stretching deal timelines rather than killing transactions, according to Bisnow’s account of the brokerage’s third-quarter earnings call.
Revenue grew 12% to $7.3 billion, and adjusted EPS of $6.76 was up 50% and ahead of the $6.15 analysts expected. The stock rose about 12% by Wednesday afternoon.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Rates Slow the Clock
Christian Ulbrich said few capital markets deals are falling apart or undergoing major changes. The pipeline continues to grow. However, deals take longer to close, and price negotiations have become more intense.
That view sounds softer than CBRE’s assessment a week earlier. As we reported after the CBRE call, its CEO said higher rates were forcing buyers and sellers to rework, delay or abandon contracted deals. Some sellers also expect to refinance instead of completing sales.
Leasing Leads the Way
Leasing advisory revenue rose 27% to $941 million. U.S. growth came from data center, office and industrial deals. Capital markets services also grew 21%, reaching $736 million.
CFO Kelly Howe told Bisnow that tech and AI clients are taking large blocks of office space. Gateway markets are also growing much faster than non-gateway markets. Meanwhile, some industrial users want larger blocks of premium warehouse space.
Data centers accounted for 5% of quarterly leasing revenue. Howe noted that the share can fluctuate from quarter to quarter. The gateway trend also aligns with the off-market leasing we’ve tracked in Manhattan. JLL says landlords are finding tenants for vacant space before listing it publicly.
A Cautious Fourth Quarter
Capital markets revenue has grown about 21% over the first nine months. However, JLL’s full-year guidance calls for growth in the midteens. That outlook implies flat to low single-digit growth in the fourth quarter.
Howe and Ulbrich pointed to tough comparisons. The segment generated $854 million in fourth-quarter 2025. Ulbrich said the outlook takes a cautious approach.
JLL also plans a $500 million accelerated share repurchase. That move would push full-year buybacks above $1 billion, according to Bisnow.
Why It Matters
Ulbrich told investors that predictability matters more than the interest rate itself. He argued that rate swings cause more disruption than the actual rate level.
JPMorgan analysts called the results solid, Bisnow reported. They cited concerns about capital markets and tough leasing comparisons. Ulbrich said transaction volumes would rise “immediately” if rates stabilize.
Investors can manage 5% rates, he added. They did so for years and now need to adjust to that level again.
