- JLL reported a 13% year-over-year increase in leasing revenue, with office leasing surpassing pre-pandemic levels, marking five consecutive quarters of growth.
- Capital markets services surged 16%, driven by a 70% increase in global debt advisory revenue and a 35% rise in investment sales.
- Demand is strongest for premium office assets, with a clear “flight to quality,” though many Grade B properties remain financially challenged.
Market Momentum
JLL’s Q1 2025 earnings highlight a rebound in office leasing, driven by return-to-office trends and limited new supply, reports Globe St. Office leasing in the US exceeded Q1 2019 levels, fueled by several large transactions, particularly in high-end buildings.
CEO Insights
Christian Ulbrich, JLL’s CEO, attributed this momentum to both employer pushback on remote work and heightened tenant demand for quality workspaces. He emphasized that Grade A and A+ offices are capturing most of the leasing activity, with some spillover starting to benefit well-renovated Grade B assets.
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
Capital Markets Comeback
On the capital markets side, JLL posted a 16% revenue increase, thanks in large part to surging demand in debt advisory and investment sales. The company’s CFO, Karen Brennan, credited a strong mix of large-scale transactions—an area where JLL maintains a leading position. Investment sales, which account for 40% of the company’s capital markets segment, rose over 35% year-over-year.
A Tale of Two Markets
While JLL and other firms like Cushman & Wakefield reported gains, some major players are voicing caution. CBRE noted that tariffs and macroeconomic uncertainty could weigh on future activity, and Blackstone pointed to a “turbulent” market outlook. JLL, however, made no mention of tariffs in its earnings discussion.
Why It Matters
The rebound in leasing and capital markets activity signals renewed investor and tenant confidence in the commercial real estate sector. Top-tier office buildings are commanding strong demand, reinforcing the value of quality and location amid a shifting post-pandemic landscape.
What’s Next
As leasing momentum builds and liquidity improves, JLL appears well-positioned to benefit from further recovery in global office and industrial sectors. The company’s performance also suggests that demand for premium office space will remain resilient, even as older buildings face continued headwinds.
