Newmark Group earnings exceeded expectations, as executives said they are optimistic about real estate sales and other deal activity increasing in 2025, overcoming industry concerns over trade tariffs, inflation and other economic issues.
The New York-based brokerage’s revenue rose nearly 19% in the fourth quarter, also beating estimates at $888.3 million compared with the year-earlier period as the company posted double-digit gains in property and investment management, capital markets and leasing.
Newmark joined CBRE, the world’s largest commercial real estate firm, and Colliers, the fourth largest, in expressing confidence in the real estate industry. This is in spite of myriad worries about inflation, the direction of interest rates, and the potential effects of President Donald Trump's erratic economic policies in just the first three weeks of his second term, which began last month.
“The company is positioned for success in an industry that is poised for growth over the next several years,” CEO Barry Gosin told investors during its earnings call. "Our pipeline across all major business lines remains robust and we expect momentum throughout the year. We anticipate strong revenue and earnings growth in 2025."
Leasing revenue increased by 15.1% in the quarter, led by strong double-digit growth in the office sector, where Newmark advised many high-profile transactions, CFO Mike Rispoli said.
Gosin said he expects return-to-office mandates, employment growth, reduced construction, and conversion of office space into other uses, to boost the nation's office sector in the coming months.
Newmark finished with nearly $17 billion in data center deal activity last year, "and we expect to do more,” Gosin said. The combination of reshoring the production of semiconductors and other manufacturing, the advent of AI, and the White House’s hypothetical plans to invest in data center infrastructure “makes the future look incredibly bright” for the data center industry, he added.
Newmark posted a $61.2 million profit for 2024, higher than the $42.5 million in the prior year. The results fueled a gain in the company's stock price as high as 11% in mid-morning trading.