Profimex Market Review Update – February 25, 2021
The Perfect Moment to Negotiate Office Rent
During the pandemic, office occupiers decided to stay on the sidelines before re-entering the market to wait for the “sweet spot”, the time when they can get the best deal in the market. Historically, according to Cushman & Wakefield, this happened 14 to 15 quarters after a recession started. However, because of the “unprecedented size and timing of the labor market shock” during the pandemic, Cushman & Wakefield believes that more markets will reach the sweet spot earlier than in previous recessions. For office owners, this would mean that rental rates will decrease soon.
Commercial property firm CBRE beats Wall Street expectations with record income
CBRE, the Dallas-based commercial property firm, surpassed analysts’ expectations, delivering a record quarterly earnings in the fourth quarter of 2020. Even though revenue decreased by 3% year-over-year to $23.8 billion, the firm was able to reduce its expenses through cost-cutting measures and business realignments. The result was a net income of $491 million, with an all-time high quarterly earnings per share. CEO Bob Sulentic said in a statement: “Now we are exiting the worst of the COVID-19 crisis in great shape, with a leaner operating structure, significant financial capacity and a strategy squarely aimed at the many opportunities unfolding in our industry, including those with secular tailwinds.”