Real Estate Management - $JLL and CBRE

Hello y’all looking towards sentiment on earnings run up for real estate management, we have $JLL and $CBRE, two the biggest monsters in real estate management reporting earnings next week.

Throwing this topic here to discuss any thoughts.

In my real job my company services both in over $50 million range. Most agreements are being bid out given extreme costs and they have been reducing their service needs to stay in budget. That would be janitorial, maintenance, security, and other vendor related labor costs that are essential and usually passed back on to tenants etc.

So LABOR would in my opinion impact them.

Another impact from logical point (though logic this ER season does not seem to bode well) would be commercial funding for capital improvements and that sort. Coming out of Covid many I’m sure used whatever they had to keep operations running while interest rates were low. Now that the country is reopen they would need to look towards funding on those projects. That funding would be more costly given interest rates compared to prior to Covid. However as @refrigerate mentioned to me earlier most reits etc are doing well and have their asset to use to offset their needs.

So COMMERCIAL LENDING costs being higher may impact guidance

Lastly, real estate value…while the residential housing market has been a big topic, how would commercial real estate values be compared to 2021 or Q1 2022.

Again some thoughts and will add tomorrow prior price moves and related articles.

Could be something to get in on or could be a nothing burger!




I dont know too much about real estate but this initial DD seems intriguing. I’ll check stuff up on JLL

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