Newmark has long been one of NYC’s top commercial real estate brokerages, and company leaders are angling to elbow even higher up the ladder. Despite being one of the leading industry brokerages, the firm is still much smaller than JLL and Cushman & Wakefield regarding the number of employees. Newmark’s total employee count is 6,300, while rival Cushman & Wakefield has 50,000. CBRE’s global headcount is more than 100,000.
The poach comes at a time when many of the largest brokerage firms are implementing cost-cutting measures amid a topsy-turvy market. JLL plans to cut costs to save $140 million annually, with about $125 million of that set to come this year. Last fall, CBRE leaders said they had formulated a $400 million cost-cutting strategy that is now underway. In the fourth quarter, the firm cut its spending by $80 million and will trim spending by another $300 million this year alone. Just recently, CBRE announced it was postponing the development of its new headquarters building in Dallas, saying it didn’t make sense at the moment, given the current market conditions. And over at Cushman & Wakefield, company leaders are looking to take permanent cost-cutting measures to save $90 million this year. While some firms have been tight-lipped on what exactly the cost-cutting measures will entail, many of the cuts to spending are expected to be made through layoffs.
Newmark’s latest earnings report showed that the company has not been immune to the impacts of a high-interest rate environment.
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