Property management revenue supported the big three U.S. facilities management firms in the third quarter as they faced large declines in leasing revenues, according to their quarterly earnings calls this month. CBRE’s project management revenue grew 15% year over year and JLL expanded its Work Dynamics segment’s revenue 7% year over year, while Cushman & Wakefield’s property, facilities and project management revenue remained flat in that period. These figures compare with year-over-year declines of 16%, 22% and 16% in leasing revenue for CBRE, JLL and Cushman & Wakefield, respectively. CBRE credited its facilities management revenue growth to a rise in first-generation outsourcing clients, which it says reflects an increasing interest in reducing occupancy costs amid an uncertain economic environment.
Despite the decline in leasing activity, building control, service and technology firms showed successes in the past quarter, with Modine, Honeywell and Schneider Electric increasing their building project backlogs and segment profit margins. Key segments that showed growth included energy efficiency, electrification, warehouse automation and data center cooling.
Johnson Controls, one of the nation’s largest building control firms, has delayed its fiscal year fourth quarter results following a cyberattack in September, which it said at the time may “impact its ability to timely release its fourth quarter and full year fiscal results.”
Read more from Facilities Dive on the performance of these companies in the quarter below.
