Brokerage Giants Join CBRE in Signaling Stronger Commercial Real Estate Recovery
Global real estate brokerage firms Colliers and Marcus & Millichap reported revenue growth for both the fourth quarter and full year, raising their outlook for 2026 as commercial real estate deal activity continues to rebound.
Toronto-based Colliers, the world’s fourth-largest commercial property services company, announced that fourth-quarter revenue rose 7% year over year to $1.61 billion. For the full year, revenue increased 15% to $5.56 billion. Growth was recorded across all major business lines, with the strongest performance coming from its expanding engineering and design division. That segment saw revenue surge 40% annually to $1.73 billion, supported by multiple global acquisitions.
Meanwhile, Calabasas, California-based Marcus & Millichap reported a fourth-quarter profit of $13.3 million — marking its second consecutive profitable quarter following two years of losses that began in 2024. Full-year revenue climbed 1.6% to $244 million, largely driven by higher brokerage commissions and financing fees.
The improved performance reflects a broader recovery in commercial real estate transactions. Leasing and investment sales activity at several firms have reached or exceeded pre-pandemic levels seen in 2019.
“We entered 2026 with strong momentum and a healthy pipeline,” said Colliers CEO Jay Hennick, expressing confidence in continued internal growth and contributions from recent acquisitions.
The two firms join CBRE in reporting strengthening results fueled by rising leasing volume and property sales. Their earnings updates came during a volatile week for financial markets, as investor concerns surrounding artificial intelligence weighed on some real estate stocks.
Despite short-term market fluctuations, executives remained optimistic about AI’s long-term benefits. Marcus & Millichap CEO Hessam Nadji highlighted AI’s potential to improve efficiency in property analysis, underwriting and client outreach. CBRE CEO Bob Sulentic also dismissed fears that AI would negatively impact brokerage operations after his firm posted record quarterly and annual earnings.
Colliers’ stock briefly fell as much as 8% following its earnings announcement before closing the week down 4%, partly due to results slightly missing analysts’ expectations. The company reported adjusted earnings per share of $2.34 for the fourth quarter of 2025, slightly below the projected $2.43.
Engineering Division Drives Growth
A key contributor to Colliers’ performance was its engineering and design platform, which generated $1.73 billion in revenue for the year — up 40% from the prior year.
The company recently expanded the division through strategic acquisitions, including California-based Ramos Consulting Services, known for its involvement in major transit infrastructure projects. Earlier this month, Colliers also acquired Spain-based Ayesa Engineering in a deal valued at approximately $700 million.
The engineering division delivers services such as architecture, civil engineering, project management and consulting to corporate clients and public-sector agencies.
Financing Business Strengthens
Marcus & Millichap also recorded notable gains in its financing segment. Fourth-quarter financing revenue rose 6% year over year to $33 million, reflecting an 8% increase in transaction volume to $3.7 billion across more than 500 financing deals.
For the full year, financing revenue totaled $104 million — a 23% increase compared to the previous year.
Nadji noted that declining property values have begun attracting more buyers back into the market, improving overall investor sentiment.
“While we remain cautious about economic uncertainty and geopolitical risks, the trading environment and investor confidence we are seeing today are encouraging,” he said.
Additional major brokerage firms, including JLL, Cushman & Wakefield and Newmark, are scheduled to release their earnings reports next week.
Source: Original reporting by Randyl Drummer, CoStar News.
