The Zacks Real Estate Operations industry, which includes companies like CBRE Group, Jones Lang LaSalle, and Newmark Group, is positioned to benefit from growing demand for outsourced real estate services and advancements in AI and data tools. The industry is anticipated to see strong performance as demand for leasing, especially in industrial and healthcare sectors, continues to rise. However, challenges such as geopolitical instability and macroeconomic uncertainties are causing clients to focus on cost management, leading to delays in transaction closings.
Currently, the industry holds a Zacks Industry Rank #92, placing it in the top 38% of 245 Zacks industries. Over the past year, the industry’s growth has been modest, advancing 10.2%, significantly lower than the broader Finance sector’s 14.2% and the S&P 500’s 34.2%. Additionally, the industry’s current forward 12-month price-to-earnings ratio is 13.32, compared to the S&P 500’s 21.83, suggesting room for valuation improvement.
In the first quarter of 2026, Jones Lang LaSalle reported a record revenue of $6.39 billion, while Newmark achieved $846.5 million in revenues, marking the seventh consecutive quarter of double-digit growth. CBRE recorded a 20% increase in revenue during the same period. Each of these firms has raised their EPS guidance for 2026, signaling strong growth potential amid ongoing investments in technology and market adaptation strategies.
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