Households may still be suffering from the lingering effects of the Great Recession, but life goes on for businesses. That’s increasingly true for the commercial real estate business, which took a huge hit in the initial months of the crisis.
Commercial real estate firm CB Richard Ellis (CBG) says business is going well. For the second quarter of 2011, which ended June 30, revenue rose 21 percent to $1.4 billion, while net income attributable to the company rose 12 percent to $61.2 million.
Revenue growth was strong across all geographies especially in the company's leasing investment sales and outsourcing businesses.
"Despite an uneven and somewhat subdued global economic recovery, and a heightening of sovereign debt concerns in Europe during the last few months, we were pleased to observe continued commercial real estate recovery in the second quarter of 2011 as evidenced by our very strong revenue growth," says company CEO Brett White.
Eye on Europe
The company is, however, keeping an eye on the global economy, especially if a debt crisis in Europe sparks a run on banks there and elsewhere and threatens to throw the global economy into a recession.
CBRE hasn't seen any upgrades or downgrades in a while, although Barclays Capital reiterated its overweight recommendation on the stock three times this year, once in February, again in April and then again in August.
U.S. commercial real estate prices as measured by Moody's/REAL Commercial Property Price Index recorded a 0.9 percent increase in June, the second consecutive monthly increase, Moody's reports.
"The June increase represents a firming up of the market bottom," Tad Philipp, Moody's Director of Commercial Real Estate Research, says in a statement. Expect third quarter results in late October.
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