How Are The Big Firms Doing?

All of the major, national real estate brokerage frims are feeling financial pressure due to current market conditions.

Most of the top firms have very high-end office locations in many of the major cities across the country and globe. Large fixed overhead and low income is a rather uncomfortable mixture.


Jones Lang LaSalle reported a net loss of $14 million for the Quarter than ended on June 30, 2009,. Year to date loss has been $76 Million.

Also, Grubb & Ellis Co, as of 8-17-09 faces delisting from the New York Stock Exchange because its total market capitalization was less than

$50

million.

What's happening to these firms? Lack of business. Lack of sales and leasing across the board.

Example, Abercrombie & Fitch Co may cut back some of its stores. They have 270 leases up for renewal through 2011. SOme insiders say as many as 50 to 70 under performing stores may be "going dark."

Williams Sonoma stated on 8-27-09 that it has negoiated rent reduction with 15 of its stores.

Retail firms have been hit hard in the past year are not seeking new locations or expanding.


BIll McInerney