Jones Lang LaSalle, a prominent Chicago-based commercial real estate developer, reported a decline in net income and revenue for the third quarter, reflecting the ongoing slump in the commercial real estate market.
In Q3 2021, the company recorded earnings of $59.7 million, equivalent to $1.23 per share. This is a significant drop from last year’s Q3 earnings of $140.2 million, or $2.88 per share. After adjusting for certain items, Jones Lang LaSalle reported adjusted earnings of $2.01 per share, meeting the average Wall Street target.
The company’s Q3 revenue also saw a slight decrease of 1%, falling to $5.11 billion. Despite this decline, it slightly surpassed the mean analyst estimate of $5.04 billion.
Commercial real estate developers have faced challenges in recent quarters due to a combination of factors, including the enduring work-from-home trend and rising mortgage rates. These factors have contributed to a slowdown in investment sales and leasing transactions.
CEO Christian Ulbrich commented on the industry-wide slowdown in the third quarter, acknowledging the persisting challenges faced by commercial real estate developers.