Cushman & Wakefield increased revenue 5% year over year in the first quarter of 2025 to $2.3 billion, led by strong leasing performance in the office and industrial sectors in the Americas, the firm said Tuesday in its Q1 earnings report.
In services over the last two years, the firm’s global occupier services team won all or a material part of the largest outsourcing deals in the market, Cushman & Wakefield CEO Michelle MacKay said on an earnings call. Organic services fee revenue in the Americas grew 6% year over year, driven by strength in facilities management and facility services, CFO Neil Johnston said.
“Our CW services business, once referred to as our janitorial business, is now 70% mechanical and engineering following a major contract win, making it more technical and a more strategic fit for us,” MacKay noted.
Cushman & Wakefield’s leasing segment increased revenue 14% year over year to $341 million in the quarter, led by strength in office, per the firm’s earnings presentation.
“America's leasing remained a standout, growing by 14% in Q1, our third consecutive quarter of double-digit growth,” Johnston said. “We experienced solid demand across the industrial and office sectors during the quarter, and our leasing pipeline has remained relatively stable.”
Tariff uncertainty also failed to cloud the firm’s outlook, with MacKay saying the tariff uncertainty hasn’t materially impacted the sector. “We're continuing to see improving trends in office and strong demand for high quality products,” she said, adding that 90% to 95% of Cushman & Wakefield’s clients “are going forward with the decisions on the existing timeline they have,” through mid-April.
“We haven’t seen the uncertainty in the economy impact occupiers’ confidence to move forward with their workplace strategies or signing long-term leases. Lease terms are getting longer, in fact, reaching about 77 months on average in the first quarter,” MacKay said.
Clients that are opting to delay decisions plan to make them later in 2025, according to MacKay. “We're not witnessing … a freeze in decision making, and that's in large part why we see our Q2 numbers and frankly, our 2025 performance staying intact.”
