Weekly Real Estate News
Summary
Newmark Q3 2026 revenue rose 12.7% to $973.2M; leasing fees increased 26.5%, capital markets revenue fell 4.4%, and mortgage origination fees fell 21.1%. Newmark lowered 2026 revenue, adjusted EPS and EBITDA guidance due to rate volatility and uncertain closings.
Newmark’s third-quarter revenue reached a record $973.2 million, but the commercial real estate brokerage lowered its full-year outlook as volatile borrowing costs disrupted the timing of investment sales and debt transactions.
The company reported Thursday that revenue increased 12.7% from $863.5 million a year earlier. Leasing commissions climbed 26.5% to $308.6 million, while capital markets revenue declined 4.4% to $288.2 million. The uneven performance helps explain why Newmark expects a stronger year overall yet sees less revenue than it projected three months ago.
In its October 29 financial release, Newmark reduced its 2026 revenue guidance to $3.7 billion–$3.8 billion from $3.775 billion–$3.875 billion. Its adjusted earnings-per-share forecast moved to $1.80–$1.90 from $1.87–$1.98. Adjusted EBITDA guidance fell to $629 million–$667 million from $656 million–$694 million. Those are management forecasts, subject to deal closings and market conditions.
Newmark’s management said transaction pipelines remained active, but rising rates and uncertainty over the timing of closings made the earlier targets harder to reach. That distinction matters for investors and property owners: a signed mandate or active sales process does not produce a commission until the relevant transaction is completed.
Leasing and recurring services carry the quarter
Management services, servicing fees and other revenue rose 18.3% to $376.3 million. The company attributed the increase to outsourcing growth, stronger valuation and advisory work, and acquisitions completed since the comparable period. These services provide revenue less directly tied to individual property sales than capital markets brokerage.
Leasing was particularly strong in industrial and office assignments in several West Coast markets and Texas, executives said on the earnings call. Newmark’s investor materials show the leasing and other commissions line increased from $244 million to $308.6 million. That is a fee-revenue comparison, not a measure of total U.S. office or warehouse leasing square footage.
Capital markets told a more complicated story. Newmark said investment-sales volumes increased 33.4%, with activity led by senior housing, affordable housing, industrial and retail properties. Yet capital markets fee revenue declined because mortgage origination activity weakened. Fees from commercial mortgage origination, net, fell 21.1%, according to the company’s financial disclosure.
Executives pointed to a difficult comparison with the prior year’s debt volumes and estimated that broader agency mortgage activity declined about 30% during the quarter. Those industry figures are management’s assessment, rather than a new government statistical release. The company said it gained share in combined Fannie Mae and Freddie Mac business over the trailing 12 months.
| Business | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Management, servicing and other | $376.3 | $318.1 | +18.3% |
| Leasing and other commissions | $308.6 | $244.0 | +26.5% |
| Capital markets | $288.2 | $301.3 | −4.4% |
| Total | $973.2 | $863.5 | +12.7% |
Newmark reported GAAP net income attributable on a fully diluted basis of $67.4 million, or $0.27 per share, compared with $64 million, or $0.25 per share, a year earlier. Adjusted EPS was $0.48, up from $0.42, and adjusted EBITDA increased 14.6% to $166.4 million. Adjusted earnings and EBITDA exclude items included in GAAP results; they should not be treated as cash earnings or used interchangeably with net income.
The cash-flow comparison deserves attention. Newmark used $286.1 million in operating cash during the quarter, versus $112.6 million provided in the prior-year period, according to its earnings materials. Brokerage working capital, commissions and the timing of collections can make a single quarter uneven, but the reversal tempers a reading based only on adjusted profit growth.
Rates cloud the next round of deals
Management expects capital markets volumes to remain pressured through at least the first half of 2027 if rate volatility persists. It also anticipates a slower pace of leasing growth after this year’s double-digit gains, while recurring services could continue growing at double-digit rates. Newmark described potential 2027 earnings as approximately 10% above or below its expected 2026 results, excluding new acquisitions; that range is an outlook, not a contracted result.
Newmark’s chief executive succession remains underway. Barry Gosin told analysts that internal and external candidates were being evaluated and that the company expected to identify a successor by year-end. A leadership change during a period of market volatility adds another variable to its 2027 execution.
The company ended September with approximately $240 million in cash, $877.5 million in corporate debt and reported net leverage of about one times. Its board reauthorized a $400 million share repurchase program on October 28. Those measures provide capital flexibility, though repurchases compete with acquisitions and operating investments for cash.
Newmark’s experience differs from the performance reported a day earlier by JLL, whose capital markets services revenue increased. The companies’ service mixes, geographic footprints and reporting definitions differ, so the contrast should not be mistaken for a single industry-wide trend. Taken together, the results show that leasing, property services, investment sales and debt placement are moving at different speeds.
For borrowers, the most immediate implication is that stronger property transaction interest has not eliminated financing friction. Newmark’s latest guidance assumes enough deals close to produce another record year, while acknowledging that the calendar and cost of capital have become harder to predict.
