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Chicago, IL – February 19, 2026 – Today, Zacks Equity Research discusses CBRE Group, Inc. CBRE, Jones Lang LaSalle JLL and Newmark Group, Inc. NMRK.
Industry: Real Estate Operations
Link: https://www.zacks.com/commentary/2871197/3-real-estate-operations-stocks-to-consider-despite-industry-woes
The Zacks Real Estate Operations industry keeps facing pressures from geopolitical instability, macroeconomic uncertainties and policy changes. On top of that, clients remain focused on cost management and postponing their decisions on property purchases and leases, especially in select asset classes.
Even so, the growing demand for outsourced real estate services and other emerging trends is expected to continue to support the industry’s growth. Additionally, strategic investments in technology are helping companies strengthen their competitive edge. Companies like CBRE Group, Inc., Jones Lang LaSalle and Newmark Group, Inc. are set to benefit from these favorable trends.
The Zacks Real Estate Operations industry comprises companies that provide leasing, property management, investment management, valuation, development services, facility management, project management, transaction and consulting services, among others. However, real estate investment trusts, or REITs, are excluded from this group.
Economic trends and government policies impact the real estate market (both global and regional), which determines the industry’s performance. Economic activity, employment growth, office-based employment, interest-rate levels, costs and availability of credit, tax and regulatory policies and the geopolitical environment are the major factors shaping the real estate market’s fate. Also, pandemic-induced public health challenges and geopolitical issues have affected property sales and the leasing lines of businesses.
Global Tensions Disrupt Supply Chains & Growth: Geopolitical instability and macroeconomic uncertainties remain key factors impacting the industry's performance. Ongoing conflicts in regions like Ukraine and the Middle East have strained construction material supply chains and fueled persistent inflationary pressures via elevated energy costs. These factors led to U.S. policy shifts, including tariffs and immigration reforms, heightening uncertainty. 2025 saw considerable disruption from erratic trade policies and tempered confidence.
Companies with global supply chains face complex trade compliance and cross-border issues, slowing development projects. Moreover, clients are likely to continue to adopt a cautious approach amid macroeconomic uncertainty. As a result, investors’ desire for greater price discovery will continue to cause a delay in the closing timeline for transactions.
Demand Across Certain Real Estate Categories Hurt: The pandemic fundamentally altered usage patterns across several US commercial real estate categories. Although companies are encouraging employees to return to the office from the hybrid working model, the transition is gradual and is deterring tenants from making long-term commitments. Thus, pre-pandemic office occupancy levels are expected to remain out of reach in the near to intermediate future.
Ongoing market volatility and geopolitical uncertainties have prompted customers to tighten cost controls and postpone their decision-making with respect to leasing. Moreover, the convenience of online shopping continues to attract customers. As a result, this is likely to impact brick-and-mortar retail stores.
Outsourcing in the Real Estate Market to Gain Further Momentum: Corporations, public sector organizations, healthcare providers, and companies in finance, industrial sectors, life sciences and technology are increasingly opting to outsource their real estate needs. They are entrusting third-party real estate experts to achieve improved execution and efficiency. Companies are increasingly seeking strategic guidance on transforming their workplaces and operations to strengthen culture, draw top talent and drive better results.
These developments are creating opportunities for real estate operations participants. Key players in the industry are taking advantage of this shift, leading to the acquisition of new clients and the expansion of existing ones. Moreover, companies in the industry are investing heavily in proptech, artificial intelligence (AI) and data tools to enhance efficiency, provide superior client services and contribute to market share expansion.
The Zacks Real Estate Operations industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #144, which places it in the bottom 41% of 243 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bleak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s positioning in the bottom 50% of the Zacks-ranked industries is a result of the downward earnings per share outlook for the constituent companies in aggregate. Looking at the aggregate earnings per share estimate revisions, it appears that of late, analysts are losing confidence in this group’s growth potential. Since February 2025, the industry’s earnings per share estimates for 2025 have moved up 1.40%, while for 2026 it moved down 2.40%.
However, before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.
The Zacks Real Estate Operations industry has underperformed the broader Zacks Finance sector and the S&P 500 composite over the past year.
The industry has advanced 8.8% during this period compared with the S&P 500’s return of 13.6% and the broader Finance sector’s growth of 10.7%.
On the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing Real Estate Operations stocks, we see that the industry is currently trading at 15.60X compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 22.48X. The industry is trading below the Finance sector’s forward 12-month P/E of 16.53X.
Over the last five years, the industry has traded as high as 22.76X and as low as 9.87X, with a median of 15.64X.
Newmark Group, Inc.: Headquartered in New York City, Newmark is a leading commercial real estate services company. It offers advisory and service solutions to major institutional investors, global corporations and occupiers of commercial real estate.
With investments in talent and technology, Newmark is primed for consistent performance and to capture emerging growth prospects. The company gains an edge from operating in the vast and highly fragmented market, fueled by rising demand from institutional investors and the growing trend of outsourcing real estate services.
Newmark Group currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its 2025 and 2026 earnings per share (EPS) is pegged at $1.59 and $1.81, respectively. This suggests an increase of 29.3% and 13.8% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Jones Lang LaSalle Inc.: Headquartered in Chicago, Jones Lang LaSalle offers commercial real estate and investment management services. The company distinguishes itself through a broad and diverse portfolio of products and services, complemented by strategic investments that solidify its competitive position in the market.
Furthermore, JLL’s commitment to delivering superior client service, paired with strategic investment in cutting-edge technology and innovation, positions it for significant growth in market share and winning relationships. Looking ahead, it continues to maintain a robust balance sheet with sufficient liquidity to support agile operations and seize emerging opportunities.
Jones Lang LaSalle has a Zacks Rank of #3 (Hold) at present. The Zacks Consensus Estimate for 2025 and 2026 EPS stands at $17.34 and $20.25, respectively. This indicates an increase of 23.8% and 16.8% year over year.
CBRE Group: Headquartered in Dallas, TX, CBRE Group is a commercial real estate services and investment firm. The company provides a comprehensive suite of services to tenants, owners, lenders and investors across office, retail, industrial, multi-family and other commercial real estate sectors, operating in all major metropolitan markets worldwide.
It has strategically shifted toward a more balanced and resilient business model, capitalizing on its wide-ranging service offerings to fuel long-term, sustainable growth. Its outsourcing business remains a standout performer, bolstered by a robust pipeline that sets the stage for promising future opportunities and market expansion.
CBRE Group currently carries a Zacks Rank #3. The Zacks Consensus Estimate for its 2026 EPS is pegged at $7.38, suggesting 16.7% growth year over year.
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This article originally published on Zacks Investment Research (zacks.com).
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