Newmark Group, Inc. (Newmark) operates as a commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers. The company offers a diverse array of integrated services and products designed to meet the full needs of the company's clients.
The company’s investor/owner services and products include: capital markets consist of investment sales and commercial mortgage brokerage (which includes the placement of debt, equity rai...
Newmark Group, Inc. (Newmark) operates as a commercial real estate advisor and service provider to large institutional investors, global corporations, and other owners and occupiers. The company offers a diverse array of integrated services and products designed to meet the full needs of the company's clients.
The company’s investor/owner services and products include: capital markets consist of investment sales and commercial mortgage brokerage (which includes the placement of debt, equity raising, structured finance, and loan sales on behalf of third parties); landlord (or agency) representation leasing; valuation and advisory; property management and flexible workspace solutions for owners; the company’s leading commercial real estate technology platform and capabilities; due diligence, consulting and other advisory services; GSEs and FHA lending, including multifamily lending and loan servicing; limited loan servicing and asset management; and business rates for the U.K. property owners.
The company’s corporate or occupier services and products include: tenant representation leasing; GCS, which includes real estate, workplace and occupancy strategy, corporate consulting services, project management, lease administration and facilities management; flexible workspace solutions for occupiers; and business rates for the U.K. occupiers.
The company has relationships with many of the world's largest commercial property owners, real estate developers and investors, as well as Fortune 500 and Forbes Global 2000 companies. For the year ended December 31, 2024, the company generated revenues primarily from commissions on leasing and capital markets transactions, consulting and technology user fees, property and facility management fees, and mortgage origination and loan servicing fees. The company’s revenues are widely diversified across service lines, geographic regions and clients, with its top 10 clients accounting for approximately 9.1% of its total revenue on a consolidated basis for the year ended December 31, 2024.
Services
Newmark offers a diverse array of integrated services designed to meet the full needs of both real estate investors/owners and occupiers.
Real Estate Investor/Owner Services and Products
Capital Markets. The company offers a broad range of capital markets services, including investment sales and mortgage brokerage (which includes debt and equity placement, fundraising, and recapitalization) of individual assets, portfolios and operating companies. The company matches capital providers with capital users. The company's capital markets professionals have deep relationships with investors and capital sources of various composition, including government sponsored agencies, insurance companies, pension funds, real estate investment trusts, private funds, private investors, developers and construction firms.
Landlord (or 'Agency') Representation Leasing. The company understands the nuanced needs of corporate, institutional, family and entrepreneurial property owners, and develop customized leasing strategies to help them attract and maintain the right tenants. Armed with both on-the-ground intelligence and comprehensive data, the company helps landlords find opportunities and make sound decisions.
V&A. The company's V&A professionals execute projects of nearly every size and type, from single properties to large portfolios, existing and proposed facilities, and mixed-use developments across the spectrum of asset classes. Clients include banks, pension funds, equity funds, REITs, insurance companies, developers, corporations, and institutional capital sources. These institutions utilize the advisory services the company provides in their loan underwriting, construction financing, portfolio analytics, feasibility determination, acquisition structures, litigation support, property tax, and financial reporting.
Property Management and Flexible Workspace Solutions. The company provides property management services on a contractual basis to owners and investors in office (including medical and life sciences offices), industrial and retail properties. Property management services include building operations and maintenance, vendor and contract negotiation, project oversight and value engineering, labor relations, property inspection/quality control, property accounting and financial reporting, cash flow analysis, financial modeling, lease administration, due diligence and exit strategies. The company also offers amenity-rich and flexible work environments across a network of offices, located primarily in Europe and North America. These businesses also give the company better insight into its clients’ overall real estate needs.
The U.K. Business Rates Services. Business rates is a property tax payable on most commercial properties in the U.K. This tax is based on government valuations based on market rental value that are reassessed every three years. The owner and occupier of each property has a right to challenge the level of value assessed on their premises and, where applicable, can apply for relevant reliefs and exemptions. The company’s success in helping clients save on this tax is underpinned by the deep knowledge that its team has of property sectors, property cases, market movements, and complex legislative procedures. The company is an established market leader in the U.K. with over 1,800 corporate clients.
Leading Commercial Real Estate Technology Platform and Capabilities. Investing in digital solutions has become imperative and the company remains dedicated to creating customer-centric technology that optimizes the company's business methods while keeping its workforce and clients safe. The company's multi-faceted real estate database continues to grow, as does the company's commitment to providing innovative, value-added technological solutions across the company's service lines, which enables the company's professionals to provide clients with data-driven advice and analytics with expediency. The company's solutions are designed to increase operational efficiency, realize additional income, and/or generate cost savings for the company's professionals and clients.
Due Diligence, Consulting, Advisory Services and Other Services. The company provides commercial real estate due diligence consulting and advisory services to a variety of clients, including lenders, investment banks and investors. The company's core competencies include underwriting, modeling, structuring, due diligence, and asset management. The company also offers clients cost-effective and flexible staffing solutions through both on-site and off-site teams.
GSE/FHA Lending. The company operates a leading commercial real estate finance company focused on the origination and sale of multifamily and other related commercial real estate loans through government-sponsored and government-funded loan programs, as well as the servicing of loans originated by it and third parties. The company participates in loan origination, sale, and servicing programs operated by two GSEs, Fannie Mae and Freddie Mac. The company also originates, sells and services loans under HUD FHA programs; and is an approved MAP and HUD LEAN lender, as well as an approved Ginnie Mae issuer.
Through HUD's MAP and LEAN Programs, the company provides construction and permanent loans to developers and owners of multifamily housing, affordable housing, senior housing and healthcare facilities. The company is one of 25 approved lenders that participate in the Fannie Mae DUS program and one of 23 lenders approved as a Freddie Mac seller/servicer. The company has established a strong credit culture over decades of originating loans and remain committed to disciplined risk management from the initial underwriting stage through loan payoff.
Loan Servicing and Asset Management. In conjunction with the company's origination services, the company sells the loans that the company originates under GSE and FHA programs and retain the servicing of those loans. The company's GSE/FHA loan servicing portfolio provides a stable, predictable recurring stream of revenue to the company over the life of each loan. The typical multifamily loan that the company originates and services under these programs is either fixed or variable rate and includes significant prepayment penalties. These structural features generally offer prepayment protection and provide more stable, recurring fees. In addition to the company's GSE/FHA portfolio, the company also services loans for other lenders, as well as offers limited servicing, special servicing, and asset management for a wide range of commercial and multifamily loans.
The company's servicing operations are rated by Fitch, S&P, and Kroll for commercial loan primary and special servicing and consist of a team of professionals dedicated to primary, limited, special servicing and to asset management. These professionals focus on financial performance and risk management to anticipate potential property, borrower, or market issues. Portfolio management conducted by these professionals is not only a risk management tool, but also leads to deeper relationships with borrowers, resulting in continued interaction with borrowers over the term of the loan, and potential additional financing opportunities.
Real Estate Corporate or Occupier Services and Products
Tenant Representation Leasing. The company represents commercial tenants in virtually all aspects of the leasing process (often in conjunction with GCS), including space acquisition and disposition, strategic planning, site selection, financial and market analysis, economic incentives analysis, lease negotiations, lease auditing and project management. The company assists clients by defining space requirements, identifying suitable alternatives, recommending appropriate occupancy solutions, negotiating lease and ownership terms with landlords and minimizing real estate costs and associated risks for clients through analyzing, structuring and negotiating business and economic incentives, as well as advising on relevant sustainability and environmental issues. Fees are typically based on a percentage of the total financial consideration of the lease commitment for executed leases and are generally earned when a lease is signed. In many cases, landlords are responsible for paying the fees. The company uses innovative technology and data to provide tenants with an advantage in negotiating leases, which has contributed to the company's market share gains.
Global Corporate Services. GCS is the company's consulting and outsourcing services business that focuses on reducing occupancy expenses and improving efficiency for corporate real estate occupiers, with significant, often multi-national presences. The company provides beginning-to-end corporate real estate solutions for clients. GCS strives to make its clients more effective by optimizing real estate usage, managing overall corporate footprint expenses, and improving workflow and human capital efficiency through large scale data analysis and the company's industry-leading technology.
The company provides real estate strategic consulting services to the company's clients, including Fortune 500 and Forbes Global 2000 companies, owner-occupiers, government agencies, as well as organizations in healthcare and higher education. The company also provides enterprise asset management information consulting and technology solutions which can yield cost-savings for the company's client base. The company's consulting services include financial integration, asset and portfolio strategy, location strategy and optimization, workplace strategies, energy and sustainability, workflow and business process improvement, merger and acquisition integration and industrial consulting. The company also offers clients value added services including project management, real estate and lease administration and facilities management. Fees for these services are on a negotiated basis and are often part of a multi-year services agreement. Fees may be contingent on meeting certain financial or savings objectives with incentives for exceeding agreed upon targets.
Whether a client manages its real estate function in-house (insource) or has engaged an external provider (outsource), GCS aims to create value by securing accounts that are first generation outsourced or by gaining outsourced market share. GCS often provides the company with recurring and/or contractual revenue streams when it enters into multi-year contracts for ongoing services, such as project and facilities management and real estate and lease administration over the course of the contract.
Business Partners
In certain smaller U.S. and international markets in which the company does not maintain Newmark-owned offices, it has agreements in place to operate on a collaborative and cross-referral basis with certain independently owned offices in return for contractual and referral fees paid to the company and/or certain mutually beneficial co-branding and other business arrangements. These independent offices are referred to as business partners. These business partners may use some variation of the company's branding in their names and marketing materials. These agreements typically take the form of multi-year contracts and provide for mutual referrals in their respective markets, generating additional contract and brokerage fees. While the company does not derive a significant portion of its revenue from these relationships, they do enable it to seamlessly provide service to its mutual clients. These business partners give the company's clients access to additional brokerage professionals with local market research capabilities, as well as other commercial real estate services in locations where the company does not have a physical presence.
Technology and Data Analytics
The company recognizes the transformative impact of technology on the broader commercial real estate industry and on evolving client expectations. Newmark seeks to redefine industry standards and to leverage data-driven market, client, and property insights, alongside seamless transaction management and the company's proven client servicing capabilities. The tight partnership between Newmark producers and the company's technology teams should enable cutting-edge solutions and highly productive technology investments. With a focus on the future and anticipating client needs, the company expects this synergy to position its professionals with a competitive edge, as detailed below.
Integrated Capital Markets Platform. The company's suite of capital markets products, intended for use by the company's investment sales, debt financing, and debt servicing personnel, captures critical data, which is then fed into the company's comprehensive capital markets insights platform. This integration can empower the company's professionals with valuable insights into investor, lender, and seller activity.
Newmark's end-to-end digitization of the loan lifecycle used by the company's professionals connects pre-screeners, processors, business support, closers, underwriters, traders, and servicing on one platform. Through standardized workflows, automation, and system integrations, the company's digital loan underwriting tool is designed to reduce data input redundancy, improve productivity and accuracy, and reduce cycle times.
Newmark's internal deal management and customer relationship management solution facilitates the entire deal management process from lead generation to transaction closing. It provides a centralized platform for managing clients and prospects and allows for efficient tracking of investor activity through its transaction management module. Additionally, the solution integrates full-service conversion opportunities, which may enhance the potential for increased revenue.
Business Intelligence. Newmark offers internal self-service analytics dashboards that consolidate data from diverse sources, providing the company's professionals with valuable insights and intelligence to assist in their business pursuits. Newmark's GCS technology solution, Newlitic, aggregates and integrates information across an enterprise's real estate portfolio into one single platform. A flexible and intuitive tool for commercial real estate professionals, this software offers capabilities for multiple management reporting needs-including occupancy utilization, portfolio and lease administration, transaction management, capital projects and facilities management-through customizable web dashboards.
Property Intelligence. Newmark's interactive site selection intelligence platform offers clients extensive market and property intelligence to aid in their location decision-making process. By leveraging data visualization, the company's interactive platform enables clients to make informed decisions based on demographics and logistics. The company's digital tourbook generator, Spaceful, enhances the tour process for the company's clients through an intuitive mobile user experience. It allows brokerage teams to collaborate and make real-time adjustments, creating elegant tourbooks with auto-generated maps quickly. This software furthers the company's commitment to sustainability, by reducing the need for paper and streamlining collaboration and touring.
Full-Service V&A Product Suite. Newmark's V&A digital solutions used by the company's professionals contain extensive repositories of sales data, comparable leases, and building operating expenses. Use of such datasets is intended to reduce appraisal modeling time while improving report accuracy. The company's property management digital solution used by the company's professionals is designed to improve visibility into sales pipelines, new business pursuits, service agreements, and vendor management revenue. Processes are streamlined through centralization, notification automation, and simplified templates.
Clients
The company's clients include a full range of real estate owners, occupiers, tenants, investors, lenders, small and medium size businesses, as well as multi-national corporations and some of the largest institutional owners of real estate in the world in numerous markets and across multiple property types, including office, retail, industrial, multifamily, student housing, hotel/lodging, data centers, healthcare, self-storage, land, condominium conversions, subdivisions and special use. The company's clients vary greatly in size and complexity, and include for-profit and non-profit entities, governmental entities, and public and private companies.
Sales and Marketing
The company seeks to develop its brand and highlight its expansive platform while reinforcing the company’s position as a leading commercial real estate services firm globally through brand and corporate marketing, local marketing of specific business lines and targeted brokerage professional marketing efforts, as described below.
Global Brand and Corporate Marketing. Globally, the company utilizes media relations, industry sponsorships, social media, sales collateral and targeted advertising in trade and business publications to develop and market its brand. The company’s multi-market business groups provide customized collateral, website and technology solutions designed to address specific client needs.
Local Market Expertise and Targeted Brokerage Professional Efforts. On a local level, the company's offices (including those owned by the company and those independently owned by business partners) have access to tools and templates that provide the company's revenue-generating professionals with the market knowledge. These tools and templates include proprietary research and analyses, web-based marketing systems and ongoing communications and training about the company's depth and breadth of services. The company's professionals use these local and national resources to participate directly in selling to, advising and servicing clients. The company provides marketing services and materials to certain business partners as part of an overall agreement allowing them to use the company's branding. The company also benefits from shared referrals and materials from local offices.
Leading Research Capabilities. The company invests in and relies on comprehensive and proprietary research to support and guide the development of real estate and investment strategy for the company's clients. Research plays a key role in keeping colleagues attuned to important trends and changing conditions in world markets. The company disseminates this information internally and externally directly to prospective clients and the marketplace through the company website, direct email, and social media.
Competition
The company competes with other large multi-national firms that have similar or overlapping service competencies to the company, including CBRE Group, Inc., Colliers International Group Inc., Cushman & Wakefield PLC, Jones Lang LaSalle Incorporated, and Savills plc.
In addition, more specialized large firms like Berkadia Proprietary Holding LLC, Eastdil Secured LLC, Knight Frank LLP, Marcus & Millichap Inc., and Walker & Dunlop, Inc. compete with the company in certain service lines or property types.
Seasonality
Due to the strong desire of many market participants to close real estate transactions prior to the end of a typical calendar year, the company's business exhibits certain seasonality, with the company's revenue tending to be lowest in the first quarter (year ended December 2024) and strongest in the fourth quarter. This is particularly true for the industry across leasing, capital markets, and V&A. For the five years from 2020 through 2024, the company generated an average of approximately 21% of its revenues in the first quarter and 30% of its revenues in the fourth quarter.
Partnership and Equity Overview
The company control the general partner of Newmark Holdings. The limited partnership interests in Newmark Holdings consist of: a special voting limited partnership interest held by the company; exchangeable limited partnership interests held by Cantor; founding/working partner interests held by founding/working partners; limited partnership units, which consist of a variety of units that are generally held by employees such as REUs, RPUs, PSUs, PSIs, PSEs, LPUs, APSUs, APSIs, AREUs, ARPUs and NPSUs; and Preferred Units, which are working partner interests that may be awarded to holders of, or contemporaneous with, the grant of certain limited partnership units.
History
The company was founded in 1929. It was incorporated in 2016. The company was formerly known as Newmark Grubb Knight Frank Capital Group and changed its name to Newmark Group, Inc. in October 2017.
