CRE Services Companies: Notes From CEO Discussion w/ Newmark’s Barry Gosin

Research evidence excerpt

CRE Services Companies: Notes From CEO Discussion w/ Newmark’s Barry Gosin

d bode well for rents, especially

given market rents that still average $80/sf and construction costs north of $2,500/sf. Outside

of office, it was noted that after a soft 2025, industrial leasing is back and stronger.

On the topic of commission rates on investment sales, debt arrangements, and leasing, it noted

that the compression of fees has already occurred, with a real scaling down of fees as you go

up in deal size. It does not see this as being a factor on a go-forward basis.

NMRK recently appointed Kyle Lutnick as the company's chief strategy officer. Mr. Lutnick

is a young executive that is spending time with senior executives in the organization with an

eye toward technology and AI.

On the topic of AI, Mr. Gosin expressed his view that the biggest benefit will be on the

productivity side for its people, with less expectations around margins being notably

improved. It believes that its platform has been ahead of the curve in the implementation of

this technology, and it is allowing its producers to simply spend more time with clients and

driving the business. It is the client engagement NMRK seems to be most excited about as

it relates to AI.

With regards to NMRK’s data center business, it believes it is the U.S. leader in arranging debt

(i.e., Stargate) and equity capital in the space, and it is growing in Europe; the data is not great

in terms of tracking the intermediary market share in this segment. NMRK does some data

center leasing, but it is looking to do more on this front. It expressed its view that as local

opposition to data centers grows, new data centers may be paired with advanced

manufacturing facilities so that more long-term jobs are added to these markets. It believes