As Transactions Lag, JLL Leans Into Workplace and Advisory Services

• JLL’s surprise growth: Second quarter earnings show that JLL’s service heavy model was able to grow even as the industry struggles.

• Affordable bedroom community: New Rochelle cut rents even as its population grew through smart urban planning.

• Institutional capitalization: The Carlyle Group has been able to raise a large fund for investments in the stronger sectors of CRE.

• Coverage crunch: Wireless carriers have stepped back from funding so buildings must invest in their own solutions.

• Upcoming webinar: How AI and data tools are transforming energy management in commercial real estate asset operations. Sign up

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As Transactions Lag, JLL Leans Into Workplace and Advisory Services

Debt advisory revenue surged over 25%, helping offset weak investment sales in Capital Markets

Jones Lang LaSalle’s second quarter earnings are out and they show a company leaning into its strengths while navigating a still-uneven commercial real estate market. Revenue rose 10% year-over-year to $6.25 billion, beating expectations. The company raised full-year EBITDA guidance and made it clear that while transaction volumes remain sluggish, the underlying service-driven engine is firing. “Our diversified platform continues to deliver, especially in project and facilities management,” said CEO Christian Ulbrich. “We’re seeing strong momentum in areas less sensitive to interest rates.”

The bright spot in Capital Markets was debt advisory, which surged more than 25% year-over-year, offsetting some of the softness in investment sales. Leadership emphasized that capital is flowing—but cautiously—and that clients are seeking expert guidance to navigate financing challenges. “It’s a flight to advisors with scale,” said Karen Brennan, CFO. “In this environment, credibility and access matter more than ever.” The company’s pipeline is growing, and JLL signaled confidence in a late-2025 pickup for transaction volumes, especially if interest rate cuts materialize.

Meanwhile, JLL continues to expand its project and development services as companies rethink space needs and workplace strategy. The firm is capitalizing on a global trend of rightsizing and upgrading, often on tight timelines. “We’ve seen a major uptick in workplace transformation projects,” Ulbrich noted. “These are long-cycle revenue streams that support recurring earnings and deepen our client relationships.” JLL’s scale allows it to turn the office macroeconomic headwinds into opportunity by offering both cost containment and strategic insight.

From a financial standpoint, the company is staying disciplined. JLL now holds more than $3.3 billion in liquidity. Management reaffirmed a commitment to shareholder returns, with share repurchases continuing in Q2 and more expected in the back half of the year. “We are being prudent stewards of capital,” Brennan emphasized. “At the same time, we’re not backing away from investing in high-growth areas like data analytics and sustainability services.”

Some of that money might go into strategic acquisitions. When talking about the successes the company has had integrating tech into its growth strategy Brennan said, "We will continue to invest in the organic growth of these businesses and assess M&A opportunities on a risk-adjusted return basis as part of our disciplined approach to capital allocation."

JLL’s ability to turn a profit even when the industry is struggling shows exactly how powerful and resilient the company is. Its asset-light, service-heavy, and tech-forward business model is helping guide it through this extended period of high interest rates and low transaction volume. As interest rates continue to recalibrate the value of space, JLL will continue to focus on guiding clients through transformation—rather than just transacting new deals. “This is not just a rebound,” Ulbrich said. “This is a repositioning for the next era of commercial real estate.”

Overheard

Smart Buildings

New Rochelle’s Policy Playbook Holds the Key for Profitable Affordability

New Rochelle—a 40-minute train ride from Midtown—has quietly become a template for affordable housing in the NYC metro area. Over the past decade, the city added more than 4,500 new housing units, with 6,500 more in the pipeline, boosting supply by roughly 37%. Yet despite this growth, median rents have only climbed 1.6% since 2020, and even fell 2% from 2020 to 2023—a stark contrast to the 25%‑plus rent spikes seen elsewhere in the region.

The city credits its success to a pro-development playbook that includes standardized zoning, tax incentives, and guaranteed 90-day approvals for eligible projects. The city has also doubled down on transit oriented developments, turning what used to be a sleepy exurb into a feeder town for Manhattan's growing labor force. RXR Realty, the master developer since 2014, has invested over $1 billion, delivering towers like One Clinton Park—now 92% leased—and ensuring that 10% of all new units are affordable. Even as construction disruption and integration concerns emerge, local officials are reinvesting developer fees into infrastructure and homebuyer support.

New Rochelle’s experiment is a powerful reminder: supply-side policy and streamlined processes can reshape affordability. Cities struggling with high costs could look to this example; indeed, states like California and Oregon, as well as new federal housing legislation, are already moving in this direction. The success here suggests that increased multifamily development, even at higher-end price points, can exert downward pressure on regional rents and attract a new commuter base.

Institutional Confidence in CRE Returns as Carlyle Closes $9 B Real Estate Fund

Carlyle has closed its tenth U.S. opportunistic real estate fund, Carlyle Realty Partners X (CRP X), with a record $9 billion in capital commitments—up from $8 billion in its previous fund in 2021. The fundraising comes amid one of the most challenging capital-raising environments in memory, with global real estate allocations falling to roughly $131 billion in 2024—the lowest since 2012.

Carlyle is deliberately avoiding structurally impaired property categories. The new fund will invest across residential, self-storage, and industrial sectors, while steering clear of office, hotel, and traditional retail assets, which continue to underperform in the post‑pandemic environment. Rob Stuckey, head of U.S. real estate, said, “This is a compelling moment to invest, as we see improving fundamentals across our target sectors coupled with an environment of relatively constrained liquidity."

Carlyle’s ability to raise such a large fund underscores deep institutional confidence in certain subsectors while signaling continued investor wariness around office, lodging, and retail. Groups like Carlyle are often considered "smart money," and now that they have been public about their decision to forgo investment in office and retail, other investors might do the same. This is also a signal for other institutional investors that investment theses that align capital with structural tailwinds—e-commerce logistics, suburban housing demand, and flexible storage solutions—can still attract massive funding, even when the traditional CRE landscape remains under pressure.

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