CBRE Group, JLL, Colliers International and Marcus & Millichap reported strong transaction activity at mid-year 2016, with most reporting solid increases in U.S. leasing and sales, in spite in investor skittishness due to Brexit concerns that have caused delays and some cancellations of transactions across the pond in the UK and Europe.

Executives of the largest public traded CRE services companies were optimistic about business in the second half of the year during second-quarter earnings calls over the last 10 days, pointing out that strong operating fundamentals are continuing across virtually all commercial property segments, helping offset caution among investors concerned about volatile world markets.

“Increased caution among those investors and corporate occupiers will certainly affect full-year volumes,” said JLL President Christian Ulbrich. “But even at this level, that translates to one of the most active years since we started recording global transactional activity in 2003.”

CBRE President and CEO Bob Sulentic noted that, “Our business has performed very well in the first half of 2016, even with a decline in market-wide property sales volumes compared to a year ago.

“It is important to note that market fundamentals in commercial real estate remain in good shape, with the impact of Brexit largely limited to property transactions activity in the UK, and we anticipate solid earnings growth for the year,” Sulentic said.

Marcus & Millichap President and CEO Hessam Nadji said the company grew its business in the first half of this year, increasing overall transaction count by 6.2% and volume by 16.1% in what has been a flat year-over-year investment sales market.

JLL: Transaction Activity Down but Still Strong

JLL reported nearly 15% revenue growth in the Americas in the second quarter, though profits for the region were down nearly 100 basis points versus last year, while leasing grew 13.8%. Capital markets and hotels revenue grew 19.2%, while project and development revenue grew 25.5% from second-quarter 2015.

That compares with a 2% and 18% decline for sales and leasing in the Europe, the Middle East and Africa region, in part due to the economic and political uncertainty related to Britain’s early summer vote to leave the European Union.

JLL revised its outlook for global capital markets activity to a steeper decline of 10%-15% in 2016 to about $600 billion, compared to a forecast decline of 5% in the first quarter and growth of 5% when the company reported fourth-quarter 2015 results in January.

The company expects global leasing volumes to be down 5% for 2016 compared to first quarter’s forecast of a 5% increase for the year, however, at about 420 million square feet, “volumes are still expected to be at the second-highest level since 2008,” Ulbrich said.

“We remain optimistic about our own outlook in this environment,” Ulbrich added.

CBRE: U.S. Revenues a Bright Spot

CBRE’s revenues in the Americas gained 6% in the second quarter, supported by an 8% increase in leasing. However, investment sales grew by just 1%, compared with 7% a year ago.

Revenues decelerated across all other global regions during the quarter, led by a 40% decline in sales volumes in the UK. That said, CBRE expects mid- to high single-digit leasing and capital markets growth for the year.

Colliers Reports Double-Digit Leasing, Sales Growth

Leasing revenue for Colliers International grew 11% in the second quarter compared with last year, and increased 32% in investment sales, the strongest performance for the company in the last six quarters.

Year-over-year revenues in the Americas grew 13%, driven by robust and accelerating internal growth of 14%. Global leasing revenue totaled $152 million, up 13% over second-quarter 2015.

Revenues in the Americas totaled $263 million, up 30%, while brokerage revenue gains were strong in both U.S. and Canada, while leasing revenues in the two countries increased 22% versus last year and sales were up 54%.

“We’re seeing more interest in secondary markets,” said Colliers CFO John Friedrichsen. “The primary markets have been to some extent picked over and the yields on that level of transaction in the major markets are very, very low. We are seeing activity in great markets like St. Louis and even Michigan,” Friedrichsen added.

Marcus & Millichap Sees Stronger Larger-Transaction Business

Marcus & Millichap reported 25% growth in its Institutional Property Advisors (IPA) segment, comprised of larger transaction sales of more than $20 million in the second quarter. However, overall revenues increased at 6%, a deceleration from the 12% reported in the first quarter, which included a $500 million trade.

M&M logged 8% growth in the number of transactions in its private client segment, Total investment sales volumes of $8.5 billion represented 16% growth, and marked the second-highest quarter on record for the company, following fourth-quarter 2015.

“This healthy picture of real estate fundamentals supports our view that the market can remain active in the aftermath of a 5-year run leading to record sales in 2015,” said Nadji.