Newmark’s Capital Markets Division Poised for Further Grown in 2025

Newmark (NMRK) bolstered its already robust capital markets business in 2024 and is poised for continued growth as interest rates stabilize in 2025, the company said in its quarterly earnings call Friday morning.

 The brokerage firm increased its year-over-year fourth-quarter capital markets transaction volume by 20 percent, which helped drive revenues up 18.8 percent during the final three months of 2024. When excluding 2023 fourth-quarter transactions — which included selling a $39.5 billion Signature Bank loan portfolio — Newmark boosted volumes by 209 percent for mortgage brokers and debt placements, according to the earnings results. 

Barry Gosin, CEO of Newmark, noted on the earnings call that Newmark increased its U.S. debt market share by roughly 300 basis points to 9 percent for 2024, which compares to just 1.5 percent it had in 2015 when the firm began its capital markets platform. Gosin said Newmark is positioned for continued capital markets growth this year with an expected stabilization of interest rates, narrower bid-ask spreads and the fact that there is $2.1 trillion in near-term U.S. debt maturities coming down the pike.

“The company is positioned for success in an industry that is poised for growth over the next several years,” Gosin said. “Newmark continues to elevate its brand and is the go-to adviser for complex transactions that require innovative solutions.

Newmark also reported a 15.5 percent revenue increase in its leasing business, which the brokerage attributed to double-digit gains in office transactions. 

Investment sales volume jumped 71 percent in the fourth quarter from the year-ago period, with investment sales fees rising 13.8 percent. 

The industrial sector was a particular high point for Newmark in the fourth quarter with $9.2 billion of volume for the sector across its capital markets and leasing businesses. Gosin said a huge driver of industrial growth was its heavy focus on data centers, executing nearly $17 billion of deals in the data center sector last year with demand expected to scale even higher this year under the Trump administration.

“The new administration investing heavily in infrastructure and the advent of artificial intelligence makes the future look incredibly bright for that particular industry,” Gosin said. “We saw the crease early, we acted early, and as a result we’re doing a significant amount of business in that space.” 

Friday’s earnings call was the first for Newmark since its executive chairman, Howard W. Lutnick, was nominated by President Trump to become U.S. secretary of commerce. The U.S. Senate’s Commerce, Science and Transportation Committee advanced his nomination on Thursday, and Lutnick is expected to gain approval from the full senate in the coming days.

“Howard has helped Newmark make bold and decisive decisions that have catapulted our company’s growth in the United States and our expansion abroad,” Gosin said. “We are thankful for his partnership and the invaluable contributions he has made to the organization and are thrilled his expertise will serve and support the American people.”

Andrew Coen can be reached at acoen@commercialobserver.com.