Newmark Group Explained

Newmark Group Inc.
Type:Public
Traded As:NASDAQ: (Class A)
Russell 2000 Index component
Isin:US65158N1028
Location:125 Park Avenue
New York City, U.S.
Num Locations:170 (2022)
Key People:Jeffrey Gural, Chairman Emeritus
Howard Lutnick (chairman)
Barry M. Gosin (CEO)
James D. Kuhn (president)
Industry:Real estate
Services:Capital Markets
Global Corporate Services
Industrial and Logistics Services
Landlord Representation
Property Management
Retail Services
Tenant Representation
Valuation & Advisory
Revenue: $2.9 billion (2021)
Num Employees:6,500+ (2022)

Newmark Group Inc. is a commercial real estate advisory and services firm headquartered in New York City. It operates as Newmark, and is listed on the NASDAQ Global Select Market under the symbol "NMRK".[1]

The company’s services include Capital Markets, Global Corporate Services, Industrial and Logistics Services, Landlord Representation, Property Management, Retail Services, Tenant Representation and Valuation & Advisory.[2] According to Real Capital Analytics, Newmark was the third-largest investment broker in the Americas in 2020 measured by sell-side investment sales activity.[3] In its ‘Top 15 Most Powerful Brokerage Firms of 2021, Commercial Property Executive ranked Newmark 3rd.[4]

History

Early years

Newmark was founded in 1929[5] [6] in Manhattan by Dave Newmark.[7] [8]

In 1953, Aaron Gural joined Newmark & Company as a real estate broker, later purchasing the company in 1956 with partners.[9] [10] Gural served as Chairman of Newmark & Company from 1957 to 1998.

Under Gural's leadership, Newmark began acquiring properties throughout Manhattan starting with 230 Fifth Avenue.[11] Other notable property acquisitions during this time included the Film Center Building at 630 Ninth Avenue and the historic DuMont building at 515 Madison Avenue.[12] Gural became known as one of the first real estate executives to see the potential for restoring West Side industrial sites and abandoned lofts in the Garment District.[13]

In 1978, Aaron Gural's son, Jeffrey Gural, and Barry Gosin took ownership of the company.[14]

Throughout the late 1980s, in response to a lull in New York City's real estate market, Gosin began building Newmark’s brokerage and advisory division.[15] Gosin would later tell The New York Times that it was Newmark's unique combination of being a brokerage firm and having a significant investment portfolio that set the firm apart in the industry.

In 1992, James Kuhn joined Newmark as President after serving as the owner/manager of the Mendik Company, where he oversaw the acquisition of 11 million square feet of office space and 6,000 apartments.[16]

Throughout the 1990s, Newmark continued to expand its property holdings, including through the purchase of New York's Flatiron Building beginning in 1997.[17] In the late 1990s, the firm grew beyond its basic leasing and management operation by expanding its corporate services division.[18]

2001 to present

In 2001, Newmark invested in national appraiser Koeppel Tener Real Estate Services, founded by Alfred J. Koeppel.[19] In 2006, Newmark formed a partnership with London-based real estate firm Knight Frank becoming Newmark Knight Frank.

In October 2011, BGC Partners, Inc., an American global financial services company based in New York City, acquired Newmark.[20] With the acquisition, Howard W. Lutnick, Chairman and Chief Executive Officer of BGC, became Chairman of Newmark, with Gosin, who had previously served on BGC's Board of Directors, remaining as Newmark's CEO and Jeff Gural as Chairman Emeritus.

In April 2012, BGC Partners acquired assets of commercial real estate brokerage Grubb & Ellis, founded in 1958 by Donald Sr. & John Grubb & Harold Ellis, to form Newmark Grubb Knight Frank (NGKF).[21] [22]

Newmark announced an expansion in South America in 2014 through partnerships in Argentina, Brazil, Colombia, Chile and Peru.[23] According to Newmark, the firm currently operates in Argentina, Brazil, Colombia, Costa Rica, Mexico, Panama, and Puerto Rico.[24]

On December 15, 2017, Newmark listed on the Nasdaq stock exchange.[25]

In October 2020, Newmark Knight Frank formally rebranded to Newmark.[26]

On June 2, 2021, The Washington Post reported that The Trump Organization had hired Newmark to sell its lease to the Trump International Hotel in Washington, DC. "A representative of Newmark Group declined to comment", the Post said.

Acquisitions History

Over the past decade, Newmark and its parent company BGC Partners, Inc. have expanded real estate services and geographic reach through the acquisition of companies in the United States and internationally. Newmark has acquired more than 55 companies since 2011.[27]

2012

2014

2015

2016

2017

2018

2021

2022

2023

Awards and recognition

In 2021, Commercial Property Executive named Newmark third in its annual Top Commercial Real Estate Brokerage Firms ranking, following CBRE and Cushman & Wakefield.[60] The same ranking named Newmark second in Top 10 Firms in Sales and fifth in Top 10 Firms in Leasing.

Real Capital Analytics named Newmark the 3rd largest investment broker in the Americas in 2020 based on sell-side investment sales activity.[61]

Controversies

In 2022, Newmark commercial real estate agents were sued by a client after they drastically mispriced an asset in a deal they brokered. The property, once owned by OCA - Asian Pacific American Advocates, a Washington, D.C.-based non-profit, was sold for $4.4 million. Four months later, the buyer resold the asset for a 30% increase. The non-profit claimed that it did not receive the full price for its property because of errors made by Newmark's agents.[62]

In 2018, the company was sued by an administrative assistant over sexual harassment claims. While working in the firm, she alleged suffering repeated sexual advances, which she rebuffed. She further claimed that when she raised the issue to human resources, she was terminated. In a statement, a Newmark spokesperson said "we have thoroughly investigated allegations made by a former employee and have determined them to be baseless."[63]

In 2017, a Newmark executive, Mike Arnold, was sued for sexual harassment. Arnold's lawyers sought disclosure of the victim's real name and dismissal of the case on procedural grounds. The victim claimed she was ogled and stalked, among other sexual harassment.[64]

See also

Notes and References

  1. Web site: Bockmann . Rich . 2017-11-01 . A wide open lane for commercial brokerage IPOs . 2022-02-09 . The Real Deal.
  2. Web site: Services . 2022-02-11 . Newmark website.
  3. Web site: 2021-03-16 . RCA Names Top Global Commercial Property Brokers for 2020 . 2022-02-11 . Real Capital Analytics, Inc. . en-US.
  4. Web site: 2021-06-03 . 2021 Top Commercial Real Estate Brokerage Firms . 2022-02-09 . Commercial Property Executive . en-US.
  5. Web site: 2019-03-19 . Newmark TRD Research . February 4, 2022 . TRD Research Published by The Real Deal.
  6. Web site: Newmark . 2022-03-07 . Commercial Observer . en-US.
  7. Web site: REW . 2020-10-19 . Newmark drops the Knight Frank . 2022-03-07 . Real Estate Weekly . en-US.
  8. News: Gregor . Alison . 2006-04-23 . Trained in Manhattan, Graduating to the World . en-US . The New York Times . 2022-03-07 . 0362-4331.
  9. News: Hevesi . Dennis . 2009-03-14 . Aaron Gural, Real Estate Executive, Dies at 91 . en-US . The New York Times . 2022-03-07 . 0362-4331.
  10. Web site: REW . 2020-10-19 . Newmark drops the Knight Frank . 2022-03-07 . Real Estate Weekly . en-US.
  11. Web site: Newmark . February 3, 2022 . Commercial Observer.
  12. Web site: Athavaley . Anjali . June 23, 2013 . Gural Scion on Fast Track . February 3, 2022 . The Wall Street Journal.
  13. News: Hevesi . Dennis . 2009-03-14 . Aaron Gural, Real Estate Executive, Dies at 91 . en-US . The New York Times . 2022-03-07 . 0362-4331.
  14. News: Gregor . Alison . 2006-04-23 . Trained in Manhattan, Graduating to the World . en-US . The New York Times . 2022-03-07 . 0362-4331.
  15. Web site: Gregor . Alison . April 23, 2006 . Trained in Manhattan, Graduating to the World . March 7, 2022 . The New York Times.
  16. Web site: James Kuhn Newmark Newmark Grubb Knight Frank . 2022-03-07 . The Real Deal New York . en-US.
  17. Web site: Garbarine . Rachel . June 30, 2004 . COMMERCIAL REAL ESTATE: REGIONAL MARKET -- Manhattan; Publisher Expands to Take Most of the Flatiron Building . March 3, 2022 . The New York Times.
  18. Web site: Pincus . Adam . November 1, 2010 . Newmark's Class A play . March 3, 2022 . The New York Times . The Real Deal.
  19. https://nypost.com/2001/07/03/newmark-eyes-buy-realtor-plans-to-put-in-national-appraiser/ New York Post: "NEWMARK EYES BUY; REALTOR PLANS TO PUT $$ IN NATIONAL APPRAISER" By Lois Weiss
  20. Web site: Rusli . Evelyn M. . April 28, 2011 . BGC Partners Buys Newmark . February 27, 2022 . The New York Times . DealBook.
  21. http://ir.bgcpartners.com/news-releases/news-releases/News-Release-Details/2012/BGC-Forms-Newmark-Grubb-Knight-Frank-Upon-Completing-the-Acquisition-of-Assets-of-Grubb--Ellis-Company/default.aspx BGC Forms Newmark Grubb Knight Frank Upon Completing Acquisition of Assets of Grubb & Ellis Company
  22. Web site: Vincent . Roger . February 22, 2012 . Grubb & Ellis agrees to sale . February 23, 2022 . Los Angeles Times.
  23. Web site: Melouney . Carmel . June 2, 2014 . Newmark Grubb Frank Knight Teams Up With Firms in South America . February 24, 2022 . The Wall Street Journal.
  24. Web site: Latin America . March 3, 2022 . Newmark website.
  25. Web site: Bockman . Rich . December 15, 2017 . Newmark Lists on the Nasdaq . February 27, 2022 . The Real Deal.
  26. Web site: October 19, 2020 . Newmark Drops the Knight Frank . February 14, 2022 . Real Estate Weekly.
  27. Web site: Newmark - Newmark Group, Inc. Reports Second Quarter 2022 Financial Results . 2022-08-08 . ir.nmrk.com.
  28. Web site: Vincent . Roger . 2012-02-22 . Grubb & Ellis agrees to sale . 2022-02-23 . Los Angeles Times.
  29. Web site: Huspeni . Dennis . 2013-01-02 . BGC buys out Frederick Ross Co. . 2022-02-18 . Denver Business Journal.
  30. Web site: 2013-03-25 . Newmark Grubb Knight Frank Parent, BGC Partners, Inc., acquires Smith Mack and Frederick Ross Company . 2022-02-18 . NYRej.
  31. Web site: Donato-Weinstein . Nathan . 2014-08-14 . It's final: Cornish & Carey is now part of Newmark Grubb Knight Frank . 2022-03-12 . Silicon Valley Business Journal.
  32. News: Slatin . Peter . 2014-01-27 . Newmark CEO Bullish in Davos . en-US . The Wall Street Journal . 2022-03-30 . 0099-9660.
  33. News: Grant . Peter . 2014-12-08 . Newmark Grubb Knight Frank Gets Sales Boost . en-US . The Wall Street Journal . 2022-03-30 . 0099-9660.
  34. Web site: 2015-05-05 . BGC Partners acquires real estate consulting firm CFI . 2022-03-14 . Reuters.
  35. Web site: Baltic . Scott . 2015-05-19 . NGKF’s Newest Acquisition . 2022-03-18 . Commercial Search.
  36. Web site: Demeropolis . Tom . 2015-12-24 . One of the world’s largest commercial real estate firms enters Cincinnati . 2022-03-18 . Cincinnati Business Courier.
  37. Web site: Nichols . Meagan . 2016-01-08 . Newmark Grubb Memphis acquired by global firm . 2022-02-18 . Memphis Business Journal.
  38. Web site: Truong . Kevin . 2016-06-20 . Newmark Grubb Knight Frank acquires CRE Group Inc. . 2022-02-18 . San Francisco Business Times.
  39. Web site: Nichols . Meagan . 2016-03-17 . Newmark Grubb Knight Frank buys Memphis company . 2022-02-18 . Memphis Business Journal.
  40. Web site: Gilliam . Derek . 2017-01-03 . Jacksonville multifamily firm acquired by Newmark Grubb Knight Frank . 2022-02-18 . Jacksonville Business Journal.
  41. Web site: Brown . Lisa . 2017-02-16 . Capital Advisory Business Bolsters Capital Markets Platform . 2022-02-18 . GlobeSt.
  42. News: 2017-07-18 . BGC Partners to buy Berkeley Point Financial for $875 million . Reuters . 2022-03-30.
  43. Web site: Bubny . Paul . 2017-08-03 . Berkeley Point Deal Has Built-In Synergies with NKF . 2022-03-12 . GlobeSt.
  44. Web site: Morphy . Erika . 2018-06-29 . Newmark Is Buying Corporate Tenant Advisory Firm Jackson Cooksey . 2022-03-12 . GlobeSt.
  45. Web site: Kezar . Korri . 2019-06-29 . Dallas commercial brokerage acquired by New York real estate advisory firm . 2022-03-12 . Dallas Business Journal.
  46. Web site: Gross . Max . 2018-05-29 . Newmark Acquiring RKF for Undisclosed Price . 2022-02-18 . Commercial Observer . en-US.
  47. Web site: 2021-03-19 . Newmark Acquisition of Knotel Is Approved . 2022-03-30 . The Real Deal National . en-US.
  48. Web site: Dyton . Joe . 2021-03-25 . Court approves Newmark’s acquisition of Knotel . 2022-02-28 . Connected Real Estate Magazine . en-US.
  49. Web site: Shaikh . Niloofer . Newmark acquires majority stake of the start-up Space Management, Deskeo Seeking Alpha . 2022-03-18 . seekingalpha.com.
  50. Web site: McClary . Samantha . 2019-12-20 . Harper Dennis Hobbs bought by US giant . 2022-03-22 . EG Radius.
  51. Web site: Brown . Mariah . 2019-12-20 . Newmark Group Acquires Retail Firm Harper Dennis Hobbs . 2022-03-22 . GlobeSt.
  52. Web site: MiT acquired by Newmark Knight Frank News The Title Report . 2022-03-30 . www.thetitlereport.com . en-US.
  53. Web site: New York’s Newmark Acquires Top London CRE Boutique BH2 . 2022-06-17 . Connect CRE . en-US.
  54. Web site: Newmark acquires London real estate advisory firm Seeking Alpha . 2022-06-17 . seekingalpha.com . en.
  55. Web site: May 03 . Ingrid Tunberg . PM . 2022 at 04:54 . Newmark Acquires Retail Advisory Business, Open Realty . 2022-06-17 . GlobeSt . en.
  56. Web site: Newmark acquires North American retail advisory business, Open Realty (NASDAQ:NMRK) Seeking Alpha . 2022-06-17 . seekingalpha.com . en.
  57. Web site: Newmark Acquires Boston Brokerage Firm McCall & Almy . 2022-06-17 . Bisnow . en.
  58. Web site: 2022-04-11 . Newmark Acquires McCall & Almy . 2022-06-17 . Commercial Property Executive . en-US.
  59. News: Strohm . Paul . Gerald Eve joins BH2 and HDH in US firm Newmark’s stable . Real Asset Insight . 2023-03-13 . 2023-03-25 .
  60. Web site: 2021-06-03 . 2021 Top Commercial Real Estate Brokerage Firms . 2022-04-07 . Commercial Property Executive . en-US.
  61. Web site: 2021-03-16 . RCA Names Top Global Commercial Property Brokers for 2020 . 2022-04-07 . Real Capital Analytics, Inc. . en-US.
  62. News: Banister . Jon . March 9, 2022 . Asian American Organization Sues Newmark For $5.3M Over D.C. Property Sale. Bisnow . March 9, 2022.
  63. News: Brenzel . Kathryn . July 13, 2018 . NKF broker accused of sexual harassment by fired administrative assistant. The Real Deal . March 9, 2022.
  64. News: Clarke . Katherine. July 13, 2018. Former Newmark Knight Frank exec Mike Arnold wants his sexual harassment accuser unmasked. The Real Deal . March 9, 2022.

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