{"id":1004180652,"date":"2017-06-15T05:14:44","date_gmt":"2017-06-15T13:14:44","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004180652"},"modified":"2022-12-09T01:20:47","modified_gmt":"2022-12-09T09:20:47","slug":"newmark-knight-frank-drops-grubb-prepares-for-ipo","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/newmark-knight-frank-drops-grubb-prepares-for-ipo\/","title":{"rendered":"Newmark Unveils New Name, Eyes IPO"},"content":{"rendered":"

By Gail Kalinoski<\/em><\/p>\n

\"Jahn<\/a>

Jahn Brodwin, FTI Real Estate Solutions<\/p><\/div>\n

Five years after acquiring the bankrupt Grubb & Ellis<\/a> brokerage and adding part of its name to its own moniker to create Newmark Grubb Knight Frank, the commercial real estate advisory firm has quietly dropped Grubb and is moving forward as Newmark Knight Frank again, as its parent company, BGC Partners Inc., plans for a possible spin-off and IPO in the fall.<\/p>\n

While there had been rumors that the name change was coming with New York Post<\/em> real estate columnist Lois Weiss reporting in February 2016 that it was being considered, there was no big announcement or even a news release when it actually happened. As of June 1, Grubb was dropped from the web site and press releases issued starting on that date began using Newmark Knight Frank or NKF. A spokesman said the firm wasn\u2019t offering any comments on the name change or the timing, just noting that \u201cit is simply under way.\u201d<\/em><\/p>\n

Rob Frankel, a Los Angeles-based branding expert, said the firm might be trying to appeal to a younger client base but said it was unusual because \u201ctrust is very important\u201d<\/em> in real estate firms and he was surprised they appeared to be turning away from part of the firm\u2019s legacy instead of capitalizing on it. Both the Newmark and Grubb & Ellis firm names were decades-old.<\/p>\n

BGC Prepares for Real Estate Services Spin-Off<\/h2>\n

Both Frankel and Jahn Brodwin, senior managing director in the FTI Real Estate Solutions practice in New York City, said the decision to remove Grubb from the firm name was probably not connected to BGC\u2019s plans to spin off Newmark from the parent company in an initial public offering as soon as this fall. In February, BGC, a financial brokerage firm that itself was spun off from Cantor Fitzgerald LP in 2004, announced that it had confidentially filed a draft registration form with the U.S. Securities and Exchange Commission to begin planning for an IPO for Newmark and to spin off the real estate services business into its own subsidiary.<\/p>\n

BGC officials did not say much about the IPO plans until May 4, when BGC CEO Howard Lutnick referred to the Newmark\u2019s 20 percent revenue growth in the first quarter of 2017 during the Q1 earnings call with analysts and said the firm was working on details of an IPO.<\/p>\n

\u201cWe think we have a good understanding of what the market would like to see and how they would like to see it and we want to present Newmark in that light and in the right circumstances and with the right strength,\u201d<\/em> he said, according to a Seeking Alpha transcript. \u201cNewmark is clearly in an excellent place demonstrably growing better than the industry metrics and I think we are thinking about it.\u201d<\/em><\/p>\n

In addition to the 20 percent revenue growth, Newmark\u2019s Q1 capital markets revenues increased by 27 percent from Q1 2016 and leasing and other services improved by 21 percent.<\/p>\n

Perhaps those first-quarter numbers spurred BGC\u2019s decision to move forward because Lutnick said at the June 7 Sandler O\u2019Neill Global Exchange and Brokerage Conference in New York that the IPO would likely happen between late September and November, according to Reuters.<\/p>\n

Since the acquisition by BGC in 2011, Newmark, which had already been growing with numerous mergers, acquisitions and alliances, has become one of the world\u2019s leading CRE advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF\u2019s 14,100 professionals work in more than 400 offices on six continents. The firm\u2019s full-service platform includes leasing; capital markets services; commercial mortgage brokerage services as well as corporate advisory, consulting, project and development management, and property and corporate facilities management services.<\/p>\n

Despite the solid numbers and growth, Brodwin said, \u201cI heard their sense is the public markets are not valuing the company properly and the only way to do that would be to take the company (Newmark) out on its own.\u201d<\/em><\/p>\n

He said the company shareholders or partners who own a lot of equity in the company may also feel the time is right for a liquidity event.<\/p>\n

Newmark may not be the only commercial real estate services firm going public this year or early next year. Cushman & Wakefield has also been rumored to be considering an IPO, though Brodwin said they have not filed with the SEC yet.<\/p>\n

\u201cThere is a sense of momentum building and you want to catch that wind at the right time and get a strong valuation,\u201d<\/em> Brodwin told Commercial Property Executive.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Dropping \u201cGrubb\u201d from its corporate handle, the services firm has rebranded as Newmark Knight Frank. Its parent company, BGC Partners, is planning to spin off the real estate services unit in an IPO in the fall.<\/p>\n","protected":false},"author":1068,"featured_media":1004180658,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21808,23891,21742],"tags":[36191,34896,36007],"class_list":["post-1004180652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-national","category-latest","tag-bgc-partners","tag-cushman-wakefield","tag-newmark-knight-frank"],"acf":[],"yoast_head":"\nNewmark Unveils New Name, Eyes IPO - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/newmark-knight-frank-drops-grubb-prepares-for-ipo\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Newmark Unveils New Name, Eyes IPO\" \/>\n<meta property=\"og:description\" content=\"Dropping \u201cGrubb\u201d from its corporate handle, the services firm has rebranded as Newmark Knight Frank. 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