Newmark Group

Last updated
Newmark Group Inc.
Company type Public
Nasdaq:  NMRK (Class A)
Russell 2000 Index component
ISIN US65158N1028
Industry Real estate
Founded1929;95 years ago (1929)
Headquarters 125 Park Avenue
New York City, U.S.
Number of locations
170 (2022)
Key people
 Jeffrey Gural, Chairman Emeritus
Howard Lutnick (chairman)
Barry M. Gosin (CEO)
James D. Kuhn (president)
ServicesCapital Markets
Global Corporate Services
Industrial and Logistics Services
Landlord Representation
Property Management
Retail Services
Tenant Representation
Valuation & Advisory
RevenueIncrease2.svg $2.9 billion (2021)
Number of employees
6,500+ (2022)
Website nmrk.com

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]

Contents

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

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References

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  2. ↑ "Services". Newmark website. Retrieved 2022-02-11.
  3. ↑ "RCA Names Top Global Commercial Property Brokers for 2020". Real Capital Analytics, Inc. 2021-03-16. Retrieved 2022-02-11.
  4. ↑ "2021 Top Commercial Real Estate Brokerage Firms". Commercial Property Executive. 2021-06-03. Retrieved 2022-02-09.
  5. ↑ "Newmark | TRD Research". TRD Research | Published by The Real Deal. 2019-03-19. Retrieved February 4, 2022.
  6. ↑ "Newmark". Commercial Observer. Retrieved 2022-03-07.
  7. ↑ REW (2020-10-19). "Newmark drops the Knight Frank". Real Estate Weekly. Retrieved 2022-03-07.
  8. ↑ Gregor, Alison (2006-04-23). "Trained in Manhattan, Graduating to the World". The New York Times. ISSN   0362-4331 . Retrieved 2022-03-07.
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  14. ↑ Gregor, Alison (2006-04-23). "Trained in Manhattan, Graduating to the World". The New York Times. ISSN   0362-4331 . Retrieved 2022-03-07.
  15. ↑ Gregor, Alison (April 23, 2006). "Trained in Manhattan, Graduating to the World". The New York Times. Retrieved March 7, 2022.
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  39. ↑ Nichols, Meagan (2016-03-17). "Newmark Grubb Knight Frank buys Memphis company". Memphis Business Journal. Retrieved 2022-02-18.
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  41. ↑ Brown, Lisa (2017-02-16). "Capital Advisory Business Bolsters Capital Markets Platform". GlobeSt. Retrieved 2022-02-18.
  42. ↑ "BGC Partners to buy Berkeley Point Financial for $875 million". Reuters. 2017-07-18. Retrieved 2022-03-30.
  43. ↑ Bubny, Paul (2017-08-03). "Berkeley Point Deal Has Built-In Synergies with NKF". GlobeSt. Retrieved 2022-03-12.
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  55. ↑ May 03, Ingrid Tunberg |; PM, 2022 at 04:54. "Newmark Acquires Retail Advisory Business, Open Realty". GlobeSt. Retrieved 2022-06-17.{{cite web}}: CS1 maint: numeric names: authors list (link)
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