2016 was a great year for commercial real estate. We took a look at the results for several companies in the space and found 4 organizations that really made 2016 their year.
Simon Property Group: The largest mall owner in the world had yet another formidable performance in 2016. Simon Property Group’s full-year results showed financial growth and strong property fundamentals. Funds from operations (FFO) hit just under $3.8 billion, a boost from 2015, when it was close to $3.6 billion, posting a nine-percent increase. Meanwhile, net income increased as well. Simon has six projects around the world set to open this year, and it ended the year opening both an outlet center in Maryland, and an urban retail mall in downtown Miami.
Prologis: Last year was also kind to industrial commercial real estate leader Prologis. Its 2016 results were strong as well, with FFO increasing from $2.23 to $2.57 per share year over year. Net earnings were also impressive, hitting about $1.2 billion, an increase from $863 million in 2015. Prologis also forecasts growth for the remainder of this year. The company has millions of square feet under development across countries, including the United States, as well as cities in Asia and Europe. The company boasted a strong record of selling non-core assets in 2016.
CBRE: CBRE, arguably the largest commercial real estate services firm, has not yet reported its full-year results. But based on what has been reported, including its third quarter and recent stock performance, it seems as though 2016 was a favorable year. CBRE’s third-quarter performance was impressive, with revenues increasing 18 percent from the same prior-year period, even though net income dipped. But CBRE’s stock price is hovering around a one-year high, at around $31.50 per share. Additionally, CBRE acquired Floored, a commercial real estate technology company that specializes in 3D digital imaging, in January.
Integra Realty Resources: Integra Realty Resources (IRR), one of the leading commercial real estate appraisers, does not release its financial information. However, information the company has released makes the appraisal sector sound like it is on solid ground. Just earlier this year, IRR Chairman, Anthony Graziano, said that there is a growing appetite for investors to purchase national commercial real estate appraisal firms after a few of its affiliates were snapped up. He also said, when forecasting the future of CRE for 2017, that despite the economy’s overall uncertainty, IRR has heavily invested in technological advances and is increasing its coverage of markets across the United States.
Though there is a lot of uncertainty about what 2017 will bring on several levels, these four companies seem to be prepared for this year. Want to be a top performer in 2017? Sign up for early access to Reonomy’s national product to source opportunities and efficiently gather property data.