JLL’s Q3 2025 results reveal a global commercial real estate market in transition: revenue grew 4% year-over-year to $5.1 billion, yet net income slid 40% as U.S. leasing softened. The firm’s performance underscores a widening gap between U.S. and non-U.S. markets, with EMEA and APAC advisory and capital markets revenue counterbalancing weaker leasing volume stateside. For capital allocators and CRE underwriters, the data signals a two-speed cycle—one where capital is recalibrated by region and service line, and cost discipline is paramount.

JLL’s double-digit decline in U.S. leasing revenue highlights ongoing demand softness. According to company filings, U.S. office and retail leasing faced muted tenant activity, with transactional volumes lagging both historical and peer benchmarks. Cost controls did not fully offset the impact; net income fell to $39.6 million from $66.2 million last year. “We’re seeing clients pause leasing decisions amid economic uncertainty,” said a JLL executive. This caution constrains short-term fee income and narrows transaction pipelines.

By contrast, EMEA and APAC operations provided ballast for JLL’s global performance. Advisory revenue in these regions remained stable or grew modestly, reflecting steady institutional demand for valuation, consultancy, and cross-border capital deployment. Notably, global capital markets revenue rose 7% YoY, driven by higher cross-border deal volume in Europe and Asia. This resilience demonstrates that capital is flowing to regions less hampered by leasing overhangs, underscoring the value of a diversified global platform.

A notable trend in JLL’s results is the shift in transaction composition. With U.S. leasing activity subdued, capital markets and advisory service lines are gaining share of total revenue. This dynamic favors service providers with versatile capabilities, and signals to credit markets that advisory fee streams may offer relative stability amid transactional volatility. The 7% YoY gain in capital markets revenue globally highlights ongoing appetite for non-leasing CRE solutions, particularly in EMEA and APAC.

Cost containment remains a strategic focus as revenue mix shifts. JLL referenced “disciplined cost management” as a partial offset to weaker transactional income, echoing a broader industry trend. While lower operating costs helped cushion the impact of declining U.S. leasing, margin pressure persists—especially when revenue growth is concentrated in less cyclical, lower-margin advisory lines. The firm’s Q3 margin contraction illustrates how cost discipline, while necessary, cannot fully neutralize top-line softness.

Should U.S. leasing volumes remain subdued, capital will likely continue to flow toward advisory, valuation, and capital markets services—especially in EMEA and APAC. If cross-border investment sustains, firms with global reach and diversified service lines could weather regional downturns more effectively. However, persistent margin compression may drive further headcount and expense rationalization. Capital allocation strategies will hinge on tracking transaction mix and regional performance.

Discipline in cost and capital isn’t just reaction—it’s the price of resilience across cycles.