After a standout 2025, Jones Lang LaSalle (JLL) is heading into 2026 with momentum on its side. The global real estate services firm reported a 12% year-over-year revenue increase and a 67% profit surge, driven by double-digit gains in its office and industrial leasing businesses.
"Globally, both office and industrial leasing revenue growth accelerated, with office up 26% and industrial up 11% in the quarter," JLL Chief Financial Officer Kelly Howe said during the company's February 18 earnings call, according to a transcript provided by S&P Global Market Intelligence.
"The office revenue growth meaningfully outpaced the 1% increase in market volume according to JLL Research."
Global CEO Christian Ulbrich said investor appetite remains strong and the firm expects that "more investors are deploying capital and real estate debt markets remain robust," setting the stage for additional growth this year.
"Momentum is similarly building in our leasing business," he added, noting that office demand has reached its highest level since 2019 while industrial demand is improving and diversifying across industries.
Howe described U.S. office leasing as "very strong," particularly among large transactions.
"When we look at deals 100,000 square feet and over in the U.S., those are up 15% year-over-year," she said, pointing to solid performance in gateway markets such as New York and San Francisco.
"We're seeing continued flight to quality," Howe added.
"We're seeing continued office mandates, return-to-work mandates. I think the average now for the private sector is four days a week in the office. Rents are up 4% in the fourth quarter, according to our data, and lease durations are at 8 years, which have been continuously increasing since COVID. So again, as we go into 2026, we're seeing continued momentum, particularly in the office space. And also, I'd couple that with feeling good about our pipeline."
JLL was among the companies whose stocks were recently caught in the crosscurrents of investor concern over how artificial intelligence might disrupt commercial real estate brokerages. Addressing that topic, Ulbrich said that while some worry remains on how AI could reshape office work, top-tier spaces continue to see robust demand.
"If we were to see a significant decline in office work because of AI, what would happen is that you would see the worst buildings, back office spaces, and those types of buildings suffering first," he said.
"Any kind of reduction in Grade A buildings would be picked up relatively quickly by people who are currently sitting in a C or a B building, and then they move up the ladder."
Ulbrich added that markets such as San Francisco and New York are actually benefiting from AI-driven demand, noting, "For the time being, it's growing," he said.
On the industrial side, Howe said the market has turned a corner.
"We believe that the industrial leasing business has bottomed out and looks like it's building momentum again," she said. "As we look into 2026, we expect continued acceleration around that particular segment, and our pipelines look strong, look good for industrial leasing as we head into 2026.
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