The Zacks Real Estate Operations industry constituents are poised to benefit from the increased adoption of outsourced real estate services and emerging trends. Strategic investments in AI and data tools provide a competitive edge. Companies like CBRE Group, Inc. (CBRE Quick QuoteCBRE - Free Report) , Jones Lang LaSalle Incorporated (JLL Quick QuoteJLL - Free Report) and Newmark Group, Inc. (NMRK Quick QuoteNMRK - Free Report) are set to benefit from these positive trends.

Despite the positives, the industry faces challenges such as geopolitical instability, macroeconomic uncertainties and policy changes. On top of that, clients remain focused on cost management, while investors desire greater price discovery, which will cause a delay in the closing timeline for transactions.

About the Industry

The Zacks Real Estate Operations industry comprises companies that provide leasing, property management, investment management, valuation, development services, facility management, project management, transaction and consulting services, among others. However, real estate investment trusts, or REITs, are excluded from this group. Economic trends and government policies impact the real estate market (both global and regional), which determines the industry’s performance. Economic activity, employment growth, office-based employment, interest-rate levels, costs and availability of credit, tax and regulatory policies and the geopolitical environment are the major factors shaping the real estate market’s fate. Also, pandemic-induced public health challenges and geopolitical issues have affected property sales and the leasing lines of businesses.

What's Shaping the Real Estate Operations Industry's Future?

Demand Across Key Real Estate Categories Provides Support: The operations real estate industry in the United States, which provides facility management, leasing, and property operations, is thriving amid market recovery and sector-specific demand drivers. Industrial leasing is improving due to the reshoring of manufacturing and increased outsourcing to third-party logistics providers, while return-to-office trends are driving office leasing recovery. Data center demand remains robust from AI and cloud computing, with leasing expected at all-time highs in 2026. Strong demand in healthcare and life sciences adds stability through limited supply and onshoring investments. The hotel industry also shows resilience, where demand growth outpaces supply increase.

Outsourcing in the Real Estate Market to Gain Further Momentum: Corporations, public sector organizations, healthcare providers, and firms across finance, industrials, life sciences, and technology are increasingly opting to outsource their real estate needs. They are relying on third-party real estate experts to improve execution and efficiency. More companies are also seeking strategic advice on reshaping their workplaces and operations to strengthen culture, attract top talent, and improve overall performance. These trends are opening up opportunities for real estate operations participants. Leading players in the industry are capitalizing on this shift by winning new clients and expanding relationships with existing ones. In addition, companies in the industry are making significant investments in proptech, AI, and data tools to boost efficiency, enhance client service, and gain market share.

Global Tensions Disrupt Supply Chains and Growth: Geopolitical instability and macroeconomic uncertainties continue to hinder the industry's performance. Ongoing conflicts in Ukraine-Russia and the Middle East countries have disrupted construction material supply chains and driven persistent inflation through soaring energy costs from Strait of Hormuz disruptions. These pressures prompted aggressive U.S. policy responses, including expanded tariffs on key imports from China and Europe, alongside immigration restrictions that tightened construction labor markets. The 2025 trade wars exacerbated these issues, eroding business confidence and delaying projects nationwide. The U.S. companies reliant on global supply chains now grapple with heightened trade compliance, customs delays, and cross-border tariffs, stalling development timelines. Amid lingering economic uncertainty, clients remain cautious, while investors demand sharper price discovery, further delaying transaction closings.

Zacks Industry Rank Indicates Bright Prospects

The Zacks Real Estate Operations industry is housed within the broader Zacks Finance sector. It carries a Zacks Industry Rank #92, which places it in the top 38% of 245 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the upward earnings per share outlook for the constituent companies in aggregate. Looking at the aggregate earnings per share estimate revisions, it appears that of late, analysts are gaining confidence in this group’s growth potential. Since May 2025, the industry’s earnings per share estimates for 2026 have moved up 8%.

Before we present a few stocks that you may want to consider for your portfolio, let’s take a look at the industry’s recent stock-market performance and valuation picture.

Industry Underperforms Sector & S&P 500

The Zacks Real Estate Operations industry has underperformed the broader Zacks Finance sector and the S&P 500 composite over the past year.

The industry has advanced 10.2% during this period compared with the S&P 500’s return of 34.2% and the broader Finance sector’s growth of 14.2%.

One-Year Price Performance

 

Industry's Current Valuation

On the basis of the forward 12-month price-to-earnings, which is a commonly used multiple for valuing Real Estate Operations stocks, we see that the industry is currently trading at 13.32X compared with the S&P 500’s forward 12-month price-to-earnings (P/E) of 21.83X. The industry is trading below the Finance sector’s forward 12-month P/E of 15.69X. This is shown in the chart below.

Forward 12-Month Price-To-Earnings Ratio

Over the last five years, the industry has traded as high as 22.76X and as low as 9.87X, with a median of 15.13X.

3 Real Estate - Operation Stocks to Consider

Jones Lang LaSalle Incorporated: Headquartered in Chicago, Jones Lang offers comprehensive commercial real estate and investment management services globally. The company’s commitment to delivering superior client service, paired with strategic investment in cutting-edge technology and innovation, positions it for significant growth in market share and winning relationships. Its first-quarter 2026 results showed record revenue of $6.39 billion, rising 11%.

The company continues to maintain a robust balance sheet with sufficient liquidity to support agile operations and seize emerging opportunities. Looking ahead, JLL remains well-positioned to navigate macro uncertainties while continuing to scale its tech-enabled services and advance its global investment management objectives.

Jones Lang LaSalle has a Zacks Rank of #2 (Buy) at present. The Zacks Consensus Estimate for 2026 earnings per share (EPS) stands at $21.93. This indicates an increase of 16.65% year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Newmark Group, Inc.: Headquartered in New York City, Newmark is a leading commercial real estate advisory and service provider for institutional investors and global corporations. The company continues to capitalize on the fragmented commercial real estate market, achieving significant gains in management services, leasing, and capital markets. It reported record first-quarter 2026 total revenues of $846.5 million, marking its seventh consecutive quarter of double-digit top-line growth.

Newmark has raised its full-year 2026 outlook, projecting double-digit top-line and bottom-line growth for the third consecutive year. By investing in advanced technology, expanding its international footprint, and focusing on high-growth sectors such as data centers, Newmark remains positioned to capture emerging growth opportunities and deliver consistent performance for its shareholders.

Newmark Group currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its 2026 EPS is pegged at $1.91. This suggests an increase of 17.9% year over year.

CBRE Group: Headquartered in Dallas, TX, CBRE Group is a commercial real estate services and investment firm. The company provides services spanning advisory, building operations, project management, and real estate investments to office, retail, industrial, multi-family and other commercial real estate sectors across major global markets. In the first quarter of 2026, it delivered strong results, with the company highlighting 20% revenue growth and nearly 30% operating profit growth across its services segments.

Its outsourcing business remains a standout performer, bolstered by a robust pipeline that sets the stage for promising future opportunities. Management raised 2026 core EPS guidance to $7.60 to $7.80 per share, reflecting 21% growth at the mid-point.

CBRE Group currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for its 2026 EPS is pegged at $7.61, suggesting 19.3% growth year over year.