Newmark Revenue Jumps 27% as Artificial Intelligence Fuels Record Office Leasing Volume

Commercial brokerage Newmark reports $846.5M in Q1 revenue, fueled by record leasing fees and a 45% jump in capital markets activity across NYC, Texas, and SF.

By: AXL Media

Published: May 1, 2026, 9:03 AM EDT

Source: Bisnow

Record Leasing Fees Driven by Tech and AI

Newmark’s leasing division emerged as a primary growth engine in early 2026, with fees rising 20.2 percent to hit a record first-quarter benchmark. The firm highlighted "markedly higher office volumes," specifically noting that several high-profile artificial intelligence companies have anchored recent major transactions. This trend is not isolated to Newmark; other major office players have similarly reported that AI-driven demand is beginning to offset broader vacancy concerns in the post-pandemic era.

Geographically, the activity was concentrated in key innovation hubs. New York City, the San Francisco Bay Area, and major Texas markets were identified as the strongest performers. This geographic distribution suggests that tech firms are doubling down on premier urban centers where elite engineering talent is concentrated, even as other sectors continue to rationalize their physical footprints.

Capital Markets and Senior Housing Momentum

The brokerage's capital markets division showed even more dramatic growth, with revenue jumping 45.5 percent from the fourth quarter of 2025. This marks the tenth consecutive quarter of double-digit growth for the segment, a streak that defies ongoing macroeconomic uncertainty. Transaction volumes within capital markets expanded by a staggering 67.6 percent, largely driven by a surge in client activity within the senior housing sector.

Newmark also saw significant gains in its management and servicing arms, which grew by 21.2 percent. The firm’s valuation and advisory group led this charge, benefiting from a market that increasingly requires sophisticated advice on navigating technological shifts and debt refinancing. While net income for the quarter stood at $19.6 million a 324 percent increase year-over-year it did represent a dip from the $92.9 million recorded in the final months of 2025, reflecting typical seasonal adjustments and the timing of major deal closures.