Great Strides and Great Challenges
Almost two years into my role as Chairman of the Board after having served as CEO of EXOR, our majority shareholder, it is pleasing to reflect on the progress made in the execution of our strategic plan, which was approved by the Board of Directors in December 2010.
Our strong performance in 2012 underscores the determination and commitment of our leadership teams, the wealth of talent within Cushman & Wakefield, and the positive changes and investments made over the past 18 months. Notably, our strong performance in 2012 also enabled us, for the first time in five years, to pay a dividend to our shareholders.
We remain focused on executing our plan, which is critical to growing our business and delivering high-quality, value-added services to our clients.
The world we are operating in is changing rapidly, presenting unique challenges and great opportunities for a firm like Cushman & Wakefield. Against a backdrop of macroeconomic instability across many parts of the globe, companies are searching for ways to streamline their operations at a time when workforce demographics are also profoundly influencing how organizations are managing and investing for the future. Technological advancements are transforming how companies connect with their employees and customers in ways that were unimaginable a decade ago. As well, International capital flows, wealth transfer and technology will drive a dramatic new phase in globalization.
Cushman & Wakefield is a truly global brand with the great talent and unparalleled real estate and sector knowledge needed to help our clients navigate such change. Although we have made great progress in integrating our business across the globe, we must ensure that we work efficiently and creatively across service lines and regions. This will ultimately differentiate us from other service providers and ensure that we deliver the very best in class services that our clients deserve.
Looking ahead, I am enthusiastic about Cushman & Wakefield’s long-term prospects and am confident we are well positioned for continued success.
JOHN C. CUSHMAN III
96 Years of Unwavering Client Focus
In the course of a year, I see a good deal of the world, traveling regularly to markets in all three regions – the Americas, Asia Pacific and EMEA – where Cushman & Wakefield does business. This gives me a unique perspective on market trends and economies, and also on our people – and the motivations that drive them.
By far, the most consistent message I hear – in every corner of the globe – is that Cushman & Wakefield is a firm built for our clients – and that we have a reputation for getting things done. For 96 years, our core values have remained steadfastly focused on:
- Integrity and respect;
- Collaboration and trust;
- Confidence and mentorship.
The name Cushman & Wakefield – unlike any other in the industry – has endured the test of time for two reasons: we have put our clients' needs first and we always put the right people and platforms in place to provide the services our clients need.
For these reasons – and despite global economic uncertainty – in 2012, Cushman & Wakefield posted the second highest gross revenue in its history at $2.05 billion.
This impressive performance was largely driven by sustained growth in our global Corporate Occupier & Investor and Valuation & Advisory business lines, and led by the Americas region. It's a testament to our global reach that in Brazil, alone, we now have 155 million square feet under management and 2,500 employees servicing our clients.
Through 2012 and early 2013, our tradition for providing client-centric service resulted in the completion of some of the largest real estate assignments in the world including: the largest industrial lease in the UK in the last two years (one million square feet for Sainsbury); the largest H&M store in the world (589 Fifth Avenue, NYC); the largest office lease in San Francisco in a decade (Salesforce.com), and two of the largest sales in Hong Kong (Monterey Court in Jardine Lookout and Kowloon Commercial Center).
Our Capital Markets group executed many high-profile assignments including: the $230-million senior mortgage loan for 100 Church Street in Manhattan; the 99-year, triple-net lease to RXR Realty at 75 Rockefeller Plaza in NYC; the $610-million sale of 100 Federal Street Tower in Boston on behalf of Bank of America and the €302 million sale of a Junction LP's UK retail portfolio.
CIS increased revenue 6.1% globally and 16.7% in the U.S. while adding nearly 100 million square feet to its managed portfolio, which now stands at 902 million square feet. CIS gained major assignments globally and regionally on behalf of some of the world's largest corporations and institutions, including The Crown Estate in the U.K.
Valuation & Advisory, as well, had some stellar wins in 2012, with marked growth particularly in the Americas. V&A's retail sector business in the US increased by 17% and, recently, its government practice was named global vendor for a Department of State contract spanning over 130 countries. As well, in V&A's relentless drive to provide highly specialized, best-in-class client solutions across borders and services, it established a Global Accounts team consisting of 57 professionals in more than a dozen countries across the globe.
On a company wide basis, Cushman & Wakefield continued to invest in targeted acquisitions and key hires as part of our strategic plan. Overall, in 2012, our firm hired more than 1,700 professionals worldwide.
BOARD OF DIRECTORS
Chairman of the Board and CEO, EMEA
Executive Vice President & Chief Financial Officer
Co-Chairman of the Board
Managing Director, EXOR
President & CEO, Global Head, Corporate Occupier and Investor Services
Chief Operating Officer, EXOR