Brokerage CEOs are bringing home much less bacon these days.

The top brass at the four largest firms all took significant hits to their income in 2023, mostly because of stock awards.

CBRE’s Bob Sulentic took a 29% hit to his pay last year, bringing him to $18.4M. That is in line with the 28% decline in net income CBRE recorded in 2023.

JLL’s Christian Ulbrich brought home $12.04M last year, only slightly below the $12.06M he got in 2022 — mostly because of an 11% drop in his stock awards.

Cushman & Wakefield’s Michelle MacKay earned $4.7M, 5.4% below 2022, even though she got promoted in the interim. Her base pay shot up 33% when she was named CEO in July, but her stock awards and bonuses fell. She was outearned by Brett White, a former CEO who didn’t receive a salary or bonus last year but raked in more than $6.8M from stocks and other compensation.

Colliers’ Jay Hennick took the biggest hit, receiving $1.5M in salary but no bonuses or other compensation. That’s well below the $5.4M he earned in 2022 and $14.7M in 2021. He was also outearned by multiple Colliers execs.

The brokerages have all been hurting since the pandemic began — and especially since the Fed started raising interest rates. But Q1 earnings showed things are turning around. 

Meanwhile, thousands of brokers have lost their jobs over the last few years and are navigating a shaky job market. 

— Mark F. Bonner, Jay Rickey, Catie Dixon and Kayla Carmicheal 

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On Our Radar

• The Dow dropped 300 points ahead of the Fed meeting. The Fed meeting started today and concludes Wednesday, with a press conference featuring Fed Chair Jerome Powell. Most observers expect more of the same: wait for longer. 

• The World Bank is aglow about the global economy. In its Global Economic Prospects report released today, the bank forecasts worldwide economic stabilization following the pandemic and wars in Europe and the Middle East. However, countries that account for more than 80% of the world’s population will continue to stumble. 

• Earnings calls today: Retailers GameStop and Casey's General Stores are reporting after the market closes. ICYMI: Roaring Kitty has reportedly lost millions after GameStop's stock price collapse. And Casey’s is rapidly adding hundreds of locations.

• Bisnow London's annual two-day build-to-rent conference kicks off this afternoon. BTR, the UK’s version of multifamily, boomed in London last year, and more than £8B is targeting the sector for UK investment in 2024. Sign up to attend the event here.

• Gosh! Life moves pretty fast. E.T. (1982), Ferris Bueller (1986) and Napoleon Dynamite (2005) were all released in theaters on this day. 

This Morning’s News

JLL Faces Lawsuit From Battery Manufacturer (WCBD-Charleston): A battery manufacturer, investing $279M to build a new plant in Colleton County, has sued JLL over a $5M fee for location scouting and negotiating economic incentives. Get more details about the suit.

Bill Gates' Firm Initiates Nuclear Project (GatesNotes): TerraPower, backed by Bill Gates, has started constructing what's touted as the most advanced nuclear facility in the world, located in Wyoming. This initiative is part of Gates' broader vision for innovative clean energy solutions. Learn more about the development.

Whitestone REIT Rejects MCB’s Proposal (SEC): Whitestone REIT has turned down a $700M buyout offer from MCB Real Estate, indicating possible valuation disagreements or strategic directions between the parties. Here's why Whitestone said "no."

Today’s Deep Dive: Landlords Cash In On Concert Demand As Live Nation Squeezes Small Venues

Live music venues are crucial parts of today’s retail landscape and have largely become the preferred anchors of mixed-use centers.

Small venues are ready to rock ‘n’ roll, but Live Nation is unplugging their amp.

Live Nation is under scrutiny from the Department of Justice for alleged anticompetitive practices. Independently owned venue operators and advocacy groups told Bisnow Live Nation will blackball locations that don’t follow its preferences, and the opening of a new Live Nation venue sometimes means the closure of multiple nearby smaller venues soon after.

“They will actively go after other venues to try to put them out of business or acquire them,” said Jamie Dunphy, the chair of the music policy council at the nonprofit advocacy group MusicPortland.

Read the full story here.

FTC Takes Stand On AI, Rent Pricing (Atlanta News First): The FTC Chair has declared there is no exemption for AI when it comes to legal compliance in setting rent prices as the investigation into possible anticompetitive practices by RealPage continues. Here's the FTC's stance.

Cinema Giant Mulls Restructuring (Bisnow): Cineworld, one of the UK’s largest cinema chains, is considering a corporate sale or disposition of unprofitable sites. The chain has about 100 locations in the UK and is a popular shopping center anchor. Its U.S. and Europe properties are not included in this review. Learn more about Cineworld’s options.

Massive Bet By IQHQ, Bank OZK Hit By Shifting Market (Bisnow): The 1.7M SF RaDD life sciences project was supposed to be a major economic driver for San Diego. Now it’s a symbol for how quickly the market has turned for the sector as it drags down its developer and its lender. See what went wrong at RaDD.

Rising, Rising, Rising U.S. Rents (Redfin): Asking rents for U.S. apartments have increased for the second consecutive month, reaching their highest level since 2022. Learn where prices are spiking.

Pimco Sees Risk Of Regional Bank Failures (Bloomberg): Pimco is raising alarms about the potential for more U.S. regional bank failures, attributing the risk to ongoing struggles in the commercial property sector. Read more about Pimco's warning.

Corporate Feud Escalates (Blackwells Capital and Braemar Hotels): Blackwells Capital has released a presentation criticizing Monty Bennett's management, while Braemar Hotels & Resorts has launched a website to counter Blackwells' campaign. Take a look at the presentation and the ExpelBlackwells website.

REIT Liquidity Adjustments (Wealth Management): Nontraded REITs are adapting liquidity features to address redemption requests, balancing investor access to funds with maintaining stability. Here's why the REITs are shifting their game plans.

Ain’t No Sky High Enough (New York Post): The U.S. has approved the design of what could become the tallest skyscraper in the country, with no limits set on its height. How tall, exactly?

From The Pulpit To The Slammer (Dallas Morning News): A pastor in Texas has been sentenced to 35 years for stealing real estate from several churches. Learn more about the case.

Disruptive Changes In Healthcare Architecture (CoStar): Natural disasters and advancements in technology are pushing hospitals to rapidly redesign, including higher ceilings and more open-floor space to fit large robotic surgical arms. Discover the shifting healthcare needs.

Cell-Tower REIT Job Cuts (MarketWatch and Seeking Alpha): Cell-tower REIT Crown Castle is laying off more than 10% of its workforce. The company also lowered its 2024 guidance ranges. Learn about the layoffs and read more about its AFFO outlook.

Former Disney Imagineering Head On Injecting Magic Into CRE (Bisnow): Gensler Global Entertainment Leader Bob Weis, the former president of Walt Disney Imagineering, told attendees of NeoCon that the secret to designing buildings with impact is injecting a little razzle-dazzle. Get his Mouse-inspired tips.

Small Business Optimism Peaks (BNN Bloomberg): U.S. small business sentiment increased for the second month in a row, reaching its highest level this year, but inflation remained the primary worry among business owners. More details on the small business owner perspective.

Retail Sales Continue To Surge (Chain Store Age): Retail sales rose significantly both month-over-month (1.4%) and year-over-year (3%), the National Retail Federation reports. Dive into the rising consumer confidence.

Hotel Growth In Unusual Places (CoStar): The highest share of hotel rooms under construction are outside city centers, but the drivers for growth in destinations vary. Is your favorite secret vacation spot on the list?

These Restaurants Are Poised For Rapid Expansion (Morningstar): Only 10 publicly listed U.S. restaurant companies saw comparable-store sales rise year-over-year. Morningstar dove deep into financial performance to see what eateries are ready to explode. Find out which ones.

CoreCivic Shares Drop On Contract Termination (Morningstar): U.S. Immigration and Customs Enforcement is terminating its service agreement for a CoreCivic facility in Texas that generated $157M for the company last year, about 16% of its total revenue. Read more here.

***

The First Draft is produced by Director of Newsletters Jay Rickey, Managing Editor Catie Dixon, Editor-in-Chief Mark F. Bonner and Deputy Newsletter Editor Kayla Carmicheal, with an assist from ChatGPT. We’d love your feedback! Email us at firstdraft@bisnow.com. 

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