Newmark (NMRK) Expands Capital Markets Services With New Launch
Newmark Group, Inc. NMRK recently expanded its Capital Markets services by launching the Data Center and Digital Infrastructure practice group. This group is additive to Newmark’s global Data Center Consulting Group.
The company’s recent move further strengthens its expertise in alternative assets, making it a strategic fit. Notably, Newmark has bagged the number one position in total investment sales representation over the last four and a half years.
The demand for data centers has been booming on the back of advancements in generative artificial intelligence and machine learning. This growth is expected to increase manifold in the next few years, setting the ground for data center companies and propelling the sector further.
Amid this, Newmark’s concerted efforts toward growing and strengthening its Capital Markets platform are likely to pay off well. Also, the focus on fortifying its emerging and alternative asset classes bodes well.
Further, to anchor the practice group, the company appointed Brent Mayo as the Executive Managing Director specializing in capital formation, financings, asset sales and platform advisory. His role in the company will be to work closely with the Capital Markets advisors on capital formation, financing and asset and portfolio sales, as well as the advisors from the firm’s Data Center Consulting Group to lead the market in data center strategies, valuation and advisory, management, evaluation and performance.
Per Chad Lavender, president of Capital Markets for North America, “As digital infrastructure and data centers have become increasingly relevant in today’s global digital economy, we are excited to broaden Newmark’s reach with an industry leader and professional of Brent’s esteem, which significantly enhances our capabilities in an asset class as important as Capital Markets Data Centers and Digital Infrastructure.”
Nonetheless, macroeconomic uncertainty and a high interest rate environment remain key near-term concerns for the company.
In late July 2023, the company posted second-quarter 2023 results, with adjusted earnings per share of 18 cents, missing the Zacks Consensus Estimate of 23 cents. The figure was also lower than the prior-year period’s 46 cents.
Although quarterly revenues of $585.8 million surpassed the consensus estimate by 4.04%, the figure declined 22.5% year over year.
NMRK currently carries a Zacks Rank #5 (Strong Sell).
Its shares have lost 12.9% in the year-to-date period against the industry’s growth of 14.6%.
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