Two growth engines, one margin test
- Commercial Real Estate Services is rebounding, with Q1 net revenue up 13% and Capital Markets revenue up 43%.
- Engineering is the main expansion bet, with management still targeting more than 25% top-line growth in 2026.
- Investment Management is growing, but its Q1 net margin fell to 37.4% as integration costs hit.
- Management kept the 2026 fundraising goal at $6 billion to $9 billion, which matters for a 2027 earnings rebound.
- Debt is higher because of Ayesa, so deleveraging in the second half is a key proof point.
Growth is better balanced now
Colliers has a clearer growth setup than it had earlier in 2026. Engineering was already the big story because of the planned Ayesa deal. Q1 added a second driver: Commercial Real Estate Services, especially Capital Markets, where revenue grew 43% in the quarter.
Management now expects Capital Markets to grow about 25% for the full year. Leasing is expected to grow around 8%, and Outsourcing around 5%. That helps offset the known problem in Investment Management, where spending on integration is pulling margins down for a few quarters.
The bear case is still real. Investment Management margin was 37.4% in Q1, and management has guided this business to stay in the high 30s before recovering toward the low 40s. If that recovery slips, the company's profit growth can lag its revenue growth.
The stock also needs proof that Ayesa closes cleanly and that debt comes back down after the deal. This is not a clean low-risk story. It is a company trying to turn three different engines at once, while one of them is under repair.
Fees from buildings, projects, and capital
Colliers makes money in three main ways. It advises on commercial real estate deals, manages engineering and project work, and earns fees from investment funds through Harrison Street Asset Management.
Some of the business moves with the property cycle. Capital Markets helps clients sell buildings and arrange debt, so it can rise fast when buyers come back. Leasing also depends on tenant demand, office use, warehouse activity, and business confidence.
Management wants the company to be less exposed to that cycle. It says more than 70% of earnings come from more resilient businesses, and that mix approaches 75% after recent acquisitions. Those include Engineering, Investment Management, Property Management, and Outsourcing.
What Colliers sells
Capital Markets
This team helps clients buy, sell, and finance commercial properties. It is cyclical, but it is the fastest current driver inside Commercial Real Estate Services, with Q1 revenue up 43%.
Leasing
Leasing helps landlords and tenants sign space agreements. Q1 revenue rose 9%, led by U.S. industrial property.
Property Management and Outsourcing
These services are more repeatable than transaction work. Management expects Outsourcing to grow around 5% for full-year 2026.
Engineering and Design
This segment provides engineering and project management services. Management expects more than 25% top-line growth in 2026, helped by the planned Ayesa acquisition.
Harrison Street Asset Management
This unit manages alternative real estate investments and raises new capital from institutions and private wealth clients. The 2026 fundraising target is $6 billion to $9 billion.
RoundShield European credit platform
RoundShield adds European credit, student housing, and hospitality exposure to Investment Management. It also adds integration work, which is part of the near-term margin pressure.
Revenue mix before Ayesa
Segment shares use full-year 2025 revenue from Colliers' February 2026 annual results release: $3.29 billion from Commercial Real Estate Services, $1.73 billion from Engineering, and $532.3 million from Investment Management, against $5.56 billion of consolidated revenue. Ayesa can change the mix after it is included.
What can break the setup
Investment Management margin recovery slips
High impact · Medium oddsInvestment Management is the main execution risk. Q1 net margin was 37.4%, and management expects pressure for a couple of quarters before recovery toward the low 40s. If integration costs last longer, earnings may disappoint even if revenue grows.
Ayesa adds scale but also debt
High impact · Medium oddsThe Ayesa deal expands Engineering in Europe, Latin America, and the Middle East. It is funded with debt, and internal updates cite leverage around 2.9x to 3.0x near the Q2 close, while earlier deal math pointed to about 2.7x pro forma. That gap makes the post-close debt path important.
Commercial real estate recovery fades
Medium impact · Medium oddsCapital Markets and Leasing depend on buyers, lenders, and tenants being active. Q1 was strong, but these lines can turn quickly if rates rise, credit tightens, or property values fall. The raised Capital Markets outlook gives upside, but also sets a higher bar.
Fundraising misses the target
Medium impact · Medium oddsInvestment Management needs fresh capital to restart stronger fee growth. Management kept its 2026 fundraising target at $6 billion to $9 billion after raising nearly $1 billion in Q1. A shortfall would make the expected 2027 earnings rebound harder.
Global activity stays uneven
Medium impact · Medium oddsRecent strength was led by North America, while the outlook for EMEA and APAC transaction volume is still an open question. Colliers also reports in U.S. dollars, so currency moves can affect reported earnings. A weaker global backdrop can hit transactions, fundraising, and engineering demand at the same time.
In one breath
What does Colliers International do?
Colliers advises on commercial real estate, manages engineering and project work, and runs real estate investment funds. Its main segments are Commercial Real Estate Services, Engineering, and Investment Management.
Why is Ayesa important for Colliers?
Ayesa is meant to make Engineering much larger and more global. Management expects the Engineering segment to grow more than 25% in 2026, helped by this deal.
What is the biggest risk for CIGI right now?
The biggest near-term risk is Investment Management margin pressure. Q1 net margin was 37.4%, and the thesis depends on that pressure being temporary.
Is Colliers mainly a real estate broker?
Commercial real estate advice is still the largest revenue segment, but Colliers is broader than brokerage. Management says more than 70% of earnings come from more resilient areas such as Engineering, Investment Management, Property Management, and Outsourcing.