H
oward Lutnick's tenure at Newmark has been marked by significant growth and transformation. As the firm's chairman, he played a crucial role in its expansion into a global commercial real estate powerhouse. Under his leadership, BGC Group acquired Newmark in 2011 for an undisclosed sum, pumping in capital to buy up talent and acquire smaller rivals.
The results have been impressive, with Newmark now mentioned alongside major players like JLL, Cushman & Wakefield, and CBRE. Analyst Alexander Goldfarb credits Lutnick's involvement in transforming the company from a regional player to a global one. "It's one of the best positioned real estate players today," he said.
However, Lutnick's departure for Washington to take on a position as President Trump's commerce secretary has left some uncertainty about Newmark's future. Despite this, executives are confident that the firm has the talent and momentum to continue its path without him. "I'll miss Howard," CEO Barry Gosin said, "but the day-to-day business runs."
Lutnick's impact on Newmark cannot be overstated. He used his Rolodex in corporate America to help open doors and win business for the company. His involvement also bankrolled the business, allowing it to expand its services and acquire smaller rivals.
While Lutnick has been instrumental in Newmark's success, not everyone is a fan of his leadership style. Some dealmakers at the company were critical of his changes to employment contracts, which required brokers to accept stock options that would vest over time. However, these changes ultimately proved prescient, helping to retain talent and yielding profits for those who remained at the firm.
More recently, Lutnick attracted shareholder outrage when he was awarded a $50 million bonus from Newmark in 2021. However, this anger has faded as the company's stock has risen and its competitiveness in the commercial real estate services business has increased. "We are well in the conversation," Gosin said, referring to Newmark's increasing competitiveness.
Lutnick's legacy at Newmark is complex, but his impact on the company's growth and transformation cannot be denied. As he prepares to leave for Washington, executives are confident that the firm will continue to thrive without him.
