Global real estate broker CBRE has announced it will discontinue most of its business in Russia, in response to what it described in a statement as 'the horrific attack on Ukraine'.
The company has begun the process of exiting its office in Moscow, which provides leasing, investment, property management and valuation services, and terminating two existing affiliate relationships in the country.
CBRE added: 'Consistent with its contractual obligations, CBRE will continue to manage facilities and provide other essential services for existing multi-national clients that are operating in Russia.
'CBRE is working diligently to support its loyal and hardworking colleagues in Russia who will transition from the company. CBRE regrets the impact that this transition will have on those employees, who are leaving the company through no fault of their own.'
It is understood that the discontinued operations in Russia constituted less than 1% of CBRE’s global revenue in 2021.
The news came as JLL confirmed it was still monitoring the situation. The broker told PropertyEU: 'We continue to monitor this highly volatile and dynamic situation closely. It is too early to predict any potential market or business changes.
'Our priority is the ongoing safety and well-being of our people and clients. We are investing significant resources to protect them, support the relief efforts, as well as help those in Russia (people and clients) adjust to the rapidly changing situation. This includes our commitment to help clients consider their actions regarding their own operations.'
Industry makes a stand
Toronto-headquartered Colliers announced on Monday it was halting operations in Russia and Belarus with immediate effect, making it the broker with perhaps the most striking response to the crisis.
Colliers has a robust business in Central & Eastern Europe (CEE), including a presence in Kyiv, Ukraine, where it has been operating for around 25 years.
The firm moved into new premises in Kyiv last May, taking space in the IQ Business Center. At the time, Alexander Nosachenko, managing director of Colliers Ukraine, said: 'We are expanding and have very ambitious plans for further development of business and market in general'.
This week, Jay Hennick, global chairman & CEO of Colliers said: 'I am appalled and saddened by the unnecessary loss of life and the displacement of millions of Ukrainians from their home. We cannot and will not stand idly by. Our decision to exit Russia and Belarus is one we make with conviction.'
One firm which has not yet released comment is Cushman & Wakefield, a broker which has been operating in Russia since 1995, and which employs a team of more than 150 people in the country, according to its website.
Industry responses
Many real estate companies have so far pledged funds and even warehouse and hotel space to assist refugees fleeing Ukraine.
As well as denouncing Russia's invasion, CBRE said it had been providing physical and direct monetary assistance for employees of CBRE’s affiliate in Ukraine who are in need.
CBRE staff are understood to have given generously to the company’s global fundraising campaign to benefit the UNHCR, the UN Refugee Agency's equitable humanitarian relief efforts.
Meanwhile, Futureal-Cordia-HelloParks Group became the latest CEE-focused firm this week to help Ukrainian refugees with hundreds of millions of Hungarian forints, housing, shelters and kindergarten provision.
'We are following events in Ukraine with a heavy heart and with a deep sense of duty to help. I am very proud of everyone at Futureal-Cordia Group, as many of our colleagues have already taken in refugees and many are preparing to also actively participate in the programmes and donations we are organising,' said Gábor Futó, founder and co-owner of Futureal Group.
