Property falls hit consultants

The world's two largest property consultants today reported a massive collapse in profits as the credit crunch savaged business on both sides of the Atlantic.

CB Richard Ellis was rocked by an 88% fall in second-quarter profits from $141.1 million to $16.6 million while rival Jones Lang LaSalle delivered a 69% slump from $77.9 million to $24.5 million.

CBRE chief executive Brett White said the grim second quarter was "primarily driven by significantly lower sales activity brought about by continued deterioration of the global credit markets, which initially began in the US and has now spread worldwide".

He said: "Softer leasing activity due to weakened economic conditions, mainly in the Americas and the UK, contributed to the decline."

The industry has been hit by the falling value of property and slowing demand among tenants for new space. Hundreds of jobs have already gone in London with many more expected to follow.