Jones Lang LaSalle (JLL): A Mispriced Real Estate Giant?

Commercial real estate has spent two years in the penalty box. Office headlines, rate hikes, and frozen transactions pulled the whole sector down … including businesses that don’t actually depend on office buildings to grow.

That’s exactly why I’m seeing an opportunity in Jones Lang LaSalle (NYSE: JLL).

JLL is one of the largest global real estate services companies, but the market still values it like a pure-play office business. 

In reality, JLL is increasingly a recurring-revenue, outsourcing, and industrial/data-center services platform with improving fundamentals, strong cash flow, and a deeply discounted valuation relative to peers. It’s also an A rated “Strong Buy” according to our Zen Ratings system.

If real estate transactions continue normalizing and outsourcing trends keep accelerating, JLL could be one of the cleanest “cycle recovery + secular shift” setups in the market. Here’s why.

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The Market Still Thinks “Office” | But JLL Isn’t an Office Stock Anymore

Much of the sector skepticism is rooted in the idea that JLL’s fate is tied to office leasing.

But today, most of JLL’s revenue comes from:

• Work Dynamics (outsourced property & facilities management)
• Industrial & logistics leasing
• Data center advisory
• Valuation & consulting
• Global investment management
• Recurring service contracts with Fortune 500 companies

Office leasing is shrinking as a share of the business, yet the stock is priced as if it’s 2015. JLL is now closer to a global operations + facilities platform than a cyclical office pure-play.

A Real-World Example of the Trend: JLL Wins WestJet’s Entire Facilities Portfolio

One piece of news that didn’t get much attention is the exact kind of catalyst long-term investors care about: WestJet selected JLL to manage its entire 1.9 million-square-foot portfolio, including HQ and 17 airports.

Why does this matter?

• It’s a multi-year, annuity-like contract
• Expands JLL’s aviation footprint
• Shows corporations are actively outsourcing integrated real estate management
• Reinforces the strength of JLL’s Work Dynamics segment

This deal is small in absolute dollars, but large in signaling power. It illustrates the single strongest part of the JLL bull case: growing recurring revenue that smooths earnings through cycles.

Valuation: Still Cheaper Than Its Closest Peer CBRE

Before 2024, JLL and another commercial real estate services firm, CBRE (NYSE: CBRE), traded at similar multiples.

Now?

• JLL’s forward P/E: ~14.75x
• CBRE’s forward P/E: 20.66x

JLL’s multiple compressed harder than the business fundamentals warrant. But as transaction volumes recover, the spread between JLL and CBRE is likely to close.

This is a classic setup:

A high-quality operator punished too heavily during the downturn, now positioned for normalization tailwinds.

It’s also partly why JLL receives a B rating in our Value Component Grade, while CBRE is only scoring a C. 

See all JLL’s Component Grades

I also like the technicals on JLL more than any other stock in the sector. The stock is resting above a cup and handle pattern (yellow) it already broke to the upside:

Structural Tailwinds Behind the Scenes

Lastly, this isn’t just cyclical upside.

 JLL sits at the center of several long-term secular shifts:

• Corporations outsourcing property + facilities management
• Growth in data centers and logistics real estate
• Global ESG retrofitting and energy-efficiency mandates
• AI-driven real estate analytics
• Institutional capital flowing into private CRE
• Increasing cross-border real estate investment

These forces expand JLL’s recurring revenue base and reduce its reliance on old-school office leasing.

My Take

JLL is a misunderstood real estate services platform still trading at “office collapse” prices. The market is overlooking growing recurring revenue, winning major new outsourcing mandates, and benefiting from a real recovery in capital markets activity.

That’s the essence of the bull case. If it’s one you want to track, click here to add JLL to your watchlist. 

Check out other Real Estate Service stocks here.

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