UPDATE 1-Property services shares fall on broker pay fears

* Jones Lang LaSalle shares fall 7.6 pct

* CB Richard Ellis shares down 3 pct
(Updates with CB Richard Ellis forecast, adds background,
updates to closing stock prices)

NEW YORK, Oct 27 (BestGrowthStock) – Shares of commercial real
estate services companies Jones Lang LaSalle Inc (JLL.N: ) and CB
Richard Ellis Group Inc (CBG.N: ) tumbled after the companies
gave earnings reports that had some investors concerned that
broker compensation might be getting ahead of the recovery.

Shares of Jones Lang LaSalle dropped 7.6 percent, or $6.53,
to close at $78.84 on the New York Stock Exchange on Wednesday.
They were among the top losers on the Big Board.

CB Richard Ellis shares were down 3 percent, or 56 cents,
at $18.34.

Both companies are global, with armies of brokers who link
buyers and sellers of commercial real estate, as well as
landlords and tenants. The companies also manage commercial
real estate property for owners and oversee commercial real
estate needs for large corporations.

Brokers’ compensation had fallen sharply over the past two
years, when commercial real estate went into a severe slump.

On Tuesday, Jones Lang LaSalle reported third-quarter
earnings far short of Wall Street’s forecasts. CB Richard Ellis
reported earnings above Street expectations.

During their conference calls Wednesday, both Jones Lang
LaSalle and CB Richard Ellis said they had started to restore
broker compensation because the real estate market has picked
up, globally and especially in the United States.

“Revenue grew nicely,” Sidoti & Co analyst David Gold said.
“Compensation grew faster than revenue. There’s some fear out
there that there is some catch-up to be done industrywide” for
revenue to match compensation.

Compensation outpacing revenue would cut into the
companies’ bottom lines.

Gold said investors are wondering, “How long does that
(compensation growth) run for and does business grow enough to
offset that?”

Additionally, during its conference call, CB Richard Ellis
issued an outlook that was in line with the average of
analysts’ estimates, but JMP Securities analyst William Marks,
who had a higher forecast, said in a note that the company’s
outlook indicates growth may slacken in the fourth quarter.

CB Richard Ellis forecast earnings of 65 to 70 cents per
share. The average of analysts’ forecasts was 68 cents per
share, according to Thomson Reuters I/B/E/S. JMP Securities
had forecast 72 cents per share.

Jones Lang LaSalle did not issue a forecast.
(Reporting by Ilaina Jonas, editing by Gerald E. McCormick,
Gary Hill)

UPDATE 1-Property services shares fall on broker pay fears