Newmark Buys Altus Group's Development Advisory Arm as Altus Pivots to Pure-Play Tech

Altus Sells Development Advisory to Newmark in Latest Divestiture

Newmark has acquired Altus Group's development advisory business, a global team of 335 employees operating across Canada, the United States, Australia and Thailand. The deal marks Altus Group's second major divestiture this year, following the sale of its Canadian appraisals business to Newmark in March. Financial terms were not disclosed.

The announcement confirms Altus's strategic pivot toward becoming a pure-play technology company, centered on its underwriting software Argus and newer AI-powered tools. As part of the transaction, Newmark is expanding its existing relationship with Altus to include Argus Assist, the firm's conversational artificial intelligence solution.

The acquired team will report to Peter Trollope, Newmark's global head of occupier solutions, and join the firm's Management Services business. Newmark's chief administrative officer, Roger Anscher, said in a statement that the team's market expertise and client relationships "are a strong complement to our platform." No details on headcount consolidation were provided, and Newmark did not respond to a request for comment on potential job reductions.

For Altus, the deal follows a strategic review of alternatives launched in August 2025 that briefly considered a full sale of the company. That review ended two months later with the ouster of then-CEO Jim Hannon and the return of Mike Gordon, who led the firm until 2020. Gordon has framed the latest sale as the last divestiture of the year, allowing Altus to concentrate on its valuation software and data offerings.

What the Deal Means for Newmark, Altus and the Valuation Market

Why Altus Keeps Selling Pieces

Altus's divestitures are the clear execution of a strategy Gordon signaled when he returned: shrink the service-heavy parts of the business and concentrate on software, where margins are higher and revenue is more recurring. The March sale of the Canadian appraisals business and now the sale of development advisory strip out roughly 475 employees in less than six months. The logic is defensible — Argus is a market-standard underwriting tool, and Altus is positioning AI-assisted products like Argus Assist as the growth engine. But the execution risk is visible in the stock price: Altus shares are down nearly 20% this year, suggesting investors are not yet convinced the pure-play story will translate into faster growth.

What Newmark Gets

For Newmark, the acquisition is a straightforward capacity play. Management services is already Newmark's largest business line, generating $695 million in revenue in the first half of 2026, up from $582 million a year earlier. Adding a 335-person development advisory team deepens its bench in a segment where relationships and local market knowledge drive deal flow. The expanded Argus contract, including Argus Assist, also gives Newmark's professionals direct access to the AI tools embedded in underwriting workflows — a small but symbolically important step as brokers compete on data and technology.

Deal Fatigue in the Brokerage Market

Newmark's aggressive acquisition pace comes at a time when its financial performance is mixed. The firm reported record second-quarter revenue but net income fell 5.7% to $27.1 million. Its shares are down roughly 9% this year — a middling performance against CBRE, which is down 6%, and JLL, which is up more than 8%. Colliers has fared worst among peers, down 30%. The divergence suggests investors are rewarding firms that can show margin expansion, not just revenue growth, and Newmark's string of acquisitions will need to integrate cleanly to avoid the kind of cost drag that shows up in net income.

Valuation Services as the Long Game

The appraisals and development advisory purchases feed the same strategic objective: making Newmark a larger player in valuation and advisory, which was the smallest slice of its management business in the second quarter at 16.4% of segment revenue. The timing is notable — a rebounding transaction market would lift demand for both development advisory and appraisal services, and Newmark is positioning itself ahead of that cycle. The risk is integration: two Altus businesses acquired within months will need to be folded into Newmark's platform without disrupting existing client relationships or losing key staff.

Next Steps for Newmark Management, Altus Executives and Rival Brokers

• Newmark management: Integration discipline is the immediate test. The March appraisals deal and this development advisory acquisition bring 475 combined employees into the platform; the 5.7% second-quarter net income decline shows there is little margin for cost overruns. Set explicit revenue-per-employee targets for the acquired teams by the next earnings call.
• Altus executives: With divestitures complete for the year, the burden shifts to proving the software story. Argus Assist and the AI-enhanced valuation tools need to show measurable adoption and pricing power by the time Altus reports full-year 2026 results.
• Investors in Newmark: Watch third-quarter management services revenue, the first full quarter that includes the development advisory team, and track whether valuation and advisory services exceed the 16.4% share of segment revenue recorded in the second quarter.
• Rival brokers: Newmark's expansion of both headcount and AI access through Argus Assist raises the competitive bar in occupancy solutions. Firms that lack equivalent in-house data and underwriting tooling should expect pricing pressure on advisory fees.