Thank you for joining us. With me today is Christian Mayer, our Global Chief Financial Officer and also Chief Executive Officer of our commercial real estate division.

This call, as always, is being webcast, and the presentation materials are available on our website. Colliers delivered strong results for 2026 for the first quarter, underscoring the durability of our company.

We have made solid progress in a still uneven market, supported by continued strength in our resilient businesses and improving activity in commercial real estate. Colliers is built to compound shareholder value through three growth engines across the built environment: commercial real estate, engineering and project management, and investment management.

From an earnings perspective, more than 70% of our earnings come from resilient businesses: engineering, project management, investment management, property management, and mortgage servicing. This mix gives Colliers greater stability through market cycles and more growth opportunity than others.

These attributes, together with our enterprising culture and meaningful inside ownership, have supported a 31-year record of delivering 17% compound annual growth in per share value. Importantly, we achieved these performance numbers at a time when our shares are trading well below their intrinsic value, creating significant upside potential for shareholders.

During the quarter, we strengthened our leadership team to better capture growth opportunities in engineering, appointing Elias Mulamoottil as the CEO and Christian as the CEO of our commercial real estate business. We also increased our financial flexibility through a $400 million long-term debt financing and an extension of our revolving credit facility, supporting the acquisition of Ayesa engineering, which we expect to close later this quarter.

In commercial real estate, the recovery continues to gain momentum. Transaction services, including both capital markets and leasing, were up an industry-leading 25%, reflecting market share gains across the globe for Colliers and improved investor sentiment is industry-wide.

Engineering also delivered strong performance, providing highly technical support across attractive end markets like infrastructure, transportation, property and buildings, water, and environmental. This work also has strong visibility and consistent margins while creating meaningful opportunities for growth and for collaboration across our other businesses.

The acquisition of Ayesa will accelerate our momentum in engineering even further by expanding our geographic reach, adding in-demand capabilities, and extending our growth runway into new markets. In investment management, assets under management increased 9% year-over-year to almost $1.9 billion.

At Harrison Street, we invest capital along institutional and high net worth individuals across high-growth, infrastructure-related assets, including data centers, as well as demographic-driven defensive sectors such as senior housing, student housing, medical office, and healthcare delivery. Over more than two decades, our differentiated investment strategies have delivered strong returns for investors and are supported by powerful secular and demographic tailwinds that continue to support our growth.

We are very excited about Harrison Street's prospects as we continue to scale the business and capitalize on the many opportunities ahead. We believe we are well positioned to continue to generate attractive growth opportunities for our investors and for our shareholders.

With that, I'll turn things over to Christian, after which we'll open the line for questions. Christian?

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Good morning, everyone. Following up on Jay's overview of our strategic progress this quarter, I'll now dive into the financial details that support our strong start to 2026.

Please note that the non-GAAP measures discussed are defined in our press release and quarterly presentation. Unless otherwise noted, all revenue growth figures are presented in local currency.

We have realigned our engineering and commercial real estate segments. This realignment resulted in a modest increase in CRE segment revenue with an offsetting decrease in the engineering segment.

Prior periods have been recast, and a historical comparative Excel file is available on our Investor Relations site. Our first quarter consolidated revenues were up 12%, and net revenues also increased 12% to $1.15 billion.

Adjusted EBITDA was $125 million, up 8%. Adjusted EPS increased 5% to 91 cents and was tempered by a higher-than-expected tax rate related to certain European operations.

We expect our tax rate to moderate in the coming quarters. The solid performance met our expectations and reflects effective execution across our business.

First quarter commercial real estate segment net revenue was up 13%. Capital markets revenues increased 43%, led by market share gains in the US and in parts of Europe, both in sales and debt finance.

We reported sales growth in all property types, but most notably data center development land and office. The UK, Germany, and Japan also posted strong year-over-year gains in office and industrial sales.

Leasing revenues were up 9%, with US industrial property leading the growth. Segment net margin was 6.3%, up 20 basis points over the prior-year first quarter, with operating leverage from higher transactional revenues partially offset by investment and recruiting across the segment.

First quarter engineering segment net revenue was up 13% from a mix of recent acquisitions and solid internal growth. End-market demand continues to be strong, especially in infrastructure and related areas.

Net margin was 9.5%, slightly lower than last year, reflecting lower workforce utilization in residential development and telecommunications, both of which we expect will improve as we progress through the year. Our overall engineering backlog continues to be robust.

Investment management net revenues increased 8%, driven by a recent acquisition and internal growth from new capital deployed. Net margin declined to 37.4%, as expected, as a result of planned investments to integrate and streamline under the Harrison Street asset management brand.

These costs will continue to impact margins for the next couple of quarters, after which we expect to return to a low 40s net margin profile. The IM segment raised just under $1 billion in new capital commitments during the first quarter, and we expect increasing momentum as the year progresses.

Our fundraising target for 2026 remains unchanged at $6 to $9 billion. Our balance sheet is strong, with leverage at 2.3 times, reflecting seasonal working capital usage, and with $1.5 billion in total credit availability as of March 31.

We expect to complete the acquisition of Ayesa Engineering in the coming weeks, funded from available credit. We are maintaining our full-year 2026 outlook for mid-teens revenue, EBITDA, and EPS growth.

Our solid Q1 performance, which met our expectations, is the foundation for this outlook. Our continued confidence stems from robust pipelines in commercial real estate transactions and sustained momentum in our resilient businesses.

While we acknowledge the recent increases in geopolitical risk and macroeconomic volatility, these risks are not expected to materially impact our 2026 results at this point, reflecting the inherent geographic, service line, and client diversification of our platform. That concludes my remarks.

Operator, can you please open the line for questions?

Great, thanks. Good morning.

My first question relates to, I think, in engineering some of the utilization being down a little bit, and I think you mentioned it was related to residential. Can you just talk a bit more as to whether you see that as temporary and how you manage margin in instances where some of these end markets may ebb and flow and just maybe give us a little bit more insight into how that business works in that manner?

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): It's a great question, Tony. We have a well-diversified engineering business that currently operates in three major markets: Canada, the US, and Australia.

In each country, we have a number of highly predictable and in high-demand end markets, including infrastructure, transportation, property, buildings, resi development, telecommunications, program management, institutional project management. A wide variety of end users.

That is intentional. We try to also have a well-balanced business between public and private sector clientele so that we can manage ebbs and flows like we're seeing today in residential land development and in telecom.

We manage the business for consistency in margins. From time to time, a couple of these areas will be stronger or weaker, and over time we're able to generate a consistent margin.

We do expect that these two areas will rebound in the coming quarters.

Thanks. Then my follow-up question relates to you all mentioning making some investments into the CRE segment.

Can you talk more specifically about what types of investments those maybe, whether it's people or other types of items and, kind of where you see the opportunity in making those investments?

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): Tony, there's really two areas, and you hit the nail on the head. It's people first and foremost.

We continue to recruit at an accelerating pace and bringing people into our capital markets and leasing business in major markets around the world. That's the primary focus.

Secondarily, and we've talked about this before, we are increasing the pace of our IT spending, both opex and capex. That is to enable AI and technology and efficiencies that are going to come from that, as well as enhanced abilities for our producers to be of service to clients and, hopefully, more productive.

Those are the areas that we're investing in.

Okay. Thank you.

Good morning, everybody. We had some pretty solid results from the CRE segment.

However, outsourcing growth was a bit on the soft side. Was there any tough comparables that you were lapping or just wanted to get a bit more color on what transpired here?

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Frederic, no real notable tough compares. We had slightly slower than we had hoped growth there, still in the low single digits, but nothing really of note.

We hope on a full-year basis that our growth will accelerate in that outsourcing area.

Thanks. Switching gears to investment management, we saw some pretty good growth, obviously some acquired growth in there as well.

As we look at the next couple quarters, how can we expect the pace of revenue to ramp both on an organic basis, fundraising, acquisition, and the like? Thank you.

IM is very interesting because we have spent the last couple quarters, and it's going to continue for a while, bringing together our four platforms under the Harrison Street brand. Needless to say, that has a lot to do with bringing people together, rebranding funds, streamlining accounting systems across the board, IT, and a variety of other areas.

We're very excited about that particular platform. It's got some great momentum in terms of, first of all, it's got unique and strong differentiated strategies, as I talked about in my comments.

Fundraising in particular is gaining momentum, as Christian mentioned. We're holding our forecast at 6+ billion of new capital.

We've also returned a lot of capital this past quarter to our investors in terms of property sales versus new assets acquired. There's a lot going on in that segment.

We're building what we think is a very strong Harrison Street asset management that's a truly global business with a streamlined and one management team. These things take time, and building companies like this is something that we've done many times over the years.

We feel like we're on pace or ahead. We feel like we're walking into a fundraising environment that should be more buoyant going forward, and the teams are excited, and we have several new strategies all around infrastructure and deep relationships that we've built with leading academic institutions, hospitals, all of which we have been serving for over two decades, but now new opportunities in 3P partnerships and a variety of other things are materializing, which are creating unique investment opportunities for our investors.

A lot there to unpack, but suffice it to say we're very excited about where IM will be in the next several quarters.

Great. Last one, maybe a follow-up.

With respect to the pace of fundraising, do you expect it to be even over the next quarters or just ramp up more into the back half of the year?

I'm sorry, I didn't hear that full question there, Frederic.

With respect to that pace of fundraising, do you expect that to come evenly over the next quarter or be more back-end loaded towards the back of the year?

It never comes evenly. It's, as you can appreciate [laughs], it is quite unpredictable.

We have bigger pipelines in terms of fundraising than we've ever had before. We've had good first closes or we're in the process of having first closes in the Basalt fund, in the Harrison Street closed-end fund, all of which there's only a limited amount of capital we can take.

It's a function of when the final decisions are made and when that comes in. We're expecting both of those to be substantially completed before the end of the year, but when the exact commitments are made is still up in the air a bit.

Will be. You can't really predict it.

Okay. Thanks, Jay.

Appreciate the color.

Hi, good morning. Thanks for taking the questions.

Maybe just a follow-up to that last one on the fundraising environment. Jay, I appreciate your comments around the unpredictability of the fundraising quarter-to-quarter, but maybe on that note, what gives you confidence on the trajectory towards that 6 to 9 billion in 2026?

Maybe you have an idea of how much advance fundraising is already soft-circled or in discussions and how that compares right now versus to where it did last year?

For sure it's way ahead of last year. The confidence that we have is that we have new strategies in the marketplace this year, which we didn't have last year.

We were completing our investment cycle in several of the funds last year, and this year we're open with new funds and new investment opportunities. There's a lot of investors looking at some of the unique Harrison Street products.

Infrastructure is all the rage. Everybody is talking about data centers.

That's a significant part of our business. I think we own 64.

We've been in the data center business at Harrison Street for six years now. This is a well-worn path for us.

In fact, we're considering, in a couple of cases, selling assets early because of the heat to buy data center assets. Our infrastructure doesn't end with data centers.

There's all kinds of other infrastructure-related assets, long-term investment opportunities that are a part of our open-ended funds, new opportunities in our closed-ended funds. There's some separate investments that our teams are making.

Then, of course, let's go back to the demographically driven assets that we have in seniors, students, healthcare delivery, all of which have huge tailwinds. One of the great things about this platform is that we have designed it to focus on a specific group of assets that have these tailwinds.

That's what's giving us the confidence that our results have been very good over decades. All of that gives us confidence that this will be a strong year for us, fundraising-wise, and we hope that we'll raise more money than the range that we've given you, but we are optimistic.

Thank you. That was a lot of helpful color there.

Maybe I'll switch gears to the commercial real estate business. The capital markets growth was exceptionally strong this quarter.

You're lapping a weaker comparative period, but are you able to identify how much of that growth reflects pent-up demand versus a sustained improvement in buyer confidence here? Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Erin, we watch our capital markets business very carefully. I believe this is our seventh quarter of capital markets growth on a quarter-over-quarter basis.

The conditions for transacting continue to improve, credit availability, bid-ask spreads, the desire of our clients and market participants to transact is improving because they see more transactions happening, which gives more confidence to investors, as well as to sellers. Nothing really in particular to note this quarter, but it is a continuation of this multi-quarter recovery in capital markets activity that we think we're in the early to mid-innings of a recovery.

We have a couple years at least to go to recover to prior peak transactional levels. I'd say we also have today a bigger, stronger, more productive producer workforce in our capital markets business than we ever have had in the past, we're feeling really positive.

I would underline a comment that I made. 45% in capital markets growth was significant, but when you take it together with our transactions, we were at 25% between leasing and capital markets.

We were industry-leading. That's very telling when you consider the other players in the industry on a global basis.

Thank you. I'll pass the line.

Thanks. Good morning, guys.

Nevan on for Steve today. You provided a little bit of color so far on the outsourcing segment.

I was hoping you could just touch on your expectations for growth in capital markets, as well as leasing, for 2026 and how that's expected to trend through the year. Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Sure, Nevan. Obviously, we talked about the strong growth in our transaction business in the first quarter.

I would expect that to continue on a full-year basis. Capital markets growth on a full-year basis somewhere in the 25% range, leasing in the 8% range or so on a full-year basis, and then rounding out our commercial real estate business, outsourcing growing in the 5% range on a full-year basis.

Continuing to see strong growth, not necessarily at rates that we saw in the first quarter, which is the seasonal slow quarter, growth there can lead to higher percentage numbers, but certainly on a full-year basis looking very, very solid right now.

Great. Thanks, Christian.

We're seeing a strong recovery here in the capital markets in the CRE business. I'm wondering if you're able to quantify the remaining upside in a full recovery scenario.

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): [Laughs]

Well, Nevan, I talked about, we're probably a couple of years away from a full recovery. As I mentioned, we have a bigger, better, stronger, more productive workforce today than we've ever had in the past.

We've been investing heavily into our debt finance business, capital markets producers in various specialty asset classes, multifamily being a big area of focus for us, which is a huge market that we have significant opportunity in for growth of market share. We think we're going to have a nice long runway of recovery ahead here, and looking to exceed prior high-water marks at some point in the next couple of years.

Great. Thanks for taking a stab at that, Christian.

Thank you for taking my question. Just curious, are you seeing any signs of caution in EMEA or APAC, maybe that decision-making is slowing?

One of your peers commented that they were seeing deals being canceled or delayed in Europe due to the geopolitical instability. Just wondering if you're seeing any of that and then how is that sort of working its way into your thoughts about the back half of this year.

I think it's true that Europe and APAC both are slowing. The strength of our results in the first quarter really came from North America, and the North American market continues to do well.

We have some insight into the current quarter as well. Europe is slowing, and we're watching it very carefully, and I think the geopolitical piece is part of it.

There's other reasons as well. There's not as much access to financing in Europe, which is an opportunity we see long term.

Asia-Pac is interesting because you've got some markets that are doing very well, and you've got other markets that used to do well last year, for example, and all of a sudden they're just stalled. The beauty of having a global business and strong positions in many markets is you're geographically diversified.

Not too many people talk about geographic diversification, and that creates another sort of stable business for us because you'll have some markets that will exceed and some markets that will be soft. It'll happen within service lines as well.

There was an earlier question, and I'm expanding your question here a little. It was an earlier question about outsourcing.

What's happened in some markets in property management, for example, as developers are running into financial difficulty, they're deciding that they're going to take property management in-house. In our view, we've seen it so many times over the years.

They do it for a year or two. They realize it's a very difficult business.

It's a lot of employees to manage over wide geographies, and the better way is to have somebody that has a national platform like us to manage nationally and focus on the asset management side, but that doesn't stop some of those property owners to insource property management. There's those kinds of things that are happening.

If you double-click and move back a little bit, the geographic diversification is what gives us confidence and strength in this wonderful platform we have called Colliers.

Thank you. No, that's really helpful.

Maybe latching onto that last point on seeing some insourcing from property owners, do you think at all this is being impacted by AI, that some of them are feeling maybe bolder, more capable with sort of advancements in AI to go ahead and insource the property management function?

There's no question that we have a massive property management business on a global basis, and there's no question that AI over time will not only provide us with unique information that will hopefully differentiate us in this business, but also help to streamline back-office functions. Property management is a fair-margin business, and so, yes, there'll be pickup in margin.

We'll be better at what we do, but I think you need a major player like us to be able to invest in the IT platforms necessary to bring better margins. When a small player is insourcing because he thinks AI is going to enhance his margin, I think is a bit naive.

Great. Thank you, Jay.

Very helpful.

Thank you, and good morning. First on investment management, IM, looks like $1 billion of fundraising in Q1.

Was it in line with your expectations, and was there any fundraising done in Q2 so far?

Christian Mayer (Global

Chief Financial

Officer and CEO of Commercial Real Estate Division): Himanshu, we always want to raise more capital, of course, our progress in Q1 was good. I guess what gives us more confidence, and it's part of the second part of your question, we have had closes here through April, off to a strong start, but look, we are continuing to focus on the full-year fundraise with the products that we have in the market.

Our visibility and confidence is high. We raised over $5 billion last year, and we're very confident we're going to raise more than that this year with the work we've done in terms of our products and our strategies as well as our fundraising capabilities, quite frankly.

Thank you, Christian. Then within IM, how much private credit exposure do you have, and have you seen any impact so far in terms of redemptions or any read-through for your business?

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Himanshu, I want to be very clear on this. We have no corporate credit exposure at all in our business.

We provide certain real estate asset-backed credit strategies and products. They're tied to real estate directly.

We are not, as I mentioned, not participating in any of this corporate-type credit or these other troubled areas that you may read about in the news.

Thank you so much.

It's also a small part of our business. You can correct me if I'm wrong, but I'm thinking it's 6% of the AUM.

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): It's 8 or 10% of the AUM.

8 8 8 or 10% of the AUM. Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

It's backed by multifamily real estate, primarily, very strong asset classes with strong underlying cash flows.

Got it. No redemptions as such regarding this exposure?

No. Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): No, exactly.

Thank you. Moving on, Q4 margins in IM expected to be in low 40% net margin, you mentioned.

Is it predicated on you raising this $6 to $9 billion of fundraising, or do you think if the fundraising is softer, this margin expectation will be revised down as well? Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Himanshu, our forecast all assembles and fits together. Of course, we expect to raise $6 to $9 billion to achieve the financial results that we've talked about for investment management, including that margin goal.

A few things have to happen. Integration is progressing, and will continue to progress towards year-end.

Then, of course, fundraising will, by year-end, lead to higher quarterly revenues, which will give us the visibility going forward and in terms of our margin profile.

Just to be clear, you raise capital and then you have to put it to work. If we raise our range of capital during the year and we start to put it to work, it doesn't pay dividends until the following year.

There'll be some modest pickup, but not material.

That's a good point. Thank you for that.

Maybe the last question here on CRE, commercial real estate. Clearly, strong capital markets revenues, strong leasing revenues, as you mentioned.

Maybe we did not see much operating leverage in Q1, in terms of incremental margins on incremental revenue. Is that correct?

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): We did see some operating leverage, Himanshu, in the quarter, as I mentioned earlier on the call, which was partially offset by our investments in recruiting and in IT infrastructure. I'll just mention that again that Q1 is our seasonal slow quarter in the business.

We achieved a good flow-through, and we have a couple of the things I've pointed out as well as some things like seasonality and our producer mix that impact the flow-through in the quarter. We're confident that we'll have higher flow-through later in the year, as we did last year.

You saw our margins pick up significantly in the third and fourth quarters, and that'll happen again this year.

Got it. Thank you.

Maybe my final question here, the question is really on synergies between engineering and CRE, commercial real estate. Have you identified, can you even quantify and how they will be realized over time?

That's my final question.

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): Himanshu, your question is about synergies between commercial real estate and our engineering business. I think we've talked about a couple times over the last few quarters about how our engineers are working with our capital markets professionals to help identify opportunities, to qualify land acquisition, to help with design activities, environmental assessments, property condition assessments.

That work continues in our engineering business and in consultation with our capital markets professionals, and it's something that is bearing fruit. I don't have the exact numbers for you at the moment in front of me, but it's an exciting, additional avenue to differentiate ourselves and provide additional value to our clients, including some of our largest clients.

Let me just add some obvious ones. We've talked about it on previous calls.

If a client wants to assemble land, whether they want to build multifamily development, a data center, etc., etc., our CRE professionals know the land business, know where the opportunities are. They bring it forward.

We are co-selling to our clients not only will we find the land, but we'll also entitle it. That's where the engineers start getting involved: roads, power sources, water, a variety of other things.

The client makes a decision. Do you want to buy the land based on the engineering information?

If they do buy the land, we then go into what can be built, we can project manage the construction of the project and deliver it at the end of the day. Frankly, our investment management team is also looking at opportunities to invest in some of those applications.

More and more our complementary services are working more closely together to either find, finance, entitle, build, own, all of these types of assets. That's one of the unique features of what Colliers is trying to build as a provider of multiple services across the built environment.

We believe all of these things are complementary. It's the same client base or similar client base.

It's high value, often very complicated services that need to be performed. Having deep client relationships and knowledge of the market, both locally and internationally, when it comes to financing these transactions, gives our professionals huge advantage.

There's many examples, but I hope that one gives you sort of a deep understanding of what we're seeing out in the marketplace, this merger of these various professional services.

Got it. No, this is great color.

Thank you, Jay and Christian, and I'll turn it back. Thank you.

Thanks. Most of my questions have been answered, just two quick ones for me.

First, just following up on capital markets, are you seeing any impact from the recent rate volatility in decision-making, even within North America, which has been strong? Then second, in terms of leverage, on a pro forma basis, I think you'll be at about 2.7 times, and how should we think about the pace of M&A for the balance of the year?

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Jimmy, rate volatility that we've seen in North America has been a little bit higher, but at this point, not a major concern. Obviously, we'd like to see rates lower and more stable, but with these rate conditions, we're still seeing significant interest in capital markets activity.

In terms of our leverage profile, you will see, with the Ayesa acquisition closing in the next few weeks, you'll see our Q2 leverage at the 2.9 to 3 times level, based on the seasonality of the business that in Q1 Q1 as our starting point, and we will see that leverage come down meaningfully in Q3 and Q4. In the meantime, we're going to continue to be active, looking at acquisitions of all kinds, but we're going to focus our efforts in the near term on tuck-in acquisitions that are smaller, that we can do at reasonable prices, and that make great strategic sense for us as we build out our platforms.

Christian makes a very good point. Acquisition pipelines are very interesting right now.

Yes, on smaller transactions that expand capabilities, fill white space, etc. Let's not forget the Ayesa acquisition.

One of the key strengths of that is it opens up four or five major markets for our engineering business. Since the transaction was announced, and consistently since then, we've been approached both at Colliers head office, but also the Ayesa management team about potential additions, those that want to join as partners in the Ayesa business.

We're quite excited about what the future holds there, and was one of the great strengths of that potential acquisition for us because it gave us a significant foothold in so many different markets, mostly infrastructure-related, highly complex, Ayesa's backlogs are stronger than ever, and the excitement level to enter the next phase of their growth is palpable. The reason I raise all of this is, we've got a buoyant pipeline of acquisitions, but we are cognizant of our leverage ratio, and that's something that we'll manage as we always have historically, but lots of stuff on the horizon.

Thanks for the color.

Hey, good morning, everyone. Just one quick one from me on the Canadian engineering and project management platform.

Have you started to see any early signs of infrastructure spend or the defense industrial strategy working through into your pipelines, and do you anticipate that being an opportunity in the next couple of years? Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division):

Daryl, it's a definite opportunity for us. I know we're working on port expansion in Quebec as an example.

Also defense construction, there's a number of things going on there that we're active on both project management and engineering. That is work on the East Coast, work in the Arctic.

The opportunities there are going to be manifold over the next few years.

Great. Thanks very much.

Hey, Jay and Christian. You have Matt Filek on for Stephen Sheldon.

Thank you for the questions. On leasing, are you seeing any change in average lease duration on new lease signings?

Just curious if the current macro environment has tenants maybe taking a more cautious approach when it comes to making longer-term lease commitments.

It's an interesting question because I think it's a bit of a bifurcated market. When the leases are in AAA-type properties, the duration seems to be longer.

In suburban properties, it's about the same as it's always been. That's primarily because people are returning to the office, and number one.

Number two, the lease rates in suburban office have fallen so much, it's very attractive for many to take on more space. Everybody is talking about increased spend around technology, and that's helping office occupancy as well.

Those are the kinds of things that we're seeing out there.

Thanks for that color, Jay. Appreciate that.

Then just had a quick one on data centers. I think you've previously mentioned that roughly 10% of AUM in investment management is tied to data centers, and just curious how you see that mix evolving over time, given the obvious tailwinds supporting that asset class, and related to that, if you could provide any additional color on how other parts of the business are benefiting from the data center theme, that would be great.

I don't have the exact numbers, but I do know that we've been in the business for six years. This isn't a Johnny-come-lately situation, and we're looking at a lot of opportunity right now, but we're also looking at the opportunity of selling some strategic assets that we've owned for a while because the prices are significant.

All of those types of things are being factored in. I know everybody's reading about data centers and is there enough computing power, and all of those kinds of things, but our teams at Harrison Street have been deep in this area for a long time, and they're looking at it as they would any other real estate investment.

They believe that if they can deliver some significant returns to their investors because of the market timing right now, it will just help them raise capital for the next fund. That's some additional color for you.

Got it. Yep.

Thank you both. Appreciate the time.

Hi. Good afternoon, gentlemen.

Christian, I was wondering if you don't mind mentioning the organic growth in the engineering space, because I guess, while lapping Englobe, etc., but I'm not sure if you have the number floating around somewhere.

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): Max, the growth was in the mid-single digits, but we don't talk about quarterly growth on a segment basis, as you're probably aware. Nice growth, though, as I mentioned, a mix of organic growth and acquisitions in the engineering space.

Okay. Thanks a lot.

Then do you mind maybe talking about potentially digital investments in the engineering business as obviously, some of the peers are sort of looking to ramp up capability there. Was wondering what you guys are doing internally?

Thanks so much.

Christian Mayer (Global Chief Financial Officer and CEO of Commercial Real Estate Division): Max, I didn't catch the first part of that question if you could repeat it.

Sorry. Just your strategy around digital investments and sort of augmented AI capability when it comes to the design side of the business as generally speaking, the bigger players seem to be moving in that direction.

I'm just wondering what is sort of Colliers' strategy from that perspective? Thank you.

As I mentioned in my comments, we've increased significantly our spend around IT. A significant portion of that is around AI.

The other thing I should say is not only have we increased our expenditures, but we partnered with Google. It's a very deep partnership, and Google brings with it leading cloud capabilities, world-class engineering talent, and also property databases that will help us differentiate ourselves in the marketplace, will help us streamline some of our back-office functions, many of which we've been working on for the past couple of years.

The increased expenditure is in part because we believe that we have to take control of some of the delivery of technology for the first time, perhaps in our history. That's bearing some interesting fruit as we move through this.

That hopefully gives you a little bit of an overview.

That's great color. Thank you so much, Jay.

Thank you, everyone, for joining us on the first quarter conference call. We look forward to speaking to you again at the end of the second.

Thank you.