Howard Lutnick Steps Down from Newmark Group, Confirmed as 41st U.S. Secretary of Commerce

In a significant announcement, Newmark Group, Inc. (Nasdaq: NMRK), a prominent player in the commercial real estate sector, has revealed that Howard W. Lutnick, the Executive Chairman, has been confirmed by the United States Senate as the 41st Secretary of Commerce. This development marks a pivotal transition for both Lutnick and Newmark, as he steps down from his roles on the Board and as an executive officer of the Company.

Howard Lutnick's leadership has been a driving force behind the remarkable growth of Newmark since its acquisition by BGC Partners in 2011 for approximately $100 million. Under his stewardship, the Company’s revenues surged from $230 million to nearly $2.8 billion, leading to a current market capitalization of $3.7 billion. Lutnick’s tenure saw more than 55 acquisitions and the recruitment of some of the industry's top talent, solidifying Newmark's reputation as a global leader in commercial real estate services.

Jay Itzkowitz, a Board Member, praised Lutnick’s unique ability to identify market opportunities amid uncertainty, stating, “His instinctual, forward-thinking approach and market expertise have been instrumental in transforming Newmark into a global leader and has set a strong foundation for its continued success.”

Lutnick’s career has been characterized by resilience and innovation. He joined Cantor Fitzgerald in 1983, quickly rising through the ranks to become President and CEO in 1991, and later Chairman. His leadership was tested during the tragic events of September 11, 2001, when Cantor Fitzgerald lost a significant portion of its staff. In response, Lutnick established the Cantor Fitzgerald Relief Fund, which raised over $180 million for the families of those lost in the attacks.

Not only did he rebuild Cantor Fitzgerald, but he also saw an opportunity in the commercial real estate sector, leading to the acquisition of Newmark & Company Real Estate, Inc. in 2011. His strategic vision culminated in taking Newmark public in 2017, further expanding its footprint in the industry.

Barry Gosin, Chief Executive Officer of Newmark, expressed gratitude for Lutnick's contributions, noting, “In a highly competitive sector, Howard has helped Newmark make bold and decisive decisions that have catapulted our Company's growth.” He added that Lutnick’s expertise would be invaluable to the American people in his new role as Secretary of Commerce.

As part of his transition to the government, Lutnick has agreed to divest his interests in Newmark in compliance with U.S. government ethics rules, indicating he does not expect any arrangement involving the sale of shares on the open market.

Alongside Lutnick's departure, Newmark also announced further executive and board changes, signaling a new chapter for the Company. Stakeholders are encouraged to visit the Newmark investor relations website for updates on these developments.

Howard Lutnick’s confirmation as Secretary of Commerce is not just a milestone in his career but also a significant moment for Newmark Group, Inc. As the Company prepares for this leadership transition, it stands poised to continue its trajectory of success in the commercial real estate sector. With a foundation built on innovation and strategic growth, Newmark aims to navigate the future under new leadership while retaining the vision that Lutnick instilled.