Marcus & Millichap reports record-high quarterly revenue, earnings

Recovery aided by resurrected deals placed on hold during the pandemic

National /
Aug.August 06, 2021 03:57 PM
Marcus & Millichap reports record-high quarterly revenue, earnings

Marcus & Millichap CEO Hessam Nadji (Marcus & Millichap)

Marcus & Millichap made a V-shaped recovery a reality in the second quarter.

The commercial brokerage giant achieved the highest quarterly revenue and earnings in the company’s 50 year history, president and CEO Hessam Nadji told analysts during a second-quarter earnings call Friday.

The firm closed nearly 3,300 transactions in the recent quarter, more than doubling the transactions closed in the same period last year, and up nearly 30 percent from the second quarter of 2019, Nadji said.

“We take great pride in these results, especially relative to the pre-pandemic market environment,” he said.

Revenue from real estate brokerage commissions — the vast majority of the firm’s revenues — was $253 million, more than twice the amount recorded in the same period last year, and up 34 percent from the second quarter of 2019. Total revenues were $285 million, with a net income of $31.5 million, which is up 143 percent year-over-year and up 48 percent from 2019.

The recovery was aided by the revival of transactions and listings that were canceled or delayed during the pandemic. As the economy reopened in recent months, those deals were resurrected and came to fruition in the second quarter, Nadji said

“Perhaps the most important internal factor is the productivity and client relationships of our tenured agents and loan originators,” he said. “The focus on long-term relationships has always driven our business, but clearly stood out over the past year.”

The company’s strategic acquisitions and talent recruitment also contributed to the results, Nadji added. Last fall, Marcus & Millichap acquired New York-based debt and equity brokerage Mission Capital Advisors.

Overall market conditions, such as low interest rates, as well as a widely held view that real estate can act as an inflation hedge, also helped fuel capital market activities, according to chief financial officer Steve DeGennaro.

“In recent months, more investors have cited uncertainty related to future tax law changes as one of the motivations to trade, which has added some incremental urgency into the marketplace,” he said.

In New York City alone, some 454 investment sales transactions were completed from April to June, adding up to $5.3 billion. The dollar volume nearly tripled the first-quarter total, according to Ariel Property Advisors’ quarterly investment sales report, though it still fell far short of the quarterly figures seen before the pandemic.





    Related Articles

    arrow_forward_ios
    Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Here’s what the $10M-$30M NYC investment sales market looked like last week
    Chinese developer willing to sell Manhattan supertall site at big loss
    Chinese developer willing to sell Manhattan supertall site at big loss
    Chinese developer willing to sell Manhattan supertall site at big loss
    79 Clifton Place, 80-01 37th Avenue, 45 East Mosholu Parkway North (LoopNet, Google Maps)
    Residential dealmakers storm city’s investment sales market
    Residential dealmakers storm city’s investment sales market
    HUBB’s John McCarthy and with 510 East 88th Street and 181-199 Columbus Avenue (Google Maps)
    HUBB NYC doubles down on Manhattan apartments
    HUBB NYC doubles down on Manhattan apartments
    Scale’s $48M loan kicks off first phase of New Rochelle project
    Scale’s $48M loan kicks off first phase of New Rochelle project
    Scale’s $48M loan kicks off first phase of New Rochelle project
    Tishman Speyer’s Rob Speyer and The Jacx (Getty, The Jacx)
    Tishman’s $425M LIC refi leads busy month for outer-borough loans
    Tishman’s $425M LIC refi leads busy month for outer-borough loans
    HAP Investments CEO Eran Polack and 215-225 West 28th Street (HAP)
    HAP sells stake in Chelsea apartments in deal valuing project at over $500M
    HAP sells stake in Chelsea apartments in deal valuing project at over $500M
    Reuben Bros. bag pair of Madison Avenue retail properties
    Reubens Bros.’ Madison Ave shopping spree tops mid-market deals
    Reubens Bros.’ Madison Ave shopping spree tops mid-market deals
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...