Blaine Heck's questions to Marcus & Millichap (MMI) leadership • Q2 2025
Question
Blaine Heck of Wells Fargo Securities inquired about the shifting transaction volume trends between private and institutional segments, the reasons for declining commission rates despite higher private client activity, the impact of a recent tax accounting change, and the company's strategy for external growth and capital allocation, including M&A and share repurchases.
Answer
President and CEO Hessam Nadji attributed the private client segment's strength to improved price discovery and financing, calling the institutional slowdown a temporary aberration due to tariff news. He explained that lower commission rates resulted from a mix shift towards deals over $100 million, which carry lower fees. Nadji also confirmed active M&A dialogues with improved seller valuation attitudes. EVP & CFO Steve DeGenero clarified the tax methodology change normalizes reporting and affirmed a balanced capital allocation strategy, continuing dividends and share repurchases while preserving capital for acquisitions.