Marcus & Millichap (MMI) Investor presentation summary

Company overview and market position

• Largest CRE investment brokerage in North America, specializing in brokerage, financing, research, and advisory services.

• Serves both private and institutional investors with 1,800 professionals in 80 offices.

• Market leader in the private client segment ($1M–$10M), which accounts for 80–85% of all CRE sales.

• Institutional division (IPA) is a leading broker for $20M+ transactions.

• Growth strategy focuses on share gains in private client and institutional markets, scaling financing, and expanding business lines.

Retail real estate market trends

• Retail real estate has rebounded, with strong post-pandemic demand and core retail sales reaching $564B in 2024.

• E-commerce growth outpaces brick-and-mortar in rate but not in absolute spending; brick-and-mortar still dominates total retail sales.

• Retail construction has significantly declined, helping keep vacancy rates low and supporting recovery.

• Vacancy rates across retail sub-types have converged, indicating a potential space shortage.

Shifts in consumer behavior and retail formats

• Consumer preferences are shifting toward value, experiential shopping, and health/fitness, with off-price and restaurants/bars seeing the highest 20-year sales growth.

• Spending at bars and restaurants has exceeded grocery stores since 2015, with the gap widening.

• Foot traffic in experiential retail categories has surged post-pandemic, a trend expected to continue.

• Leading retailers use stores as fulfillment hubs, with up to 80% of digital sales fulfilled from physical locations.