Marcus & Millichap, Inc. reported a total revenue of $696.1 million for the fiscal year ending December 31, 2024, marking a 7.8% increase from $645.9 million in 2023. The growth was primarily driven by a rise in real estate brokerage commissions, which accounted for approximately 84.7% of total revenue, amounting to $589.7 million, up from $559.8 million in the previous year. Financing fees also saw a significant increase of 26.3%, reaching $84.5 million compared to $66.9 million in 2023. Other revenue sources contributed $21.9 million, up from $19.3 million, reflecting a 13.4% increase.
Despite the revenue growth, the company experienced an operating loss of $32.9 million, an improvement from the $59.4 million loss reported in 2023. This was attributed to a rise in operating expenses, which totaled $729.0 million, up from $705.3 million in the prior year. The cost of services increased by 6.1% to $431.5 million, driven by higher commission expenses linked to increased revenue. Selling, general, and administrative expenses decreased slightly by 1.4% to $280.9 million, indicating a focus on cost management.
In terms of operational metrics, Marcus & Millichap closed 7,836 transactions in 2024, with a total sales volume of approximately $49.6 billion, compared to 7,546 transactions and $43.6 billion in sales volume in 2023. The company employed 1,712 investment sales and financing professionals as of December 31, 2024, a decrease of 4% from the previous year, reflecting a strategic decision to streamline operations by reducing unproductive personnel. The firm also reported an average commission per transaction of $108,261, down from $102,238 in 2023, indicating a shift in transaction mix towards lower commission markets.
Looking ahead, Marcus & Millichap expressed cautious optimism regarding the commercial real estate market, citing potential improvements in investor sentiment and transaction activity as economic conditions stabilize. The company noted that the Federal Reserve's recent interest rate cuts could positively influence market dynamics, although uncertainties surrounding federal policies and economic conditions remain. The firm plans to continue pursuing growth opportunities through strategic acquisitions and expanding its market presence, particularly in regions with favorable economic indicators.
About Marcus & Millichap, Inc.
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