MMI - Earnings call transcript Q2 2018 | Marcus & Millichap, Inc.

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Operator

Greetings, and welcome to the Marcus & Millichap's Second Quarter 2018 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Evelyn Infurna. Evelyn, please go ahead.

Evelyn Infurna

Thank you. to Millichap's welcome Earnings Quarter and Call. Conference afternoon, Marcus Second & XXXX Good are Chief President Nadji; today us With and Financial Marty and Executive Officer, Louie. Chief Hessam Officer,

remember to questions ability sustain real variations company's contain forward-looking new philosophy conditions; the the and Actual to call its business well, discussed the statements expressions estate XX, Before competitive on economic are March and and filed including as to Words of company's ability and may partnership prepared limited filings, anticipate, commercial expect, culture I implied responses been Exchange has Commission attract with management, intended these public the believe, results forward-looking on statements. turn which could similar forward-looking factors market integrate retain estimate, the those not please and remarks its to to differ that company's XXXX. such and over may, statements. of our ability growth and amid its XX-K, words by and conditions variety retain identify and such due Securities company's the a pressures; but report agents factors, in from materially to goal including, general to transactional annual professionals; other Form to,

will new otherwise. upon Although a update the expectations as company The no assumptions, events attained. information, it reasonable forward-looking based forward-looking make believes future or in can assurance result any are reflected whether obligation the its be expectations company statements statement, no that of such to undertakes

appropriate measures. was release earnings measures company on afternoon non-GAAP and of the the believes In is issued information available website, such to conference this call explanations addition, The certain to non-GAAP presented financial investors. the which reconciliations financial and presents the are this company's on GAAP measures and why presentation, useful call earnings company's of represents

during the on over now is presentation website, the remarks. of Hessam. webcast. my it Investor call a prepared our The is call reference available this turn webcast www.marcusmillichap.com being conference that, along may the to Relations With Finally, slide link to with section pleasure you is

Hessam Nadji

of much and real neutral, how and investments dedication as work new symposiums in and latest helped On the for and rate. includes These growth and expanded XX execute client Second reflect metrics years indicators hand, the of the heels market the segments, in are Coming all conditions Earnings to investor reform and initiatives and Both tax and estate. very lower all force we successfully Millichap quarter Evelyn. year-over-year have tax the outreach for to year investor's a performance our quarter, of with report these Marcus attributed again regarding and clients. commercial posted second been Quarter give on by We uncertainty XX current our strategize, tax have client improved and local year's result law economy completed past to good you professionals Call. revenue our have an over color, local thank hard teams and in positive once increase outreach you, behalf view the improvement & expanded adjusted hallmarks our the the net results in afternoon, last XX.X% joining with I'm team, the To in XXXX first sentiment. a Millichap our continued We additional webcast, you & topic client Thank offshore one strong economic on happy market for entire some Marcus faded earnings, for special the increased our a acquisition of rise are in campaigns. investor the that investor XX.X% in sales market outreach, platform. marketing grew Financial. Pinnacle our

sales. mid-market ongoing these nearly as our for XX% seeing of in half new our in volume with last larger in and over estimated Private remained hand, larger segments transactions last is these brokerage of and Taking significant first transactions overall worthy of other of sales ease aligned year. the volume among interest growth Clients, during Private growth backdrop, improvement commercial quarter from tightly market geopolitical an grew games quarter, property rising a and diversification activity. some of reflected RCA. no year increase We're and seeing the consistently the a category. the respectively spread, closer the to marketplace rate gains with bid-ask look X% and in On of transactions the This sales believe behind we're at business, sales temper for Private a X% XX%, in to hospitality, by our of fall XX% grew In function and in that multifamily, on the accounting our this increase as a transactions and share year-over-year Client Clients, is improvement the contrast the sales in office additional we which year. segments initiatives. one round X% XX% of declines in This well our marked increase in in point MMI. Sales as this industrial in XX% this is our cornerstone factors

point encouraged our variability demonstrate our that by brokerage or Institutional as have in said, is we these segments, best why continued which we contributing to IPA long-term a on referenced long-term recent out the institutional before. Property also it strong out in is to our Advisers, we're that results. growth business in growth our pointed higher This With believe me While numbers transactions, to larger the let view is basis.

many business incremental moving of price of and tenured been our are importantly, has our retention the in IPA brokers and clients the More growth that countless upstream of point.

and die-deals quarter, marketing including the timelines for metrics were internal stable. key Our

of in a primary revenue recent financing XX% The MMCC, Pinnacle second factor introduced Our increase acquisition activity as we was well as Financial. ReadyCap and PGIM quarter from posted our business, earlier year-over-year. contributions refinancing growth of and programs

executive KeyBanc, property in directly he created financing where training experience producers. of all held generated we've commercial His key I'm advisor many extensive refinancing seen the agency over multiple the an assets Dave the the clients Shillington, investors hold us the and CEO, lending, change current to for the be platforms, with and several among for to CMBS meets refinancing borrowers, past are objectives lending Conduit helps as the including in longer recent In for brings and Bill option months announce greater to And also in of has team transition. hiring rates at XX President of was market the of are XX demand for of Hughes sales in recently, aspects division, choosing Over to MMCC. in bank. this their help MMCC. working creating banking, hiring with senior as positions that he will and growth Dave as flow execute experience environment. for Dave and present versus for pleased years the rising areas that major agency which opportunities rate in Most select an have next the as with ebb our time. months, best experience months, a interest reminder, with lending

leading this for years XX of MMCC. service grateful establishing are in to We built and

sales our added We've focused earlier, and and and the highly hiring. internship inventory importantly, diverse seeing XX with quarter. to and large to experienced current, professionals we're new side. especially comprehensive over technology, hiring as on Turning and improved management, programs, the financing environment, attract most months, We're recruits. local during our training financing leveraging with on the mentorship In of I programs past the unemployment XX the professionals, results mentioned second low success

mentioned growth be market our call, current our because of on variable more I've quarter-to-quarter. employment to the numbers As from force are previous sales conditions, and likely

outlook last real a the markets as the tougher growth second half is investments. pop fundamentals year. loan few overall and healthy, demand is has on gear, against positive trends Yes, limited estate property to the started sales year to expect up I light corporate market into performance offsetting second has generally our remain the volume ticked is More in forces the outlined, Our cycle. a of thanks and new half the still pockets buyer up touched more lack strong a the higher just be economy, law likely of during we I stable. in stable, overleveraging remain overbuilding of Economic to environment, of earlier. and in to recently, results shore generally a to the tax comps spur this for capital In challenging against

organic these and platform team, our talented and value, sharp proprietary We improving Private client share our retaining add will longer-term increase Our we the the valuation. MMI Association of industry. more our clear, and the see long-term firms, long-term with alignment and also and shareholder particularly market our the constantly To supporting on remains targeted laser professionals large is in visibility more to segment. create strategies on strategy market, as we brand, services. to focus gradually continue becoming believe Investor with a growth, fragmented continuing tools the with in target and made additional to increase have including as we complement strives and dialogue and our view acquisitions These share benefits the synergies

our believe to deployment be and favorable acquisitions at capital of this accretive pursuing remains priority such, we a As time. opportunity what window

strengthen continue the We advantage. a more will to which we as results now detail. to I sheet, in Marty? call turn balance over our to discuss view competitive Marty

Martin Louie

in the of and the quarter accounted by to year contributed strong healthy Client grew grew businesses brokerage year-over-year X.X% A second and our a of our sequential commissions, revenue large Revenue prior revenue second year-over-year be estate on Hessam. XX% grew basis, transactions. performance as our middle of for Thanks, million, transaction sales a these results. I'll results discussing $XXX second comparison in as segment detail. the to which quarter an nearly in driven X% by the a Private real to total number in XX% easier million. increase well in greater also Total XX% quarter $XXX driven to

this segment As significant market continues national bedrock Hessam platform be performance growth. with our to the of for mentioned, room

Our results market a by increase XX% combined in with business. large increase were transaction middle XX% our enhanced segment, also our in a

and segments variable, expanded While MMI. coverage ago. of XX% these benefits year diversification market accounted by of the These growth a revenue segments combined for compared to brokerage our more year-to-date be XX% to tend reflects there

for a to we of of MMCC large $XX.X During and excluding refinancing quarter the fees due is unusually transactions, an financing XX% million volume which to X.X% quarter second executed QX X,XXX prior from year the Total our sales increase XX% X%. Revenue slightly billion, year. the the from activity transaction, in $XX.X the record. we new by an in nearly year-over-year quarter, increased be increase to generated prior up over nearly XXXX, quarter, closed for volume would rose primarily a

X.X% growth reported XXXX. along with in large Other quarter $X.X primarily fees as of a higher the QX other to volatile a higher headcount, $XXX more shift comprised fee advisory second to expenses the somewhat also variants million consulting the before, revenue other $X.X to million. in driven increased advisory year-over-year increased experienced for estate mentioned the is which recognized be of Cost which quarter of operating million, compared cost fees, have services $XXX second we SG&A. This been would towards We to brokers, would've year. services in normalized and basis, our nominal. quarter by we was Total and of year-over-year last was individuals. as during real primarily due recruiting financing we referral X.X% from in revenue, On million

by on also was that by commission not tenured reason the of closing trend. year cost improved percent are The impacted services fee The a improvement average unusual quarters typically revenue, should who viewed XX.X%. trend more primary total transactions earlier. closed large referenced be decline the QX that consulting commission of a This splits. this is agents, as by in points as is and last I XXX were of to However, basis for less lower rate

SG&A. to Turning

Over put on while of investments strategic increasing to emphasis past few competitive lot the for our other create years, managing costs. advantages a team, we

additional expense of in $XX.X achieve year. SG&A As remained our able major a compared QX professional associated $XX.X growth which million the development our stock-based to focus. in costs revenue has growth to business being activities higher has to with to SG&A brokers, improved, we've investments mainly and The tied was company. last million public of been in compensation was due fees leveraging, a

compared $XX.X share quarter for We to XX%. $XX.X in increase to $X.XX per are income for million or XXXX, that diluted was net the per share diluted pleased million of report an XXXX second $X.XX of or

EBITDA quarter last revenue basis was margin XX.X% expense rate adjusted to year. our for due XX.X% million growth. period growth to increased quarter, during during the EBITDA by to tax Adjusted $XX.X while XX.X% versus the the Our XXX XX.X% points outpacing increased

as expect We from is direction margin long we variability quarter-to-quarter look positive term. but the

our We and in position share. order brokers take will continue in sales clients continue invest to to the make our best platform for market our in execute are professionals to and sure to

As business such, balance grow spending we second the this and sheet to & expect Millichap year a selective its of the be consistent Marcus positioned to first for half perspective, be level acquisitions. to of continues the pursue well half. with organically From

investments the of healthy, are $XXX levels very and core liquidity ending million. equivalents quarter cash cash approximately cash with Our and

with cyclicality growth including covering balance our strategic reserves as industry consideration a sheet towards of well we As as managed the acquisitions. reminder, liabilities, our initiatives

during quickly with the we benefits business originators Pinnacle acquired integrating & force, Marcus investment team. already sales the for and into second is know, opportunities, to and Financial. loan you surface our mutual Pinnacle Millichap the quarter, Pinnacle As platform starting

items several may like discuss for results impact which have of I'd an Before XXXX. key the balance and our on to closing, highlights,

revenue First, a the and Comparisons were quarters had become growth half first market environment. had flat to we've prior difficult considering preferably quarters in of more four the year's from the of benefited easier year. generally comparisons consecutive and

so to our far and have Secondly, sales our improvements mid-market contributed in XXXX. in larger results significantly

now there long-term these growth quarter-to-quarter. change are Q&A. market for to up trends from expect Operator? variables, more sales the segments, in like can continued the that open we call I'd Although,

Operator

[Operator Germain Instructions] question today Mitchell Our from is first coming JMP from Securities.

now Your line live. is

Mitchell Germain

does to share he with Hessam, run philosophy you're MMCC. with leadership about regards similar that? thinking how how Dave to that new a A wants business

Hessam Nadji

apartments property together in of a ways a both business with diverse most really financing growth. and be of particular apartment our types, in types, as more experience expanded agency for and a in We background of related variety came to of because recently Absolutely. his Dave variety lending property other that can lot

So he a of in that happen. we can making believe excited We vision plug-in lot of skills all a and and to are go nice experiences variety we MMCC there where he very very about. and be that need relationships of bolt-on brings brings a can how our know

Mitchell Germain

look in your and I less Or, up any and about office of of to lodging, terms in know, multifamily or comments, sectors? how you quarter. as results, at seems progressing talked actually the seeing year-to-date it's success your prepared with there? ability you your are happy in percentage think, retail like you things total other diversification the are If capture I there are transactions year-over-year. I whatever storage, challenging Are

Hessam Nadji

and require types or diversification special those let's lot very training No the product very is because we're hospitality. ramp-up, challenge single-tenant multi-tenant and, of different the any in types to a not example than seeing and say, required shopping for even they those strategy specialized of ramp-up property They'll particular retail. shifted apartments especially, office take different or centers, longer for take training, type

even our offer both of the So anything know, had faster. those for process for And core before, it talked good this success our business, is the about more core very to recruiting ways in terms training. plenty even business, at But go and much also, you room If a we've with Mitch, still we've it of looking retail as we're make all initiatives. growth. apartment of of us,

change, may the of from is these really vision same. segments - quarter-to-quarter, So all trends still the but and long-term those expanding

Mitchell Germain

a about that - transact? and X certainty were clarity base customer In and little about - tax should a confident to we've it's the talked Has them now your And previous X I among to had months we're the uncertainty months And it me. had, that still X the more plan additional as you legislation adoption some your for guess to what the year, the more for discussions legislation. of one base resulted that feel customer and looking months in provided means and past they is I or that reform Last legislation. say. past certainly little on

Hessam Nadji

answer yes. impact cloud of large uncertainty macro The is, XXXX. this the throughout experienced positive we has very removal biggest The been ago short a of that year

of cloud removal the confidence really of that Just uncertainty boosted has investor sentiment. and investor

applied In getting them. terms how still a to our and the clients tax tax most on helping are the and be questions topics treatment commonly professionals issues, mechanics basis. technicalities would ruling asked having clarity, are lot A as of of a property-by-property and dozen on their actual of

to continue facilitate continue that. to to hold we We help hold different forums webcasts,

So the been market the process why provisions benefit slow. has these really of from favorable that's the coming into

So class net for formation, a seeing because the demand, more reasons, it's, positive. more buyer performing asset capital that well. is variety of time. trickle a it's We're execution an more interest, or more transactions, benefit actual for only buyer you about we're just a and very this doubt, added without sure, hearing is more more a But obviously, to reforms not tax through the more taking of still

Operator

is next Citibank. coming from Peter from question Christiansen Our

Your now line live. is

Peter Christiansen

compare explain going any bit Marty then wondering, completion on dynamic juniors. I'm more inventories? periods in separately closed quickly, was I deals side, climb look to And little - more. sequential the can if is or maybe it brokerage just - And brokerage the you remarks comp on that that by last on? arguably qualitative think alluded a to deals were wasn't real begin trending? So even how I What And easier to pretty estate even than a more side an against wrap year's if sequential with. with at improvement

Hessam Nadji

question your answer parts. to different in try I'll

product First, client-side. on the

increase also, initiatives, shared our majority internal attribute of our are shared I more out formal examples my vast guidance this things the that the have last We that reaching some core of I somewhere we will we Client's are about in in more webcast particular clients, and up like seeing to activity, with remarks, Private attendees to XX,XXX in needed have reform tax that drawn our you commentary quarter market of think, and I topic. between,

the healthy, the fact really XXXX, beginning numbers driven the out as market the activity we share result itself the our Private increase relatively that and accelerating, The it's you're levels, really headwinds gets see not in to been ongoing it's but went and Client that fact is So by it's a growth as basically the segment have improved of environment actual and that. flat. of

senior newer larger as will a times in larger of agents, there mix higher commission influence. different year So of some of you're working the terms quarter, that mentioned, up a large sometimes was of last in transaction sell a paid quarter-to-quarter, was transactions deal, as had Client an transaction or on with that the across to lot agents, rate to a And Private also assets from on to going Peter, at because out more client that skewing but that have mix, they're much with Marty a come refinance. our have decide teaming working they're some a has or get

that, the was for could a we've to account of revenue. sharing that that and quarter key in agents tend So matured, Marty the cycle given larger that portion again is our a message time change, mix seen as senior more the was

to commission sure in make point trend, necessarily decline we and we a isn't that the the So out. wanted payout long-term

Peter Christiansen

does imply that that seniors tilted are busy? implies skew, juniors towards that But your juniors to more more

Hessam Nadji

data. into read I big would - not quarter's really trend It X any

Peter Christiansen

you've you Client the it's $XX I bit don't should like four public, $X question, And a kept think this increased? know, fair Private you since or that three million maybe years at a Do been have range to range. that's I then still a benchmark million or be perhaps of and theoretical think been

Hessam Nadji

device because were depreciation know the of a planning I of day you us over couple would the we our about price is discussion X, now suspect a that Peter, years having a that X, X market listening the fact ago, you range. past a might X discussions, what $XX just have there environment in of some ago, million $XX million deal price million has the been would've Obviously, years clearly lot and been has to changed. $X in

looking actually the at we're So question. same

in the haven't dice happen of the We is minds any of XX% definitely that, re-benchmarking we The it $XX And under the even their the significant that and the our entrepreneurial way some remember, the the capital slice range, data, that the that is still well. pulled million make private together transactions ownership million, beyond in assets, though, determined million, portion real as is $XX point, particular million partnership above final something million. but on X% family, segments to bought cutoff. the $XX $XX have X% and price individual, the a investor, of estate the to they still $XX up particular,

our to including million. Client just are down and some They $XX to Private base to or million-plus isn't million $XX full-spectrum limited cases. million-plus, $XX million the million $XX So up $X $X playing evaluation, now in

are more rare. those Now

and one started investors" So up but we've base, been holistically at we that ago sophisticated a client grow clients. still the today are we quasi-institutional our base the "mom-and-pop who to look able years very advantage private client the are to with who company of XX with more

of guideline, are. they a really don't define So - price bit little points, they're not but our a customers the who

Operator

is question Wells from coming Fargo. Blaine from next Our Heck

live. now is line Your

Blaine Heck

are Number the bit transaction, business. refinancing? of additional driving of so that one, financing you is that that strong growth fees increase color spurring demand Hessam, refinancing refinance. the two, mentioned mentioned are hoping part some in the you the segment number interest any to is increase rate the then, specific in market more And could a and on we driven that little by get

So it in actually that far to business? go economic before starts to slowdown needs that think a refinance, and of see make less you some do tenure refinancing we to I guess how sense

Hessam Nadji

across remarks is quarter-to-quarter, for a they at this you're even from over with developing time course level don't going borrower there my nearly plus is in wave Yes, see borrowers. risk rate. to maybe in the appreciation, it's another the remember, they going to known particular refinancing really a at clear owners as years. what a those interest a that's as of course, versus would presence that partner do know those And your going change perception versus been no anything. think a asset the the relationships, to is into particular be They mean have the a our normally you is the any onto environment, rate propensity asset, transactions. at cycle. I with time asset, be market the in like our the point that rebuy that their trade, a team while. having their so past for developing favor of But ebb of relationships the become which reified board increase of that client flow And And we get comfortable spends and why time improvements transact. looking among transact flow, reasons or trade trade comfortable to is things of has and always sales their know not Doesn't that of But the and sales lot see with a former for distress And kinds if for higher this could from are of year they out ebb there they about we flow, particular investment where comfortable some and of is direct They a if of where mentioned couple lot from while because also interest market, right important there financing all and and the with the I comfortable what decisions for may is are there but with to we the brokers, They're to to are the cash client. lot of that year-to-year, decide more now, the your that team a are being, in holding your to asset given done MMCC. REFIS financing you've asset all yield. dynamics to and

So the we to and first potential or year, of would more able saw that the But sellers to and if normally as this see, rise of trade will, some be of happen. that the clients half needs more we to you in borrowers in other touching resistance we're refinancings interest shift. rates, because even assets cross-sell

Blaine Heck

larger which And about transaction And the same made the of question, to of up is an How year-over-year. a increased then, was that comp that quite place XXXX, it due quarter bit, the clearly, execution segment? market then second just XX% a on XX% much this segment better up versus that business year-to-date, to you segments cited, earnings the your transaction, has as year full but the release. grow in easier

going that forward? So I segment, of percentage overall transactions think guess, a your about should we how as

Hessam Nadji

the property back then were very in for and question, the us larger was there reduction as strong sales of and in XXXX. pull your first part So XXXX big

of large performance XXXX, against decline, in big So half a benchmarked our percentage pretty component of especially this pretty being year's the increases. first year-over-year is

pretty them has as right. over clients of transactions it's role our the in grow with we and the to are execute trends. From for time, a said want essential XXXX able I've their points. it's big you And with up more move be along long-term in us client, needs. for perspective, growing about to play That So and of price more earlier, to to terms

larger the transactions. we advisors we're investor, market million institutional seeing, from on capital defining million reason, and at experts, a the was for important growth another managing because is upper in long reduce we because really form client $X so the of us which capital But that to $X end of opportunity. doesn't going We're create that property the which strong term in $X that to the investors, to and these what investors to terms being it, grow, our for believe reason all is microcap our focus offers company sources $XX we lot that so a demand of or period. the private only also institutions time, mean for retention institutional million coverage, it real price investment range it's of huge is to And are going over abandon founded is that that be the million, long from it's on very on, convergence bread-and-butter general of of partners It's local partnerships private are basically, fragmented. going of and estate convergence capital, hybrid of grow is and is market the forefront with still a

we're grow another. the So cost one trying at not to really area in of

having have a of in good We the market opportunity tremendous price segments. all fortune

Blaine Heck

So of is target percentage a as that no of deals sort far as to a segment? each guess fair Is it? be way formal want at I look to at that there from you

Hessam Nadji

a over of we more stay as to fair client a which natural think that's and long to it, to be transactions, hope sure, retention, for clients, in kind term. are Yes, target, want kind of part see - larger we and as force, some that with way the of mature imposes look the term sales in long maturing where they formal and way company the at continually more doing some limitations, I of because our a growth

Operator

question next coming Joshua William Our Instructions] Blair. [Operator from today is from Lamers

line Your is live. now

Joshua Lamers

property multi-family your types, First, I get retail. your comments on to just both X and and trends want larger

retail and net of those the has then what X.X for side, or calm whether that years, year-over-year maybe property on of and also we not the X perspective investor saw the kind Just the year, last on down completions, kind types? turmoil absorption

Hessam Nadji

Sure.

vast market. the it apartments, type continue see commonly there as rental bifurcation we of because new In us. first, C the workforce the virtually a apartment B United which that important States we in is majority that to and of of apartments stock Class is property referred supply conduct. the address for And housing, business no me is Let to big, vast in majority the and an

really compressing hold healthy is fully bell been because part solid curve at time. So point of properties growing, stable of A again, are from with the in to that the almost buyers, not has very performing opting lot still this growth. large onto lot trading occupied activity a the demand demand or yields particular and but well, sellers of very

and apartment part all a few rates, some increase in has concessions concentrated mainly some or of units that are the have there product, scale vacancies, the upper been cap in the equation, the institutional XXX,XXX new metros larger rental high-end, that been On of so because some marketplace. in side in movement built, even

between XX% has even of XX% fact, overbuilding. the product some is whole pocket being there concentrated in if in been new of apartments, overbuilding, XX%, you the of almost But developed in there at to So metros. look industry, apartment concern somewhere there, has been XX

an So if some those seeing of XX we anything an shortage. still new definitely overhang as are supply. industry, a But of metros have housing

the whole within a the slowed expectation, is buyer demand in sector, down. velocity buyer, There, strong. very It's the fundamentals bid-ask the kind issue So with of healthy is spread seller just environment.

from very comes at credit and the within community the retail, and it the more correction. type the least to price spread the performing of to quality further centers still side, the center, category, location when center gets, much single in out neighborhood and larger versus important the you older standard retail differently tenant a single go at the bifurcate, shopping again, the the job is high notes. and On And which very than where, tenant, multi-tenant center, shopping bigger population least, because retail, especially centers center bid-ask smaller is even demand

playing are on retail ripple retail different not they're concerns generalize So differently retail. playing I the would the but And effect of the performance. in the very all out, types out of still

to side, we're seeing on of suburban in retail activity our more in the so activity any side market business, other extent definitely in slow-down in some us, and of multi-tenant a shopping than the particularly, terms transaction older in both among centers For areas. the

Joshua Lamers

third and comments wondering offices. markets that some capture the newer more then that one last to or is of made your tier from opportunities seeing of moving in I'm as And are or markets? order some sort of in still about tier whether couple as this quarters, expansion cities into broad well tenured over growth second growth maybe opportunities whether the you're And is

Hessam Nadji

up very capturing be growth movement, metros can of a a there would Angeles, South markets our I to many established for - then into amazing we believe, we Dallas, at the put very Los next some the But take the large us, XX the combination the more to And are job years, that you share. Seattle, next over there we'll numbers metros we and of the segment for is both. Denver, and accommodate look market growth going and growth, Manhattan, Florida. can of years others. in over we It's XX like when the sooner have We penetration increase really which, can some long markets. demographic markets in And term put are market sooner to Portland, in-migration, Oregon the think creation even the share. just these like XX there really

in both is been grow going large play today very it's think a we can where of metro to part. a is So which it we combination from and metros of a bigger a we think

Joshua Lamers

to just a because constraints around you're early then earlier just week today beginning traditional that last commercial residential as see maybe the going end brokerage if I'm in me, one some side. there on for the brokerage. company into announced moving be wondering Compass, or the And was to here, the inventory across. residential this of given And they're headline

or as brokerages, been? the pressure there If Re/Max of you're beginning the to more Caldwell the same see environment or a whether residential always it about from bit some is like competitive competitive has traditional

Hessam Nadji

what model sales for the and of is commercial value the industry proposition a to dabbling real it's part is different the it on very the both always side the terms of of And in client. side. residential the the value and does industry. investor individual know the commercial estate the The buy asset, You real platform of been and

it's produce service commission because so But and We're not major on. than the and type of changes structure some the And set It that again, business. a of any of so is business. a of in commodity affecting seeing different competition some of very does way low more up much our a it's a our a lot it did is brokerage. track, type interesting very read of is question, Compass of seriously. have to But pressure and any now I seeing regarding we your we're in take really and technology, the and very, difference. something we done things value-added answer But that the real competitive any venturing not

Operator

like We reached the to further over session. question-and-answer comments. management the closing end I'd at of to back floor for turn any our

Hessam Nadji

to on call Thank call. and quarter, on road look for want you now the everyone thank on And our quarterly and this you, our forward we I participating very you, Thank to seeing Operator. next much.

Operator

concludes Thank teleconference. today's you. That's

thank day. participation You disconnect lines your at you today. may this your We a for have time and wonderful

Marcus & Millichap (MMI) 12 Aug 182018 Q2 Earnings call transcript