Weekly Real Estate News
Marcus & Millichap posted $208.4 million in third-quarter revenue as commercial property sales activity improved, but the brokerage remained unprofitable at the operating level even as it reported positive net income.
The California-based commercial real estate services company said revenue increased 7.5% from $193.9 million a year earlier. Net income reached $1 million, or three cents per diluted share, compared with approximately $240,000, or one cent per share, in the third quarter of 2025. The figures were disclosed in the company’s November 6 earnings release furnished to the Securities and Exchange Commission.
Larger deals drove the growth
Brokerage commissions increased 7.4% to $174.1 million. The middle-market and larger-transaction business was the standout, with revenue up 18.1% to $62 million. Revenue from smaller private-client transactions rose 3.6% to $106 million. Financing fees increased 2.6% to $27 million.
Underlying brokerage sales volume grew 12.6%, but the average commission rate declined from 1.94% to 1.85%. That combination shows the company benefited from higher transaction dollar volume while earning a smaller commission percentage on average.
Across all activities, Marcus & Millichap reported approximately $13.8 billion in sales volume from 2,316 transactions during the quarter, including investment sales, financing, leasing and advisory transactions. Investment sales alone accounted for approximately $9.4 billion across 1,584 transactions.
A profit, but not yet an operating turnaround
Marcus & Millichap reported $209.3 million in operating expenses against $208.4 million in revenue, producing an operating loss of roughly $906,000. Other income helped the company reach $2.6 million in pretax income and $1 million in net income. It would therefore be misleading to describe the quarter as a return to operating profitability.
Cost of services increased to 64% of revenue, from 62.4% a year earlier, in part because higher-producing investment sales and financing professionals earned larger commissions. Adjusted EBITDA, a non-GAAP measure, increased to $8.2 million from $6.9 million.
For the first nine months of 2026, revenue increased 14% to $582.8 million. The company reported $1.8 million in net income, compared with a $15.2 million loss during the same period in 2025. Nine-month adjusted EBITDA improved to $23.3 million from a loss of about $400,000.
Higher borrowing costs still restrain transactions
Chief Executive Officer Hessam Nadji said the increase in the 10-year Treasury yield during the quarter widened the gap between what sellers want and buyers are prepared to pay. He said the company’s growth in larger transactions helped offset slower gains in the private-client segment.
Management expects more properties to come to market as loans mature and owners can no longer postpone decisions, but cautioned that rate volatility and valuation disagreements may continue to restrain transaction activity through the rest of 2026. That is a management forecast, not a verified market-wide recovery.
The company’s results suggest commercial investment sales are improving unevenly: higher-value transactions are providing much of the growth, while commission pressure and operating costs continue to constrain margins. For brokers, lenders and property owners, the next test is whether transaction volume can strengthen without relying on larger deal sizes alone.
The earnings release is dated November 6, 2026, and covers the quarter ended September 30. The SEC filing was accepted November 5 at 9:28:42 p.m. Eastern. The company cautioned that its financial results are preliminary until it files its Form 10-Q.
Source: Marcus & Millichap third-quarter 2026 earnings release, Exhibit 99.1. Featured photograph is an illustrative cityscape, not an identified company property; George Kedenburg III/Unsplash.
Simple Content Summary
Marcus & Millichap reported $208.4 million in third-quarter revenue, up 7.5%, and approximately $1 million in net income. Larger commercial property transactions drove much of the growth, but the company still reported an operating loss. Management expects maturing loans to spur more sales while warning that interest-rate volatility remains an obstacle.
