Business Principles of Marcus & Millichap Company

Business Principles

Every Marcus & Millichap portfolio company has its own leadership, vision, culture and business plan. However, the very formation, operation and growth of our businesses are based on a distinct collection of business principles that permeate our entire organization. These principles were crafted to create a balance between our entrepreneurial drive and institutional-quality discipline. They are applied to the broad business models of each company all the way to underwriting specific transactions.


Each Marcus & Millichap company specializes in a specific segment of the real estate business. This targeted focus on a particular aspect of the business inherently creates a deep level of knowledge, expertise and relationships that serve as a major competitive advantage. Our commitment to this business principle has continually strengthened each of our brands by avoiding distraction, dilution of effort and loss of focus.

Independent, Institutional Quality Research

To convert information into strategy, Marcus & Millichap Company operates with an in-house, proprietary research department chartered to provide macro and micro-analysis and forecasting. Our research proactively measures leading indicators and supports our market prioritization and proactive risk assessment. We employ our research as a core component of investment and development underwriting without the influence of acquisition and development teams. This is a function of our self-imposed discipline to underwrite business decisions and transactions objectively.

Market Focus

Our companies are highly concentrated in specific geographic markets to further enhance their level of expertise and relationships that differentiate them. Our investment and development companies operate in select markets with natural and business barriers to entry to avoid the volatility of commodity markets.

Fact–Based Decision Making

Our entire decision-making process, ranging from evaluating an initial business concept to market selection and project execution, is driven by facts rather than ungrounded projections. As a result, on-the-ground, real-time information gathering and validation have long been core components of our business planning and operations and have mitigated the risk of market fluctuations. We have a full complement of outside advisors representing a breadth of expertise who we meet with regularly.

Compelling Value

All of our business models and transaction decisions are put through a strenuous test of compelling value. The mandate of this business principle is that our real estate products and services must deliver a compelling value beyond that of any competitor. This applies to the consumers of our products, communities in which we develop and invest, and financial partners. The test of compelling value goes well beyond pricing of products and services to include a rigorous test of value-added results and benefits that should be produced by our companies. It is the ultimate measurement of differentiation.

Parameters, Systems and Processes

Long before the mass adaptation of technology, Marcus & Millichap was pioneering applications that streamlined business operations, information sharing and decision making. More important than the technological aspect is the discipline that has emerged from our systems orientation. From our underwriting parameters by product and market, to our project approval process through committee, checks and balances limit our risk and make our companies nimble to capitalize on opportunities.

Equal Capital Treatment

Prudent underwriting, risk assessment and pursuit of opportunities not only apply to our capital deployment, but the same level of accountability and care is applied to our partners' investments. Our partners' capital deployment goes beyond specific transactions and is a reflection of their confidence in us. We have long believed that long-term term relationships with capital partners is an essential part of our competitive advantage and have taken great care to safeguard our partners' capital and trust.

Long–Term, Sustainable Growth

Marcus & Millichap companies are founded with the mission of becoming a leader within a specific segment of the real estate business. Contrary to common industry tendencies, our companies are not defined by reacting to short-term cyclical trends and/or unsustainable market flurry. Each business model is highly specialized with a charter of focusing exclusively on business opportunities and activities within its core expertise. Our companies operate within select geographic markets and submarkets that support sustainable, long-term growth and minimize cyclical risks.