Marcus & Millichap Plans AI Tool Rollout with Incremental Spending Increase
Marcus & Millichap (MMI) reported a solid third quarter despite facing significant headwinds from rising interest rates. The company noted that higher rates have widened bid-ask spreads and placed downward pressure on inventory valuations, creating a challenging environment for commercial real estate transactions. To drive future efficiency, the firm plans to implement AI-enabled tools over the next 18 to 24 months. This strategic rollout is expected to require an incremental spend of approximately 1% to 2% of revenue, as the company seeks to leverage technology to navigate current market volatility.
Tickers: $MMI
Topics: earnings report interest rates real estate market valuation pressure