The current consolidation may also threaten Marcus & Millichap’s leadership position in the private client segment.
CBRE and brokerage Colliers International “both have businesses that compete with Marcus, they are just a lot smaller,” William Blair’s Dobell said. “There is a chance that they may look to build those up at some point.”
Political Donations
Marcus & Millichap could respond by acquiring smaller local competitors to bolster its national platform, which was part of their rationale for selling shares to the public, according to Germain.
The low-profile billionaire gave more than $3 million along with his wife to the Democratic party in 2014, making him the eighth-largest donor, according to Politico. In July, Marcus hosted a fundraiser at his home in the Los Altos Hills attended by President Barack Obama.
“For a public person, he is very private,” said Phil Mahoney, who lives near Marcus and is an executive vice president at Santa Clara, California-based broker Newmark Cornish & Carey. “He and his wife Judy are significant philanthropists but they don’t want a lot of fanfare.”