# Marcus & Millichap Estimates Strategic Spend at 1% to 2% of Revenue

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/51796
Published: 2026-11-08T20:35:05.000Z
Updated: 2026-11-08T20:35:05.000Z
Section: Business

> AI-enabled tools and enterprise system upgrades are planned within 12 to 18 months. The broader estimate includes technology work and strategic hires over the next 18 to 24 months.

Marcus & Millichap expects broader strategic initiatives to require incremental spending equal to 1% to 2% of revenue over the next 18 to 24 months, including technology development and senior hiring.

President and CEO Hessam Nadji outlined plans for AI-enabled tools and enterprise system upgrades during the company’s third-quarter earnings call Friday, Nov. 6. CFO Steve DeGennaro said the spending estimate covers technology development and strategic hires, including senior positions in leasing, retail and auction.

The technology work includes a new human resources information system (HRIS) and a new enterprise resource planning (ERP) system, along with upgrades to analytics, reporting and security applications. Nadji said the AI tools and system upgrades are planned within the next 12 to 18 months.

The company did not provide a dollar budget, say whether the percentage is annualized or break down the estimate among AI, other technology projects and hiring.

Marcus & Millichap reported third-quarter 2026 revenue of $208.4 million, up 7.5% from a year earlier. Net income was $1 million, or $0.03 per diluted share, compared with $0.2 million, or $0.01 per diluted share, in the year-earlier quarter.