Real Estate Execs Share IPO Process and Economic Outlook
The LMU Real Estate Alumni Group (REAG) and Finance Society hosted an informative discussion on the evening of March 25 titled “A CEO's Perspective on Taking His Company Public & Real Estate Investment Opportunities and Current Market Conditions.” John J. Kerin ‘77, President and CEO of Marcus & Millichap Real Estate Investment Services, gave a detailed account of taking his $17 billion firm public with an IPO in the fall of 2013. His colleague, Hessam Nadji, Managing Director, Research and Advisory Services, was also on hand to talk about current real estate investment opportunities and the financial markets, with a particular emphasis on Southern California.
Growth and the IPO Experience
Kerin kicked off the presentation with an overview of Marcus & Millichap, how the firm has grown over the years, and where it is today. He talked about some of his main duties as CEO and factors that he attributes to the firm's growth and success. Some of these factors include hiring talented professionals with similar goals, publishing leading research on the real estate market, and a strong focus on client satisfaction. He provided a detailed overview of how Marcus & Millichap prepared for its recent IPO and the main processes that were involved in taking the company public. Kerin spoke about everything from filing an S-1 with the SEC, traveling to various cities across the country for investor roadshows, and the surreal experience from the floor of the stock exchange on the day of the IPO.
Current Market Conditions
Nadji took over the second half of the presentation and focused primarily on the economic recovery effort post 2008 and where we are today.
- 8 million jobs lost after the 2008 crisis have been fully recovered
- Professional and business services represent the sector with the highest percentage of growth
- Southern California commercial real estate is doing especially well with a boom in office space, retail space and apartment communities
- Los Angeles landed as the number one region for national employment gains, with Orange County following closely behind
Finding Your Career Passion
Listening to Kerin and Nadji speak, you could feel their enthusiasm and passion for real estate come forth. Nadji ended by giving students and young professionals in the audience several tips on finding a career that you love:
- Surround yourself with people you get along with who keep your mind sharp
- Make sure that whatever company you work for has a great story to tell
- Get involved with real estate!