Strategic Growth & Financial Overview
Newmark's Large Multifamily Capital Markets Business is
Benefitting from Secular Tailwinds
MF sector boasts long-term
secular tailwinds
Decades of low multifamily
construction¹
Increased costs for
materials and labor
Higher single-family home
prices and residential
mortgage rates
Multifamily is Largest Portion of Our Transactional Businesses.
Over 50% of Newmark's investment sales and total debt volumes in
2021 and the TTM
29% of Newmark's total revenues in 2021
Significant Source of Recurring Revenues and Earnings
$71B servicing portfolio generated $199 million (TTM) 2 of higher
margin recurring revenues; consistent and predictable under a variety
of economic and market conditions³
Continuing Strong Share Gains 2
Increased multifamily investment sales by 30% CAGR from 2017 to
TTM, vs. 24% for the industry
Increased total multifamily debt volumes by 32% CAGR from 2017 to
TTM, vs. 10% for the industry
1. In July of 2022, a report published by the National Multifamily Housing Council and the National Apartment Association said that the U.S. needs 4.3 million new apartments over the next 13 years just to meet projected
demand. As of July 15, 2021, the U.S. was short by ~2.4 million multifamily units per "Housing is Critical Infrastructure: Social and Economic Benefits of Building More Housing", prepared by Rosen Consulting Group
for the National Association of REALTORS®".
2. TTM = the twelve months ended June 30, 2022. Industry U.S. multifamily investment sales notional volumes are from MSCI Real Capital Analytics ("RCA"). Overall industry U.S. multifamily debt originations are based
on the Mortgage Bankers Association ("MBA"), all as of August 20, 2022. The latter is based on the average of the four quarterly values for the "Commercial/Multifamily Mortgage Bankers Originations Index" over the
respective twelve-month periods.
3. Portfolio size is as of June 30, 2022. Revenue figure is for servicing fees, interest income on loans held for sale, escrow interest, and yield maintenance fees. For additional information on historical GSE/FHA loan
servicing performance, see the May 17, 2020 "COVID-19 Supplement" presentation on our investor relations website.
NEWMARK 19View entire presentation