SAN FRANCISCO—The run that REITs have enjoyed thus far in 2014 will continue through the rest of the year, Marcus & Millichap's Hessam Nadji said recently. Chief strategy officer at MMI, the GlobeSt.com Thought Leader was interviewed August 29 on a “Halftime Report” segment of CNBC's Fast Money.

Asked whether he saw a bubble forming among apartment REITs, Nadji said that isn't the case. Given the current supply/demand dynamics, “we're seeing it on the ground,” he said. “There are three million young adults living with family above and beyond five years ago,” an indicator of pent-up demand.

With 2.5 million to 2.7 million jobs being created nationally per year, “we're seeing these people come out to the marketplace, and household formation is favoring rentals.” And since would-home homeowners still find it challenging to qualify for home loans, “the for-sale housing market is recovering without the first-time homebuyer, for the most part.”

Looking at REITs' returns and their performance in the public markets, Nadji observed that “cyclical stocks” were punished the most during the recession and are worth the most in the recovery Stock prices on hospitality, apartment, self-storage and other REIT sectors are up by well into the triple-digit range. In the near term, Nadji said, “Office really stands out as a laggard that should begin to outperform.”

Nadji also discussed interest rates and dynamics influential to future commercial real estate performance across property types For the full video, click here. For all coverage of Marcus & Millichap on GlobeSt.com, including columns and insights from Hessam Nadji, click here.