LOS ANGELES—For the residential market as well as commercial real estate, the prospect of Federal Reserve action on interest rates isn't likely to throw a wrench into the works, Marcus & Millichap's Hessam Nadji said on CNBC last week. For one thing, the GlobeSt.com Thought Leader said, any action on the federal funds rate is likely to be “moderate and well-balanced,” whether tying in with inflationary pressures or with job growth.

“I think it's expected that whether it's before the end of 2015 or into 2016, the Fed will begin its normalization of interest rates,” Nadji told interviewers on CNBC's World Exchange. “That's been baked into the market, certainly in the commercial real estate investment market as well as on the consumer side. Ironically, a lot of people that have been on the sidelines will probably begin to jump back into the marketplace once interest rates start to move.”

Investor Carl Icahn recently opined that he sees a bubble forming in the real estate market, yet Nadji said the evidence to date hasn't suggested one, whether in commercial or residential. “The concern is really how much longer interest rates can stay low and whether we should get going with the normalization of the interest rate cycle,” he said.

On the commercial side, yields are still very attractive, “and bringing buyers in who are basically locking in low interest rates, looking at investments from a very good fundamental level, in terms of projected rent growth and projected occupancies,” said Nadji. Meanwhile, lenders are “aggressively back in the market” while maintaining standards on underwriting. “They're not looking at a repeat of 2006 or 2007, when underwriting was very, very poor.”

On the residential side, Nadji suggested that what Icahn sees is to certain markets that have shown “huge price gains” year over year. But accelerated price growth in for-sale housing has slowed down as the US has transitioned from “a distressed environment to a normal marketplace. You're not seeing the kind of bubble patterns you normally see when investors are buying homes to flip them.”

Nadji also offered insights into the overall health of the residential market in the context of the latest Case-Shiller home price indices. For the full video, click here. For all coverage of Marcus & Millichap on GlobeSt.com, including columns and insights from Hessam Nadji, click here.