LOS ANGELES—More than 650 attendees convened in Los Angeles on Monday morning for the GlobeSt. Multifamily Fall Conference, eager to gain insights and forecasts from the opening keynote speaker, Hessam Nadji, the President and CEO of Marcus & Millichap. Nadji kicked off the event by emphasizing that "The market is open and active," which he says marks a crucial distinction from the circumstances of 2008 and 2009.

He began his address by acknowledging what he referred to as the "declaration of war" made by the Federal Reserve. He questioned the necessity of inflicting pain, explaining that it primarily arose from missing the opportunity to alleviate financial conditions following the pandemic. Nadji noted that once that opportunity is missed, drastic measures become unavoidable, and the ongoing process reflects this. "It didn't need to unfold this way but while it was a declaration of war, it isn't a foreteller of doom."

Addressing the current situation, he remarked, "Here we are, having to grapple with this issue." He traced the origins of the problem back to the liquidity surge, which escalated in 2020 when decisive actions were taken, pumping stimulus into the economy. The substantial increase in liquidity became apparent, setting the stage for future challenges.