Marcus & Millichap, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

2.	Property and Equipment

Property and equipment, net consist of the following (in thousands):


	March 31, 2016			December 31, 2015
Computer software and hardware equipment	$	11,342		$	10,973
Furniture, fixtures, and equipment		17,682			17,047
Less: accumulated depreciation and amortization		(16,578	)		(16,441	)

	$	12,446		$	11,579

During the three months ended March 31, 2016 and 2015, the Company wrote off approximately $1.0 million and $1.1 million, respectively, of fully depreciated computer software and hardware and furniture, fixtures and equipment.

The Company leases all of its facilities under operating lease agreements. Lease agreements may contain periods of free rent or reduced rent or contain predetermined fixed increases in the minimum rent. The Company recognizes the minimum lease payments as rent expense on a straight-line basis over the noncancellable term of the lease. The Company records the difference between the amount charged to rent expense and the rent paid as a deferred rent obligation. The Company typically leases general purpose built-out office space, which reverts to the lessor upon termination of the lease. Any payments for improvements, net of incentives received, are recorded as prepaid rent. Prepaid rent is amortized using the straight-line method over the expected lease term as a charge to rent expense.