Career Path in Commercial Real Estate
Specializing: Starting a Career in Commercial Real Estate
There are several different areas of specialization in commercial real estate. This list is should help identify some areas of interest but it is not all-inclusive.
- Brokerage
(mortgage and leasing) - Real
Estate Development - Corporate Real Estate
- Institutional
Real Estate Investment
Commercial Real Estate Brokerage
Brokers often conduct business on behalf of a firm and they represent a buyer or seller in a transaction. Commercial real estate brokers earn a majority of their compensation via commissions. They can conduct business with corporations, institutional buyers and sellers, foreign and domestic business, as well as various other investment entities. A commercial broker will usually focus on a single type of property such as industrial, retail, office, lodging, or apartments. Brokerage is a client facing business that requires good people skills. . Last Night on Mad Men, Roger Sterling used a connection at the airport to "happen to bump into" a potential client. He talked to the guy, became fast friends, and got Sterling Cooper Draper Pryce into the pitch at the last minute by cultivating current relationships and forming new ones. Not too far off from Sterling's world of 1960's advertising account executives, Commercial Real Estate brokerage is a career based entirely on relationships. Unlike banking, as a broker, your personality and people skills matter immediately. You aren't going to be spending a solid handful of years toiling behind the scenes and having an intimate relationship with Excel before you become client-facing. Almost immediately you'll be on the phone, pounding the pavement, knocking on doors, emailing everyone, networking at formal and informal events, and your relationship with other brokers in your market, both within your company and outside of it, is just as important as your relationships with clients. If your personality sucks, so will your bank account (at least at first). There are multiple different “levels” of real estate development. However, we’ll take a look at two of the more popular levels, the entrepreneurial (i.e., starting your own firm and managing your own projects) and the established fund (i.e., joining the ranks at Hines, Tishman, or another established firm). The following is a high-level overview of the business conducted by a real estate development entrepreneur. Once a firm has been established, the land will be acquired and prepared for development or a site will be purchased. The developer will then oversee the construction process. Commercial developers will usually have a specialization which is determined by the property size and type.
Here’s an excerpt from Real Estate Development
thats a pretty broad question. there alots of things you can do in commerical real estate. you could finance real estate projects either trhough equity or debt, you could do asset management, property mamangement, new development, redevelopment, brokerage services, bank lending, mortgage brokerage etc etc. asking about the career paths in cre is like asking about the career paths in finance. your going to be more specicfic or have a specific career path in mind within the industry.
hold on a sec, i will post a link that will help a n00b like you.
http://www.wallstreetoasis.com/forums/real-estate-investing-companies
refer to post 6
As previously mentioned, this is an extremely difficult question to answer without first providing more extensive details on your background and career/personal goals. CRE can be an incredibly profitable field, but like anything else, maximum income and an ideal home life tend to be mutually exclusive. I'm currently working as a financial analyst on the acquisitions team of one of the world's largest real estate private equity firms. Compensation (at the pre-mba level) is comparable to any BB investment bank in NY, and grows exponentially with every year you log with the firm. Hours vary but usually my day starts at 8 am and ends around 7 pm, though it's not rare to be in till 9 or later. As I am single, this schedule allows for ample after-work socializing and considering that analysts are the last people to go home, it strikes a decent work/life balance.
Unlike other fields, real estate tends to be a really inclusive environment, comprised mainly of people who've spent their entire lives in real estate. I come from a pure CRE background as my internships included real estate investment banking, asset management and CRE development. Most of the analysts I work with have similar backgrounds.
Commercial brokerage is a double edged sword, when the market is roaring you can make a killing, but when it swings in the opposite direction, it can be a bitch. Brokerage is also a numbers game, it's about putting yourself out there and making as many contacts as possible. I know a handful of brokers that make well over 7 figures a year, but for each of those rainmakers, there's 100 guys struggling to make $30K a year. With the exception of large scale private equity and development firms, CRE is a local game. I suggest you contact local brokers and developers and set-up information sessions if you want to learn more about what they do. It'll be a great jumping-off point and might lead you in the right direction come recruiting season. Hope this helps!
CRE career path advice to PE analyst (Originally Posted: 06/30/2015)
Hi, currently I am a research analyst for a commercial real estate analytics company (real capital analytics, reis inc, costar etc.) I am also finishing up my Certificate in Real Estate Finance and Investment at NYU. Eventually, I would like to be an analyst/ in acquisitions on the buy side at a PE firm and I am looking for some advice on how to get there.
Would becoming an analyst on the debt side whether its at places like HHF or banks/lenders be a good direction to go? Would i get pigeon held on the debt side? Or should i just look at analyst positions at places like CBRE, Jll or consulting firms like Townhouse Partners? Any advice on a next step or right direction would be much appreciated.
Why not try to get in PE now. I would actually look up some companies you would like to work for, see if anyone went through the NYU program (Linkedin profiles.) Call/email them. You can also see their work experience and see where they started, and that will also introduce you to some smaller companies in the area.
Thank you Dick, from what ive been hearing/told its going to be difficult to go right to PE because I don't have any deals / real case modeling under my belt. I plan on reaching out to some PE shops and seeing what happens but I also want to look at other routes on how to get there.
If I was you I would target smaller REPE firms and try and reach out or look to get into investment sales at a CBRE/Eastdill/JLL.
Don't take this the wrong way but the certificate is meaningless.
Also in my opinion a good debt shop can be a good place to go however I would avoid consulting.
So you would avoid applying to analyst positions at places like, Altus Group or Townhouse Partners? why would you avoid consulting/advisory analyst positions (if I were to get good deal flow and modeling/analyst experience and it was for only a year or so)?
Contrary to some other opinions I think starting out at very small PE funds that are
Interested to hear more about this. Would you consider opportunities with smaller funds u/w multiple asset classes superior to working for a larger well-known fund focused on u/w a specific asset class?
what do you guys think about getting into a cmbs side of CRE...analyst or underwriter position?
you mean originations or underwriting?
I tell people all the time to look at their career as a long term project. Couple years underwriting in a high deal flow shop with geographic and product type diversity is great, even if it's on the debt side. There are way more people interested on the buyside then there are positions.
The RE certificate tells me you're more committed than the next guy. Keep it up.
How well do you know Argus? From the perspective of a 2nd year PE Analyst in the Acq Group, its a program you need to be very comfortable in. The time i spent on the brokerage side building those models from scratch was the reason i was hired on the REPE side. Not a bad route to go if you want deal experience, and you'll meet a ton of Acq guys since they're your buyers.
I haven't used Argus but I plan on getting certified/taking a class on it soon. I would definitely want to get in as an analyst on an investment sales team or a Capital Markets Group at a brokerage here in nyc... im not seeing to many openings available now though.
Is Integra (valuation) in a larger market such as NYC/LA a good place to start and break into a small REPE in the future?
Need help with career path in real estate (Originally Posted: 06/15/2013)
I have been having anxiety lately about what the hell I am doing career wise. I wanted to see if anyone could help me refocus.
I have always known that I wanted to do real estate, but for the longest time I never really knew what in real estate I wanted to do. I am now 4 years out of college and feel like I am stuck in an entry level, go no where position, and that has really been hitting home with me the last few months.
Background: Top 50 University, Low GPA, Active outside of classes
Work Experience:
1 Year as a Commercial Real Estate Broker; Managed to get over $15MM on the market but failed to sell the buildings before becoming desperate for a pay check
2 Years as a Commercial Loan Underwriter for a Corporate/Commercial bank. I underwrote business and commercial real estate loans.
Current Position (1 Year) is titled as an Asset Manager, but in reality my day to day work is that of a property manager. I manage about 3 Million SF of property across the US. I have realized that this position is ripe with middle class and mediocre for the rest of my life....now I am freaking out. There seems like there is no light at the end of the tunnel where I am now. No prospect for promotions or much of a raise - I am basically at the ceiling when it comes to 'property management' in a mid market.
I want to get into development and acquisitions. I want to work 80 hours a week and know that I am making serious money with the potential for equity in the deals down the line. I have thought about saying screw it all and steering my career to a full time investor and a part time broker - starting with SFH or a 2 unit and working my way up to bigger deals.
Any advice? Where should I start looking for jobs? With my experience and being how old I am, should I be applying to entry level analyst jobs and see if I can go that route?
I dont want to get stuck and miss the boat for the bigger and better opportunities...and I feel like I am running out of time very quickly to get my career back on track.
Your path is similar to mine. Directly out of college I was a sales broker for about 6 months, but didnt like a lot about the sales brokerage side but was intrigued by the finance side. It seemed like the finance guys were smarter and could take me anywhere in real estate, unlike brokerage where you are mainly stuck. I am currently an underwriter for a commercial bank for a high volume deal team.
I'm curious as to why you left your bank? In my opinion, in most real estate sectors you are either a deal maker, or you are an underwriter. Where you not in a position to eventually bring in your own deals? Or did you just not like the finance side.
I wouldn't panic. But there's nothing wrong with trying the brokerage path like you mentioned, if you can afford to go without an income (which is a big "IF"). If that's possible, because you've already underwritten loans, I would totally go work for a brokerage doing debt placement.
I distinctly remembering talking to the guy that runs the office in my city for a respected national commercial real estate banking group. He said he sometimes talks to guys who are years into their careers who want to be producers, but have spent quite some time doing analyst work. His question for them is, "Well, if you've been wanting to be a producer, why haven't you done it yet?"
Again, I mention this because you've underwritten loans before, but it applies to a lot of the more exciting jobs that you are describing. It was a little harsh, admittedly. But still, the concept of "if you wanna be a dealmaker, then at some point you have to somehow just make the leap" resonated with me.
Hey, thanks for the response. I was in a position to bring my own deals in, but I would have been more in commercial banking bringing in mostly commercial loans. This was not something I had a desire to do. Getting involved in real estate is really all I was interested in. Thus, jumping ship.
Yes, I agree about the wanting to be a producer thing. I tried the brokerage path, but failed to sell one of my buildings before I ran out of money. I should have waited another year or two before jumping in.
When it comes to getting involved in the development and acquisitions part of real estate, where and when would you start looking? What position would be the easiest to transfer to with my work experience (brokerage, underwriting, and property management)?
Looking for some insight on my career outlook:
Undergrad accounting degree, finishing up MBA at solid public school.
4 yrs of commercial real estate lending experience underwriting all types of loans including a&d, construction, homebuilding, multi-family, office, retail, industrial, mobile home park, mini-storage and land.
Recently took an acquisitions analyst role for a residential developer/builder thinking this combination would set me up well in the market place having financing and acquisitions experience.
Knowing my background what types of firms would I be eligible for and how would real estate professionals perceive me? Would love to be a senior acquisitions guy, do my own deals, or work at an repe shop. Thoughts?
I'm curious on your situation. I currently have 4 years under my belt as a commercial lender focused on real estate in Boston and have met or exceeded production goals each year. Prior to that was a credit analyst for 3 years. I'm well versed in asset based lending, construction / development for retail, apartment, single fams, mixed use etc.
I'm at a regional bank making 110 base + ~20% bonus and have the itch to join PERE. Going to talk with a recruiter soon that placed a friend.
Thoughts on target position within PERE? Salary? Background being compatible? Should I consider a REIT?
Also... Is it a bad time to get into PERE (maybe late in the cycle??)
.
Commercial real estate pathway (Originally Posted: 04/14/2014)
Hey Guys,
I'm a recent MBA graduate and prospective recruit for a large commercial real estate firm. I will be speaking to a VP at the company shortly and need to express a coherent and comprehensive vision of my expectations as well as departmental areas of interest within the firm.
However I am finding this rather difficult, so I was hoping those of you with a little experience in the business could gauge where I would best fit in.
Any help and input is much appreciated. Thank you again...
... what?
Pursuing a Career in Commercial Real Estate (Originally Posted: 11/10/2013)
I am currently working for one of the Big 4 in their federal advisory practice. I joined straight out of college and have been with the firm for about 3 years. To date, I've worked on a variety of public sector financial services projects mostly related to real estate (e.g., designing and supporting asset disposition programs for federal and quasi-government agencies) which I have a real interest in; however, I've noticed, at least within my group, I have little control over the projects that I am assigned to (at least if I wish to be promoted) because work is dictated by the contracts that we win. Recently, I've been assigned to some IT related projects which I don't have a passion for. Also, I am concerned that if I stay with my current firm, I'll be unable to develop some of the more technical skills that will help me further a career in commercial real estate. I am currently considering changing firms. I know commercial real estate is a broad field and there are multiple career paths (e.g., REIT, REOC, REPE, Commercial Lending, Commercial Brokerage, CMBS, Appraisal, Property Management, etc.). I am trying to determine my best next career move. Given my background, does anyone any suggestions of commercial real estate career paths that I should consider as well as any helpful tips?
Have you considered a move to the real estate valuation/advisory wing of the shop you're currently at and/or one of the other big four?
The big four, notably EY and Deloitte I believe, also have their structured finance groups that perform due diligence/consulting for cmbs securitizations. Seems as though many from these teams wind up exiting into a cmbs shop. You may know this, yet just throwing out my initial thoughts.
I recently moved from Big 4 audit to CRE. I currently work as an acquisitions analyst for a REIT. When I was looking at firms, my two biggest criteria was that the company was growing somewhat fast and they had a strong history of promoting from within. I found the perfect REIT that had both of those attributes. As a result, I was very quickly able to move around in the company to my current position (within 4 months of starting).
I found my position through a recruiter that had strong ties to the real estate industry. At my firm at least, they really value people with Big 4 experience, regardless of your role (i.e. audit, tax, advisory).
Anyway, good luck! I would personally recommend an acquisitions role. Great way to see the entire real estate industry (valuation, modeling, legal side, brokerage side, asset management, due diligence, dispositions). But of course I am biased.
Failed at my business. Getting back into CRE (Originally Posted: 07/21/2013)
Spent my first 4 years out of college in multifamily real estate. Spent the last 2 years running a branch of a bank. Actually, we've done pretty well, but my business partner and I can't get along anymore and the 100 hour weeks and the intense stress have pushed me to the brink. I'm ready to walk away and get back into commercial real estate/multifamily real estate. The money--and the money has been phenomenal--is not worth it anymore. I've gained 50 lbs in 2 years and face intense social isolation because of the long and unscheduled hours.
Since starting my job search, I've found out that I'm overqualified and under qualified for most jobs (under qualified only in the sense that my specific qualifications don't necessarily match the hiring criteria 100% even though there's nothing in CRE that I can't pick up in 4 weeks...real estate is absurdly easy).
The biggest issue I'm facing is that I seem to be overqualified for most jobs and am having trouble getting responses as a result. I'm actually happy to take an analyst level job in CRE at this point. Are there any suggestions for how to deal with being considered overqualified?
Two things:
Grow your network in the industry. You need someone higher up to recommend you.
What type of company are you looking to work for and in what role?
Ideally a multifamily shop. The big names like Fannie Mae, Freddie Mac, Centerline, Berkeley Point, Wells Fargo, Berkadia, Prudential, Grandbridge, Northmarq, Beech Street, Greystar, etc. I haven't started to work my contacts yet since it seems pretty mercenary (ya know, to talk to someone once every 18 months for help with a job, lol. Hate doing that to people because I know I wouldn't like it to happen to me...). Production or underwriting--I've really enjoyed both (in the past).
But I'm also pretty passionate about home building (built 5 houses for profit) and would be open to office or retail.
Love real estate in general. If you've ever built a house or worked on a project--my God. There's something so satisfying about building a quality product and bringing it to market and providing someone with a roof over their head.
EDIT: looks like my dirty laundry is getting aired on the front page...
Dunno if you've already done this but if it were me I'd consider outright saying "I'd be happy to take an analyst position in CRE despite blah blah blah" but phrase it so it doesn't come off as arrogant. Perhaps people just think you're blasting messages/resume and haven't given much thought to what you're applying to.
The other thing you could do if you have no other options is reword your resume so it sounds a little worse, ie less experienced/knowledgeable. Can't hide your age though.
PS, what do you mean you ran a branch of a bank and worked 100 hour weeks? I thought local bank branches are open like 10 hours a day. I have to be missing something here.
Personal production, hiring personnel, training employees, managing finances and leases, establishing procedures, managing compliance (nightmarish--thanks, Dodd-Frank), etc. on a shoestring budget that only goes up with production, commissioning websites, maintaining site content, and overseeing marketing and many other things is time consuming. Work normal hours of 8 am to 6 pm 6 days a week and then I do most of my personal production in the evenings, which is basically a 40-hour a week job in itself. 100 hours easily. Haven't taken a vacation DAY in 2 years--I even worked a half day in the afternoon after having morning knee surgery in February.
This is an impossible pace that I can't continue as there is no realistic end in sight in the next 24 months. At 3 am on Friday night it really hit home as I keeled over in pain--emotional and physical pain (like, gas from stress or something).
You said you want to work for a "multifamily shop" but the examples you gave are mostly lenders. Then you go on to say you want to develop which none of those companies do.
You need to focus and narrow in on something. It sounds like you are too old to be a generalist so focus on a specialty.
If you are managing a bank branch (I've never heard anyone work 100 hour work weeks running a "branch") it seems like the most obvious move would be RE loan originations. You can choose your work/life mix by the size of the lender you work for. Something like Pru, NY Life, Metlife, (any large life) or a BB bank and you will be making good money but still work relatively long hours (but not 100 hour weeks), if you go to a local or regional bank you will be giving up income but the hours are very 9-5.
Something sounds off here though, there's more to this story.
So you like residential, office and multifamily and enjoy the development side and the underwritting side but you named debt shops and come from a regional bank working over 100hr weeks (twice the norm for a regional bank manager)... very confused
Hey I work at one of the companies you listed and I sent you a PM. I don't have any pull but I'll do what I can.
Thanks for all the responses. To clarify, debt shops work on new construction projects pretty regularly. I've worked on a dozen or so multifamily builds, so it's not completely out of the ordinary to work on those files. The lenders that I listed are all multifamily lenders. Only a handful of those organizations do considerable non-multifamily transactions.
I'm not a branch manager for Bank of America. I manage a 21-year-old regional bank's brand new branch (well, brand new when I started). It's more or less an entrepreneurial role, not an administrative role. My pay is 100% based on the branch's profit. In addition to working normal 8-6 I work basically 7-1 or 2 am most days of the week on my own origination. Maybe it's 90 hours some weeks, 105 other weeks. Not sure why it's relevant--I'm quitting because of the hours and the strain on my health. Whether it's 90 hours a week or 105 just isn't relevant.
From what I can think of, going to be a real estate broker might be the easiest thing for you now. But it's not a salary job, but you entrepreneurship of business will make you survive very soon.
Odit est illo et recusandae ratione. Voluptatum quia sequi quo commodi. Quisquam consectetur et omnis rerum. Ea modi recusandae itaque autem. Nisi et laboriosam eveniet. Aspernatur atque excepturi sint id officiis quis.
Debitis numquam quia eius ut neque enim. Est consequuntur blanditiis rem iure accusamus voluptatem.
Voluptas aut perferendis nostrum accusamus. Reprehenderit est et ad culpa accusamus perferendis. Rem facere nihil nemo esse ea aut. Aut recusandae rerum soluta aut earum est rerum.
Omnis voluptatem et sed velit voluptas. Voluptatem nesciunt labore iste et accusantium a aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
At et explicabo vel odit error omnis quo. Veniam quibusdam fugiat suscipit eos molestias maxime possimus.
Consectetur ducimus harum veniam voluptas eos iusto sint. Blanditiis quaerat debitis illum inventore itaque. Sequi qui quaerat numquam rerum adipisci ea vero iusto.
Expedita neque ducimus perspiciatis at. Eaque qui qui voluptatem voluptatum minus iste deleniti. Rerum distinctio exercitationem et sed et esse.
Maxime molestiae molestiae eaque quia dolor assumenda repudiandae odit. Accusamus in dolores necessitatibus. Voluptas quisquam sapiente sequi. Voluptate unde illo sequi. Veniam facilis et eos. Molestias fugiat illum corporis et autem molestias nesciunt.
Reiciendis iste veritatis modi voluptatem. Nulla eos saepe ducimus nobis illo pariatur aut. Quia aspernatur dicta veniam sed sed occaecati sapiente aperiam. Est numquam commodi temporibus sit vel. Et et veniam fugit possimus in voluptas. Modi ullam quaerat in autem doloremque esse quia et. Est laudantium laboriosam iure est nobis.
Sed rerum beatae sint ratione modi ullam id maiores. Et ducimus quia neque cum impedit maxime. Ut minima soluta qui. Doloribus sequi non sapiente ut repudiandae nihil delectus animi. Eos officiis quae delectus sunt voluptas.
Omnis consectetur eveniet aperiam id. Eveniet quod dolore eveniet ut repellat asperiores esse tenetur. Nulla est voluptate voluptate laudantium ea tenetur.