If you could go back…
If you could restart your career in CRE what firm and position would you ideally start at? Current senior in college looking for jobs and I’m curious what people think.
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Based on the insights from Wall Street Oasis, the ideal starting point in your commercial real estate (CRE) career largely depends on the opportunities available to you and where you can learn the most initially. Here are a few key points to consider:
Embrace Any Starting Role: The best place to start is with the job you can get. Early in your career, the focus should be on learning and gaining experience rather than the prestige of the firm.
Training and Development: Look for roles that offer robust training programs. Companies that invest in your growth will help you become more competent and competitive in the field.
Analyst Positions: Starting as an analyst in a firm that allows you to work across different areas such as acquisitions and asset management can be particularly beneficial. For example, firms like Crow Holdings are noted for their analyst programs where you can gain exposure to various aspects of CRE.
Brokerage Firms: Consider starting at a brokerage firm, even if it's a boutique. These positions often provide a good foundation in sales and client interaction, which are crucial skills in CRE.
Networking and Flexibility: The CRE industry is open to networking, making it easier to move between jobs. Starting in a less-than-ideal position is common, but with the right networking, you can transition to different roles as opportunities arise.
Regional Opportunities: If possible, start in a market where you intend to build your career. This helps in developing a strong local network, which is invaluable in real estate.
Remember, the key to success in CRE is not just where you start, but how you leverage your initial experiences to grow in your career.
Sources: Best Places to Start in Commercial Real Estate?, https://www.wallstreetoasis.com/forum/real-estate/can-you-make-a-career-in-cre-capital-markets?customgpt=1, Career Path in Commercial Real Estate
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I guess I’ll bite, I don’t regret my choice but would do it differently if I could build a Time Machine. I choose to work at a bank over a debt fund because I thought the training would be better and it would be good to have a big name as your first job. I live in a “T2” city so every time a big deal comes in that is located in my city, it goes to NYC. Most of the big banks have a cre office in my city so I am not sure how it varies. However, my office gets deals that are likely going to die and a lot of AM work. It has not been bad by any means and I have learned a ton, but I do not see myself being at the bank much longer. I know a guy who works at the debt fund and his job sounds more exciting / dynamic.
If I could go back, I probably would pick a different career to begin with, but if I was set on CRE, I would try to get an analyst position at one of the top brokerage teams on my market. See a ton of deal flow, work hard, get paid well, build a ton of connections, and you get to see what brokerage is like without actually taking the risk of being a broker. If you like it, you can stick around. If you don't, tons of REPE shops or developers will hire you as an associate.
Why would you pick a different career? What would you have done instead?
Because I'm not interested in starting my own shop or endeavor, and other careers pay much better for career employees than RE
I'd convince my dad to get into the business so that by the time I graduated college, I'd have an easy in. Would have saved me $100,000 and two years of grad school.
Legitimate question - but would you feel the same way about your career success if you knew it was directly tied to nepotism?
It's a fair question and a hard one to give an ironclad answer to.
Theoretically, I'd probably feel less accomplished if my career was entirely as a result of nepotism, but with two more years of income and $100,000 of student loans that I didn't have to pay back over the last 8 years, I'd own quite a nice house by now, so there are trade offs...
This is legit. My father took bad advice from friends who didn't work in this area at all. I would have joined an Agency, made connections, and had my family start investing in Real Estate, MF, and industrial, both well before their peaks during the last period of free money.
A friend of mine left a bunch of Warehouses for trucking depots and probably 10-15 storage facilities in the mid-Atlantic. Dad started out working for DOT and saw an opportunity in the late 90s. My buddy doesn't do anything and profits 100-150k a month and I think he takes out a very small percentage as this profit. He continues to be a Private funder of a ton of Bars, small business, MF projects in his area.
My parents are well into their 70s sitting on roughly $10-14M in assets and even in a trust we will get dinged since very little is in businesses or real estate. We'd have the step up provision and cash flow at this point.
Eastdil - tried to get a job there at 22 and couldn't (ended up at CB). Turned out ok for myself but for some reason I've always felt like I let that opportunity slipped away.
I’m in CMBS but if I were to start over, I’d go into a REGAL IB group. Not really asset level real estate and mostly corporate stuff but absolutely the best pay from the start and you can go to all the top funds with that experience. Felt CMBS and other asset level roles closes you off to a lot of the high octane shops.
For example, I just can’t get excited about a small self storage or industrial deal. But working on a billion dollar take private sounds a lot more appealing.
I was lucky in that I ended up in the place I'd tell myself to go, but go somewhere you will get a ton of reps. Early in your career you want to see as many deals as possible. As my career has played out flow is everything and the more deals you have seen the more value you bring to the table.
Start in brokerage right out of school and take the risk as a broker sooner before I got bogged down by financial committments (mortgage, etc.) - now leaving brokerage for a developer and happy with my comp. but always the "what if?".
I'd like to say go back and redo my undergrad to major in finance and start my career in REPE to give myself that base I feel I could always return to. What I did was engineering > construction > MBA > dev. It worked out for me and I didn't know I wanted to do real estate when I was in college, but I'm sure I'd have a lot more doors open to me if I knew more about RE finance. Sure, I'm doing fine in development and can probably stay here the rest of my career, but to other people's points, if you're not going out on your own RE doesn't make a *ton* of money and within development it's even less.
The big question I have about that, however, is if I'd even be successful in a career in REPE. I don't think it would have been an issue with conceptually understanding the material (I did get a degree in mechanical engineering, after all) but I don't think I'd thrive, or even survive, in a culture of 60-70 hour weeks, glued to an excel spreadsheet, etc. that you need to do for a top REPE spot. So my options right now may be more limited, but ultimately I think I chose the career and path that was best suited for my skillset.
Isnt the long term ceiling in development still pretty darn lucrative though? Even as a w2?
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