Real Estate Bonus
What are the bonus ranges for RE analysts? I did not come across much information on this on WSO. Specifically, bonus pays for Analysts 1-3 & Associates?? Just some % figures for RE firms industrywide.
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Have seen 30%-100%. Totally firm dependent. That figure is for acquisitions roles in NYC that I’ve been quoted from recruiters
Really depends on what type of position you are looking for and how the bonus figure is generated.
Dev perspective here: pretty variable and depends on production but personal target at 40-60% as An2 before jumping to manager and moving into promote/carry
Is there a specific position you are looking for more info on?
I am in talks with a RE firm group in NYC. Probably will push for working in debt investments. I am a student at Schack (MS in RE). Getting out of college, I am not sure if I would start as an associate or analyst since I have construction management and no prior RE finance exp. What bonus should I be looking at? I am thinking they would offer me with a start at $85k. Just want an idea since that isn't too good a start in NYC imo.
Not sure on comp numbers (southern market here) but you'd prob come in as an analyst. I'd keep your options open but wouldn't worry too much about your entry comp that much. If you are dead set on debt I'd probably defer to any other debt players who can chime in.
Agreed on your point there. But just to think about it, what bonus percentage should an analyst expect?? Are first year bonuses also in the 30-40% range?? Again I am sure it is subjective depending on performance and also on the year but should that be the expectation getting into the job since no one really knows the bonus structure at the time of offer.
This is just generic knowledge in my market (large Texas city) but this is typically how I’ve seen bonuses for 1-2 year analysts in different RE industries in my market:
AM - 10-20%
Development - 10-30%
Debt - 20-40%
Acquisitions - 30-50%+
Brokerage/IS/Capital Markets - 0%-100%+ depending on team, deal flow and base pay structure
This is accurate for dc area too. Obviously will depend on firm and role
Looking at AM as a career, but would you say AM has a larger base salary and lower bonus than some of the other career paths mentioned?
Hard to generalize as almost all RE groups have an AM team
A development shop will have AM analysts but they will probably get paid lower base salary and lower bonus than the Development Analysts
A debt fund, bank or lifeco will probably have AM analysts (aka loan servicing) but these analysts will get paid less than analysts on the originations side
A REPE firm that is large enough will have both AM and acquisitions analysts but again the AM analysts will make less base and less bonus than the acquisitions analysts.
Whether fair or not, most companies think AM is easier than acquisitions and therefore pay accordingly - note that an AM analyst at a REPE firm might make more than a development or originations analyst at a dev shop or lifeco
I would say bases are the same for repe am and acq at the large firms the only thing that changes Is the bonus
agreed bases are the same - REPE and credit funds.
At my shop (debt fund) base/bonus pay for all levels is about the same. The difference is how cash/deferred comp/carry in your bonus is split.
Originators get more cash upfront with smaller deferred/carry because their comp is tied to immediate production volume. My comp is tied to success of achieving underwritten returns (management of the loan and financing) and loss mitigation, so I see more deferred/carry and a smaller cash bonus.
Said another way, they incentivize originators to get deals done and they incentivize asset managers to make sure the deals are performing/pay off.
The similar bases is pretty common for most companies. Having total comp dollars be the same is a bit unusual. I estimate the difference is generally about 20-30%. But I've also found that as a consistently top bucket AM, I get paid the same or better than origination folks at the same level.
For my friends at larger shops, can confirm this is accurate and a good general range to go off of.
RE is too broad for this. Need to pinpoint the role/specific sub industry. Working in leasing in Charlotte vs Oaktree debt in NYC are both RE…
I am in talks with a RE firm group in NYC. Probably will push for working in debt investments. I am a student at Schack (MS in RE). Getting out of college, I am not sure if I would start as an associate or analyst since I have construction management and no prior RE finance exp. What bonus should I be looking at? I am thinking they would offer me with a start at $85k. Just want an idea since that isn't too good a start in NYC imo.
analyst. $85k feels ok, maybe low... that was my analyst start but also 6+ year ago... and bonus idk maybe 30-40k? junior analyst is typically fairly low on bonus.. but ramps up quickly... associate looking at 100-150%, etc. (in my experience)
https://sousoupartners.com/server/2019/MARCH-PERE.pdf
Sousou Partners have an informative compensation report for March 2019. May be slightly outdated but can still provide a decent reference point.
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