Hi All,
So I am currently interviewing for a job as a financial analyst at a real estate brokerage. The job description is:
Underwriting of property values
Creating financial analyses, packages, and investment proposals Support for client presentations and brokerage efforts in market Market / neighborhood research and reporting for all transactions Assemble market and financial data
Perform feasibility studies
Database management
Research and collect comparable sales statistics
Managing weekly client reporting
Studying market trends / Research projects
Create marketing books and neighborhood reports
Various types of brokerage support and adapting to new objectives to help facilitate processing the broker’s business
My question is: Does anyone have any experience of exit options of working within a brokerage house as a financial analyst? I'm assuming I will be supporting the brokers for their sales pitches etc, but if I wanted to, let's try, try to transfer to REPE in a few years, or an acquisitions role, would this be possible? Does anyone know of people who have made a jump like that? The firm this is for is a top investment sales brokerage in a major city.
It's definitely possible, if and only if you graduated from a good undergrad.
Don't listen to the poster above. My undergraduate school blows and I networked my way into a acquisitions role at one of the largest private owner/developers in the country.
I came from brokerage.
Thank you so much. SHB, could you share a little about your experience transitioning from brokerage to acquisitions. How long were you in brokerage? How did you sell yourself? Do you see the transition happen often? Any advice you might give? If you would like I can PM you too. Thank you for the help!
There are plenty of guys on the principal side who went to no-name colleges and came from the brokerage world.
It would help your cause if you worked at a prestigious brokerage house. Not all brokers and not all teams are equal.
Going to a target undergrad definitely makes the transition easier, but it by no means makes it impossible for non-targets.
Any role, in any type of Investment Management puts an emphasis on academic pedigree, as that's what they are selling -- expertise.
Focus on getting your hands on as many transactions as possible. If you are really having trouble getting traction, there is always b-school. I went to a non/semi target undergrad then a target B-school and I'm doing just fine.
DCDepository and Prospie, how is leasing viewed for a few years? I have offers to go to investment sales roles, plus the one I mentioned on top that I interviewed for, but just connected really well with a leasing broker at a major national firm in a top 3 market. I know investment sales is obviously more applicable, but I know I would fit in with this broker who also seems to really like me. Is leasing a bad idea?
What type of brokerage firm are we talking about? The quality variance is huge...
Atwoodt, I am speaking about firms at the level of CBRE, JLL, Massey Knakal, as well as a firm such as Marcus and Millichap and Newmark Grubb Knight Frank.
What size and type of deals? I moved from a financial analyst/junior broker position in leasing to MSRED to a competitive acquisitions position with an active shop. I found it helpful that I closed a number of 100,000 SF+ deals while I was there. It's an intense deal environment, just like acquisitions. You also get to know the asset you're working with and tenant demand drivers/how they think.
Chrisjr, at CBRE / JLL / NGKF it would be all leasing. I can't comment on deal size, but I would be placed into an established team. So I am assuming decent sized deals.
Massey Knakal and Marcus and Millichap would be investment sales. Marcus and Millichap would be smaller deals because although I would be on a team, the majority of the work I do would be sourced by myself from what I understand. A mentor will help guide me.
Massey Knakal has fantastic deal flow but is known for their sub 100 MM niche. Which I would assume is still okay?
I felt most comfortable with the people at CBRE, and am really happy to hear you moved from leasing to acquisitions because some people have stated that you can pigeon hole yourself and I do not want to do that. My goal is to learn as much as possible though I do think I will like brokerage.
Interesting. Yes you can get pigeon holed, it is a delicate balance and a little different for everyone. But even friends of mine that have spent 4-5 years in brokerage already have a really long pipeline set up and if they leave/go to the buyside, they are walking away from a lot of future commissions. That said, the relationships you earn working in investment sales may end up earning you a job on the principal side. My learning was done at a C&W/CBRE/JLL type shop. I didn't love it the whole time (comp is terrible, cold calling can get tiresome), the lessons I learnt were very valuable.
This is all in NYC I assume? Why not look at the investments team and a bigger shop - Eastdil, cbre, c&w, jll?
Chrisjr, how long were you at the brokerage firm? I have looked at investment sales and am considering it. I have just really hit it off with my contact at the CBRE / JLL, Cushman firm and ahe reason I am looking at leasing at CBRE / JLL / Cushman and NGKF is because that is where I was able to get in the door and get someone to speak with me. Besides yourself, have you seen many people move from leasing to an acquisitions role? Also, I know comp figures are low to start, but realistically, what were you / your friends beginning to see by year 4 - 5 ? I have been told year 1 expect $0. Year 2: up to $15,000 - $60,000. Year 3: $60,000 - $100,000, Year 4: $100,000 +. Is this about accurate would you say?
Are you looking at leasing on the LL or tenant side? Commissions on the landlord side can escalate much more rapidly than the tenant side if the team you are working on agrees to cut you in on deals incrementally and you already have an established book of landlord clients. On the tenant side, your compensation will be much more volatile unless your team cuts you in on existing deals from the get-go, which is highly unlikely.
I worked in leasing for 2+ years and think that the experience gained is invaluable. Real estate is an asset that kicks off cash flows, and those cash flows are driven by tenants. If you don't understand tenant concerns and the nitty gritty details that govern a lease transaction, it is difficult to have a holistic understanding of a real estate deal. A fund analyst may be able to run basic leasing projections based on what brokers tell them about the market, but there is no way they can accurately quantify the risk associated with encumbrances (expansion/contraction/termination options on spaces, etc).
That being said, making the transition from brokerage to acquisitions on the principal side can be difficult. A lot of brokers choose to use an MSRE degree or aggressive focused networking to make the transition. I think many principal side firms see a high value in leasing experience. Many brokers make the transition to asset/portfolio management for a real estate owner, than up from there.
Also, if you could do it again, would you do leasing or investment sales? And any particular reason why?
I would like to add on to puddings question. Add Capital Markets brokerage/ Debt placement to the mix? Knowing what you know now, were would others on this board start?
I think landlord rep is by far the best place to start if you are going the brokerage route. You gain an intimate understanding of how a variety of different ownership structures think, operate and structure deals, from a cash flow sensitive family trust owner to an occupancy-driven REIT. You will also be dealing with highly sophisticated real estate experts (asset managers at large funds, developers, etc.) in contrast to tenant work, in which you will likely be working with unsophisticated, small tenants for at least the first few years of your career. Brokerage is all about team fit, so if you have the opportunity to work with an established landlord rep team that has a good model for training junior personnel, take it. IMO that is much better than working as a cold calling machine without getting any relevant deal experience on the tenant side. Regarding comp--if you are good, 250K+ by years 3-5 is not unrealistic. That assumes you work your way onto an active team, are getting cuts of deals after ~2 years, and are actively demonstrating value as a team member in terms of running deals as well.
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