I'm wondering what analysts get paid at the "real estate investment banking" groups at major brokerages. The capital markets, IS, structured finance/debt/equity groups or whatever the groups call themselves.
I've searched the forums/the salary sections and glassdoor, but there isn't much info or I'm finding numbers that seem low to me (60k). Are these positions comparable to real estate banking groups at banks? What are bonuses like? I see that it could depend on the team... Then what's a typical range?
I apologize for posting this... since I know it has been many times, but this has barely/if at all been answered. Nevertheless, it would be great if someone could give me some insight. Also looking at experienced, but not necessarily senior analyst level (not entry level/ out of UG). Thanks.
No worries, it's a misnomer that is perpetuated by young brokers (including my friends) that hype up the job description. I'm not knocking the hustle either. When I got out of undergrad my job importance was occasionally exaggerated, and it usually correlated with how attractive the girl at the bar was.
Rough guesses are below so don't hold me to it. Besides... it's usually the best way to stir up some conversation, people always love to chime in with a "how dare you compare Bank X to Bank Y you god damn plebeian"
Bulge Bracket / Elite Boutiques -- $60-70K base, 80-100% bonus, 90+ hours -- Citi, MS, Evercore, Lazard, etc. lots of data on this from Glassdoor, WSO and other sources
Middle Market Banks -- $60K + 50-80% bonus (guess), 80-90+ hours (guess) -- Houlihan Lokey down to Raymond James, data is out there just fire up Google
Brokerage Houses / Capital Markets / Debt Teams -- $40-70K + 20-45% bonus, 60-80 hours -- Eastdil Secured, CBRE, HFF, JLL, and so on. The heart of the confusion.
Smart people that understand the markets but this is brokerage. I have friends at Eastdil and they love telling people it's Investment Banking. While Eastdil does well and they are paid at the high end of this spectrum, I respectfully disagree. IB, in my opinion, is for companies recapitalizing, M&A, and complicated debt structuring, among other things. Similar skill set involves sales and modeling (read: PowerPoint, formatting) but different industries.
Agreed. Also just wanted to know what you think about transition to IB from a REIB group at brokerage houses?
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your guess for middle market banks is correct.
Eastdil, HFF and CBRE have true REIB. Others don't. There is investment sales/capital markets---these firms have both that and REIB. They underwite CRE companies and even bring out IPO's
Just want to point out, all 'investment banking' is, is capital raising. The brokerage houses normally just focus on raising capital for a single asset at a time or a portfolio of assets. While the banks (read: traditional investment bank) focus on the whole company (REITS). Coming out of a place like eastdil, you can have just as good exit ops through real estate as a person coming out of GS, MS, JP, C, DB, CS, etc.
If you are thinking of going this route, you should make sure that the person you will be supporting has institutional clients. If you want to jump to an institutional shop, you will have institutional contacts now and also know how to model. You will also learn how an institutional client looks at deals.
Sorry for digressing. Anyway, pay wise at the brokerages for this is 40k-60k. Some may include bonus. Depends on the team. Usually it isn't great pay, but after a few years as you move up and can collect commissions, you catch up to peers.
For your first job don't focus on the money. Just learn. Money will come.
In terms of pay, many don't realize this because being an investor is sexyier, but the brokers trade off of volatility and make their money in good markets and even in bad. While an investor could have 'bought well' in 2005-2007 - they may have still gotten wiped out in 2008 because of the market.
Note: I want to be on the principal side, but just thought i would chime in.
Great, thanks a lot everyone... very helpful.
I think this is a worthwhile thread to discuss what is and isn't REIB. It seems that a lot of the major Brokerage houses market themselves as having a REIB division. From what I've read in this forum, it seems that CBRE, Eastdil, JLL, HFF, CW function as REIBs but mostly at the Property or Portfolio Level while traditional REIBs provide similar, but a wider array of services at the Company Level (REIT, Gaming/loding firms, etc).
Would love to hear some thoughts of the forum experts (looking at Jimbo, Prospie, CREs (Path,123, and I know there's 1or 2 that I'm forgetting, and even Fez ).
Also, pudding Do you really think someone in a REIB-capacity role at the Property Level (JLL/CB) are really only pulling 40K while doing 60+ hour weeks? That seems quite low but maybe that's the case in more tertiary markets.
@The Duke of Wall Street I do think that many pay that low. Yes, one should pay up for talent. But remember, an analyst is a support function. They will model, create pitch books, and place the debt by speaking with the banks. Usually analysts are paid directly out of pocket by the senior broker and not paid by the firm. They may also have a bonus per each deal that they receive, which will pull them above 60k. But you suffer with your team if they are doing poorly.
"But you suffer with your team if they are doing poorly."
Finally someone says it. An analyst is just that ---they analyze, create pitch books, do the cash flows in argus/excel, quote brokers on concessions/rates/submarket commissions, quote lenders on relevant rates, collect DD materials, control RCM1.com and the blast, answer principal's questions. They do everything they can (if they are good) and they do it well. They also learn a ton (most analysts know the most about the property/portfolio---even more than the senior members). They have basically no chance to bring in new business so when the seniors on the cap markets team struggles, its usually a "writing on the wall" type of thing and they jet for greener pastures. It can be frustrating for many. Brokerages are VERY volatile--so sit back and be ready to order new business cards on a whim. Having said all of that that, its a good place to start.
The Duke of Wall Street you pretty much nailed it. Traditional REIB's do IPO's of companies etc. However, CBRE and Eastdil do that too. HFF is huge on the equity/debt offerings as well (however mostly on the asset level so not really the same thing). C&W Cap Markets, NGKF Cap Markets, Colliers Cap Markets, CBRE Capital Markets etc are essentially selling the property itself (asset level) aka the cash flow that the building produces (rather than the bricks and sticks themselves which is residential brokerage). However, these shops also do debt/equity offerings which, again, are on the asset level: Dept pitch books to banks to get the best loan on the property, equity pitch book to investors who might want to buy a share of the property rather than the whole thing etc.
We're good for this discussion about once a quarter on this site....
Oh and comp for CAPITAL MARKETS analyst in a primary market ranges from $50k-$65k with bonuses on each and every property your team sells (few grand here few grand there).
Any idea on whether this has changed much over the past 2 years?
I have a friend who just got hired as an analyst at a major brokerage in a major market for their debt placement team. He gets $50k base and 3% of the total commission paid when a deal closes. Then, twice a year, he gets a performance-based bonus that is taken from a larger bonus pool that is set aside from all deals the firm has done.
As a first-year analyst heading into this position, he will make something like $100k all-in, then $120-$160k year 2. Hope this helps.
I work at a LIHTC syndicator. I've always thought of it as capital markets/private equity. Our production/acquisition MDs refer to it as investment banking. Thoughts?
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