Best path to Development?
I know real estate as a whole has no direct path but someone with not really any full time experience relative to development/CRE finance..what is the best way if one can't get a Development Analyst type role off the bat? I really don't want to do Brokerage even as a debt/IS Analyst type. What are other pathways?
I am one of two analysts at a regional firm. I came from the brokerage side of the industry and the other analyst came from the design (architect) side. I know it's not the answer you are looking for, but there really is no "best way" to get into development.
From what I have gathered, the longer you wait to get into development, the harder it becomes to break in (associate, project mgmt, VP positions require significant development experience). So I would continue to search for analyst opportunities. What do you do now? It might be worth sticking with your current role and continuing your search.
How did you land your role?
Seems like a lot start out in brokerage. I always felt that has better exit ops to like Acquisitions at a fund/REPE. My goal is to get with a developer in some sort of way, move on up to maybe eventually VP one day or get my MSRED and eventually branch off on my own with doing small multifamily value add/development.
I emailed a ton of developers, investment groups, and brokers for opportunities in my target market. Got a coffee meeting with this developer, stayed in touch through email, and two months later he asked if I could schedule a trip back to meet the team. His biggest concern during our meeting was my lack of development knowledge (entitlement process, design and construction concepts), experience in this market, and deal underwriting experience; most development shops are pretty lean so they want someone who can come in without hand-holding. I requested he call a few VP's and EVP's from my brokerage office who could attest to my work ethic and abilities. They turned out to be great references, because a few weeks after that he called me to make an offer.
I rarely see "development analyst" job openings, so I think your best best is to look for off-market opportunities by reaching out to developers directly. Get in early - it's a hell of a lot easier to work your way up once your inside. Also, by looking for off-market opportunities, you aren't competing with people who have their MBA's and MSREDs.
What CRE_Erector said. I came from the consultant side, and am now a development manager with construction mgmt as my core expertise, but I touch everything from entitlement and financial modeling to operations and Asset Management. Your value in development is all about accrued experience, and experience is not always transferable to other geographic areas and product types. Best to get in young while you are willing and able to start at the bottom, put in the hours, and learn the work by making mistakes.
/thread
Wrong! The best way to get into development is to have a successful developer for a parent... Otherwise I guess I agree.
Investment Sales broker aspiring to break into development (Originally Posted: 05/22/2017)
I have been at an off market investment sales shop in NYC for 10 months and hold a bachelors degree from a pretty good school. Long term, I hope to become a developer (would love to work for a Related, L+M, Extell etc) but am not sure of the best way to get there. I have been trying to meet developers through investment sales but the only hard skills I have are the real estate models I teach myself on the side. Do I need to be in acquisitions? Is I-sales going to hold me back if I stay here too long? Any advice is appreciated.
I started out in development right out of school in an analyst role. Just a matter of you networking and reaching out with people/getting lucky. There is no clear path into it. Best case scenario you find a small development shop with an older guy who is looking for a mentor. There really is no clear path into it.
Nice. I'm going to start reaching out to some within my area.
Yes, I Sales will hold you back if you stay too long. The good news is that you're familiar with underwriting deals and with a year of CRE experience you'll be a good candidate for an Associate position at a PE or public developer. I made this move after a year as a jr broker in I Sales and it has turned out well so far.
A word about underwriting... if you don't do it, or you use Argus, take the BIWS excel modeling course and then say on your resume you that that's how you underwrite. That's absolutely essential.
I would network hard which I'm sure you already know being in brokerage. It's definitely going to be tough being at an off market shop. Maybe try and lateral to a more well known shop?
I know it's super cliche but the answer is networking. I can honestly think of very few industries where the recruiting is as unstructured as it is in development.
Transition into Development (Originally Posted: 11/27/2016)
I am currently a financial analyst at CBRE. I underwrite all types of properties both from the debt and equity side. I have been in my position for 6 months (since graduation) and enjoy it, however I think my next move in a year or so will be into development. I would like to begin building skills relevant to development now to position myself.
I have looked into getting a LEED certification. Do you know of other things I can do or learn to position myself best? Also if anyone has insight as to where in development I would likely be starting given my background, that would be helpful as well.
Thank you!
Yeah Development seems different. Lots of lean shops and some firms hire off a project basis.
It wouldn't hurt staying in an analyst type role for a couple years IMO, especially with where we are headed in the cycle. Next step would be to find a good development team, hopefully in your existing shop but if not you have time to look around. If you could find an entry level development role where you could work under a more senior development manager, that would be good experience in the long run if thats what you want to do IMO.
If you like it at CBRE then I would say stay for 3 years or so and go for your MSRED.
pere797 has the right idea with staying analyst. I'd wait until this time next year before looking at anything. I work for a developer right now and construction loans are getting harder and harder to do. Construction costs going up while rent rates are staying stagnant. CBRE is a good firm. Stick it out for the short term. Then I'd start looking at development.
It depends on how big/small you want to go for development. I work for a mid-size developer and it's great. Good interaction w/ the principals. Definitely helps if you want to be a developer one day. Also, I'm only about a year into my career as well and have been with this firm since graduation. From the principals I've worked with, they would laugh if I walked in and started talking about my LEED certification (which I don't have). Maybe that's just their personalities, but I don't think those guys really give a shit about that. Just be you, show you know what the hell is going on with the market, and that you're capable of doing whatever job you're applying for. Check those boxes and you should be alright. Worst case scenario go MSRED and go development then.
Stay with CBRE for at least 2-years(or any job), I agree with what everyone has said about development starting to slow.
2-years is the minimum amount of time it takes you to learn a role and 3-5 years is the sweet spot where you really start to add value.
Congrats on your decision to move to development! I made the transition as well, and it was the best decision I ever made!
I would stay in your current role a little longer, and focus on building your personal brand while you identify places where you'd want to work. It REALLY REALLY matters which development company you choose, so use this time to network and build trust with developers. Except for some of the large corporate shops, development teams tend to be small and to hire infrequently. You'll need to be opportunistic to land the right first job. Best of luck.
Just made the switch into a corporate development role from an analyst then broker role. PM me if you would like.
You definitely need to stay with CBRE for longer than a year though and it shouldn't hurt you to do so, considering where we are right now with loans, vacancies, etc.
I was also an analyst at CBRE for 2 years and recently transitioned to become a development analyst. I was (and still am) blown away by how much there is to learn/know in development, I've been in it for 8 months and still feel like I am just scratching the surface of the iceburg. For this reason I highly reccomend getting in as early as you can if that is where you want to be long term since there is a lifetime worth of knowledge to learn. My experience may be skewed because I work for a regional firm where I am involved with every facet of projects, I would imagine corporate developers streamline their analysts.
From my experience in meetings/interviews with multiple firms (again - all regional, so can't really speak for Hines type companies), entry-level positions are RARE. Since you are still relatively new to the workforce, no amount of LEED or modeling certifications will fool these guys. They know that you know nothing, that you will need 6-12 months to get up to speed and begin adding value. If you recognize this, show that you are very interested and capable of learning, you will eventually find a team that will bring you onboard.
To show your capability, obviously talk about deals you have worked on that relate to the firm's focus. Redact a few financial models and email them as work samples. Create a mock waterfall model and send it to them. These guys dont have time to give you financial modeling or written tests like HFF/Eastdil would do - so be proactive and show them your qualifications. In my market, there are a lot of developers doing $250mm+ projects who do not even have a website - so keep that in mind when you are prospecting for job/firm leads.
Happy to answer any specific questions on how to leverage your CBRE experience to development.
Edit: Everyone is saying stick it out 2 years. I disagree - why would you pass up an opportunity if it came about just because 2 years is the norm? As I mentioned, if development is your long term goal, get in as early as you can.
I spent more than 15 years in development and also spent time at CBRE and my advice is to stick with CBRE for at least another couple years. CBRE is a great name to have on your resume but also a great place to NETWORK with colleagues and clients. As an UW analyst (I assume you work in DSF group?), you're getting a chance to look at deals all over country, dig into the deal, understand the sponsor's investment thesis, see how the capital stack is constructed, learning different markets, etc. All of those skills are critical to being a successful developer. As mentioned above, we're getting toward the end of the cycle and development deals are getting scrutinized harder than ever by equity and debt providers. In a lot of cases, developers are having to go to debt funds to get deals done since typical construction funding sources are pulling back. And if interest rates tick up, who knows what will happen?
Find a mentor at CBRE, get involved with CREW (I assume you're female based on your screen name?), keep your eyes open for internal opportunities at CBRE, etc. You're in a great place so maximize what you can get out of it before you give it up. Good luck!
I'm going to go against the grain here and say that if you find a solid firm that makes solid products and is offering entry-level positions you should take it. Life is too short to bide your time and grind away at a position you don't care about and development analyst role are few and far between as it is. By the time you will have made that transition, chances are you will have worked at CBRE for at least a year too and that's all that really matters.
I'd suggest finding a firm that does both..hence you can learn both acquisition and development skills.. That's what I'm doing right now..it's great..I get extra exposure in both type of markets..I'm mostly from an investment background (MSF+CFA), but development is pretty straight forward..get a good mentor and you'll learn on the spot...
How is ULI Development book to get knowledge regarding the development process?
Break into development post MBA? (Originally Posted: 03/15/2017)
Hey gang, new user here. I've really enjoyed reading a broad range of content on this forum.
A few questions, but first context:
I've been working for a boutique non real estate investment firm for the past four years and have risen to the level of portfolio manager (yes we actually build our own investment models). I have always been interested in real estate development, and quite frankly, have a strange attraction to buildings. I have a very good grasp of finance (not specifically RE related, obviously) and am headed into an MBA program in a city in the SE that is loaded with development. In UG I really enjoyed operations classes and the project management classes as well - I felt like I was actually a "do-ER" and building something. Work with tangible output is pretty refreshing.
All this being said, I have ZERO experience with the development process or real estate specific finance. Plan numero uno is to stick with the current career path, but I don't want to close any doors to work that I think would be interesting.
Question 1: Should I forget about this completely, and take a walk downtown to get my "building fix"?
Question 2: If I get an MBA with a concentration in real estate, what kinds of opportunities will I have for internships/work after school?
Question 3: What are the specific roles that MBA's are hired into? And what kind of compensation should I expect to see if I do land one of these roles?
Thanks in advance.
There are a couple, but I haven't run into a bad one yet.
The development world is notoriously un-structured and fraternal. It sounds like you are already locked in to getting an MBA, but I think for someone in your position an MSRED would make for an easier transition. That said, it is by no means impossible to break in with your credentials which, while not development related, at least demonstrate intelligence and ambition.
Developers are most likely not recruiting MBAs, so your only realistic avenue is to network your ass off with local developers while in B school, profess your passion for development, and try to get meetings and internships. It will all come down to the relationships you can build and the subsequent experience you can gain from those relationships.
Thanks for the input Beers. Any comment on what types of roles would be open to an MBA grad?
I disagree with this. Based OP's comments, I would probably guess KF / Goizueta. Both programs have good OCR for RE (way better than just about any MSRE). Not saying it is right or fair (its not) but its life. Developers we deal with have tons of MBAs from those two mentioned.
Even if you don't get development there are still really good options in RE from those schools.
As long as you understand that development positions at reputable shops are few in number and very competitive, go for it. It's going to be an uphill battle but you can make it work. My guess is you will have to network like an animal and expect that it may take about a year to make the transition. At the end of the day, development gives you a lot of flexibility to sell your unique value proposition to an organization. At my shop the development team includes a former investment banker, a former construction guy, and a former leasing brokerage guy. Each brings something unique to the table...find out what that is for you and how to sell it.
Thanks for the input, everyone. In a reasonably large market, what would you guess comp would come out to? I'm trying to see if this is financially feasible in the short term. Obviously, I understand that long term things can change significantly. I am having a hard time finding information on comp for this arena.
From what I have seen, comp is significantly less than traditional finance, but at a certain level there may be opportunities for equity participation in deals, which is where the real $$$ is.
Check MBA reports. For development Post MBA starting point is 110-120k salary + bonus.
How To Get Into NYC Real Estate Development With My Background? (Originally Posted: 02/25/2018)
Hi Everyone, I am currently a Junior at Rutgers University Majoring in Communications and Minoring in Entrepreneurship. I am also attempting to get a concentration in real estate which my school recently started offering. Since my freshmen year I have held a New York Real Estate License and have worked part-time as a (Residential) Real Estate Agent in Downtown, Manhattan. I also have taken many online classes (REFM) on real estate financial modeling in addition to earning certifications in excel for real estate finance. I have been doing lots of networking and am also in the process of flipping a house with my parents which is turning out be a invaluable learning experience. As of now I am in the process of trying to obtain an internship over the summer with a real estate development/investment company in NYC.
I have been doing a ton of research in regards to possible real estate development/investment jobs that I could take straight out of college. But everything I find requires multiple years of experience in development and either a Engineering, Finance or Business Degree. I am eventually planning on getting a masters in real estate development from NYU or Columbia but think it would be best to get a couple of years experience under my belt before I do so. I have a deep passion for real estate and do not think I will be satisfied unless I eventually become a developer. With that said I am a bit anxious as I do not know what to expect once I graduate. With my background what would be my best options after college in order to make my way into the real estate development industry?
At this point the most logical path I see for myslef would be: Commercial Real Estate Broker (2-3 Years), Graduate School, Associate/Senior Analyst at RE Dev Company (2-3 Years), Project Manager
From my experience, it is rare to see development opportunities on the market (select leaders, linkedin, indeed, etc). They do come around every once in a while as development analyst/associate, but they are infrequent positions as the deal teams tend to be very lean.
I am currently in the final interview process at a large foreign real estate developer that came to me off-market. The team reached out to me although I have not worked in development before. I thought sharing my background to share my current path might give some insight.
Started at Top Tier Market (NYC, SF) CRE brokerage firm (CBRE, JLL, CW) and worked on tenant and landlord financial analysis, market research and pitch books. Did this for 3.5 years. Like CRE_Erector said, this is 8th grader math, and yes, that is correct. I ran NPV's on individual leases.
After that I joined a MM REPE operator as an acquisitions analyst. Job requires underwriting and performing due diligence of single assets and portfolios. ($5mm-$250mm). Been here for 1.5 years. Job came from a broker at my current company who wanted to strengthen his relationship with his client. His client hired me.
I think the best way to get into development is to network. Attending ULI development series, NAIOP events and meeting all of the developers is a great start. These speakers are here to share their passion and projects that they may have worked on for 10 years. Its pretty easy to stroke their ego's and they may be dying to mentor a young kid. Take them out to coffee and get a ask for two or three local developers they can refer you to to speak with. Keep building your network and good things will happen.
Hi gpaone97, no, I never sleep and so I can respond to any lonely threads (like this one) at all hours of the night. Impressive, I know ;-)
Calling relevant professionals! rcharles04 caoweiqun baysar
Hope that helps.
Am I able to get into Real Estate Development? (Originally Posted: 02/22/2018)
Hi Everyone, I am currently a Junior at Rutgers University Majoring in Communications and Minoring in Entrepreneurship. I am also attempting to get a concentration in real estate which my school recently started offering. Since my freshmen year I have held a New York Real Estate License and have worked part-time as a Real Estate Agent in Downtown, Manhattan. I also have taken many online classes on real estate financial modeling in addition to earning certifications in excel for real estate finance. I have been doing lots of networking and am also in the process of flipping a house with my parents which is turning out be a valuable learning experience. As of now I am in the process of trying to obtain an internship over the summer with a real estate development/investment company in NYC.
I have been doing a ton of research in regards to possible real estate development/investment jobs that I could take straight out of college. But everything I find requires multiple years of experience in development and either a Engineering, Finance or Business Degree. I am eventually planning on getting a masters in real estate development from NYU or Columbia but think it would be best to get a couple of years experience under my belt before I do so. I have a deep passion for real estate and do not think I will be satisfied unless I eventually become a developer. With that said I am a bit anxious as I do not know what to expect once I graduate. With my background what would be my best options after college in order to make my way into the real estate development industry?
Similar to what others are saying, the routes for those getting into development are a mixed bag. The direct way, which does exist, is checking jobs boards and specific companies' careers pages and applying when the jobs appear but you put yourself in a large competitive pool there. Its not a total long-shot so its always worth paying attention to but I imagine it takes longer to break in this way.
I got my role as a development and acquisition analyst for a REIT though very fortuitous networking right out of undergrad. A family friend from home, somewhat out of the blue, put me in touch with a guy who had worked for him years before and had recently taken a job as a regional VP for a REIT's regional investment office. I got breakfast with him and the local MD and they invited me to take a aptitude test and then apply for the job. Looking back I have to acknowledge that I got really lucky but it ended up coming from networking in the end.
If I were doing it again I would figure out what cities I wanted to work in, follow development activity similar to what I want to be building, and start making a list of the developers I am interested in based on my findings. Find them on LinkedIn and send emails to analysts or associates at those firms and see if you can set up a coffee or breakfast early one morning near their office. Ask them how they got their job and if they have any recommendations for you if you wanted to find a job similar to theirs. Or you can try and set up meetings with people higher up the food chain and just ask if they or anyone else they know of is hiring. Maybe 1/10 times this might not be well received but more often than not even if they are not hiring, they will appreciate the initiative and remember you when they are hiring or be willing to connect you to someone who is. Plus, worst case scenario, you get a chance to just sit down with a developer and talk about some of their projects you know about and think are cool - you can learn a ton about the industry doing this alone.
Another bit of advice is, if you can afford it, to join the local chapter of ULI if you are in a major city. There are a lot of networking events where you will be able to meet a good number of local developers. Its something like $250 per year if you are under 35.
That's awesome.
i am exploring all options to just get my foot in the industry. Ideal would be some sort of development analyst out the gate but it seems a lot of these roles are scooped up by people with prior experience. Good to see two people in this thread got a role like that straight out of undergrad.
gpaone97, bummer your thread hasn't had a response yet. Sometimes bots are smarter than humans anyways:
Any pros willing to rescue this discussion? PrinceK Terminator91 DrewP12
You're welcome.
I see a lot of roles with firms for like construction budgeting or like project coordinator. Are these potential starting points or is this basically administrative type stuff?
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