I am currently a civil engineer making about 88k all in and was looking at jumping into CRE as a analyst. I was looking at a couple of MSF or MSRE programs join so that I can make the transition.
My question is what comp can I expect as an entry level analyst ( base plus bonus ) and what is the pay progression in the industry like ?
Depends on the market you are in. In a LCOL market you could expect maybe like $75k all in ($65k base with a bonus of about 10-15%) but in NYC/LA you could realistically expect about $90-100k all in ($85k base with 10-15% bonus) for an analyst. Associate is looking at about 125k and 150k respectively assuming you receive raises each year as an analyst and spend 2-3 years as an analyst before moving to associate. From there you get into the VP/Director level depending on company structure and the comp widely varies because some companies give carry at this level and that can mean your annual comp shoots up drastically. This is also the level that your comp comes pretty heavily from bonuses so a base salary of $175-200k roughly could end up being 500k+ annually if you have carry and large bonuses or it could be 250-300k total.
The pay bump does/should get more noticeable later in your career as you start making decisions and leading deals. The early on isn't as attractive as some engineering/tech/traditional finance jobs but definitely picks up the later you are. The numbers I gave as an estimate are for acquisitions, asset management will be slightly less and the further away you get from deals the less you'll be paid.
These numbers are stale and extremely low. For NYC/LA any PERE 100 will pay around 140-150 all-in for analysts 1 these days (80-95 base and at least 50% bonus). AM is obviously leaner on the bonus. Numbers are similar for any institutional brokerage team.
You can talk to any recruiter to verify. Associate bases start in the 125-150 range. If you aren't getting above $175k all-in as an associate you are grossly underpaid unless you're in development which I've noticed pays less in the junior years relatively.
Wow, this is surprisingly high
Is this post COVID and post decades high inflation market rates?!!!
Sounds too high for a associate but I don’t have any solid numbers for reference.
Maybe yours were for mega shops with 100bn+ AUM, and 70+ hours
Thanks for the insight, is it worth getting a Master's to get in these roles or am I better of just trying to apply and network my way in ?. Is it really possible to lateral out into say PE or IB from it or is the industry more rigid ?
The pivot to a development shop might be the most accessible, given your civil background. Depending on how many years of experience you have as an engineer you might end up making a lot more money off the get-go going that route rather than REPE if you pursue Dev PM-type roles. Would still recommend MSRE/MBA as a rebranding tool and going in as an analyst if you want to pursue the finance track vs. a Dev PM-type track.
To answer your question - as far as comp goes you will make much more money long-term in real estate than you will as an engineer (assuming you do not get partner tracked into some sort of ownership, even then you'd make more money in real estate as a partner than a consulting engineer).
Consider your market and what development is happening there. If it's in a booming development phase, there are likely developers who would love to bring in an engineer who can handle the development management duties. This would probably get you an immediate pay bump compared to engineer/consultant comp, and gives you a path to "getting in" with a developer to learn the business, learn the financials, learn the process...without paying lots of money on a degree. I've seen many do this (architects, engineers and construction project engineers/managers) who went on to have great careers in development without the degree.
If you're looking for more of a finance role instead of a development role, I would recommend doing the MSRE or MSRED degree.
Data point #1: my undergrad was in architecture. I am now 5 years into a development career.
Data point #2: A fellow friend from my arch school undergrad class went on to do her MSRED. When she graduated, I was already working for a reputable large-scale regional developer in the market/city she wanted to move to, and I helped make introductions to other developers, network, etc. She got a great gig with a good company and I'm happy for her. However, I know this city/market/developers/etc well, and I would place a high probability on her getting either that job or another similar job, even without the degree. Developers building mixed-use mid- to high-rises tend to like architects and/or engineers as development managers or at least preconstruction/project managers. At least this was the case in my city. There's typically a path to rise in ranks as well...into Director, VP, etc. Depends on the developer. That said, she would definitely not have had much luck trying to get into a REPE or more finance-heavy role without the MSRED degree.
Data Point #3: through ULI, I became friends with a civil engineer who wanted to get into development. He networked his way into a development management role with a name-brand developer in Chicago. Everyone would recognize this company. No real estate degree.
My overall point is: understand what's happening in your market so you can try to discern whether there's a viable path to get to a development role without the degree. Then, join industry organizations (like ULI, NAIOP, etc), network in your target city/markets, and try to make it happen.
Best of luck! Go get em.
I'll add another comment. I'm in a very LCOL city. Last year, I was looking to hire a Development Analyst with a technical degree like the one you have. All-in comp for that role is the same as what you're currently making. However, this is the bare minimum comp at my firm. The movement upward from analyst to manager to director and VP is something like $85k > $140-150k > $175k > well over $200k+. At the VP level, you start getting carry and part of the promote. Beyond that is SVP, MD, Partner, where your pay really ramps up because it's tied to the performance of the projects. Promotes on our projects is typically $8M to $12-15M. Not sure if this is similar to others / typical of the market, but thought I'd provide this anecdote.
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