Starting Salary Trends for Analysts and Associates

I’m in commercial real estate and have been curious about trends in compensation for incoming analysts and associates. From what I’ve seen over the past year or two, starting salaries have not kept up as much as I would have expected given the demand for these roles and the number of qualified applicants entering the industry.

For those in other sectors, have you noticed similar dynamics with starting salary growth in your fields? I would be interested to hear what people are seeing across industries.

3 Comments
 

You’re asking the real estate forum, all of whom presumably work in or want to work in real estate, about starting salary trends for other industries? 

...but is it REPE?
 

Based on the most helpful WSO content, here are some insights into starting salary trends for analysts and associates:

  1. Investment Banking Analysts:

    • In 2017, first-year analyst compensation (base + bonus) averaged $121,000, increasing slightly from $114,000 in 2015.
    • By 2018, this figure rose to $126,800, reflecting a steady upward trend in starting salaries.
  2. Investment Banking Associates:

    • Associate compensation increased from $211,000 in 2015 to $218,000 in 2017, and further to $223,000 in 2018.
  3. Commercial Real Estate Analysts and Associates:

    • Compensation varies significantly based on the type of firm and location. Analysts typically earn a base salary in the $60,000–$80,000 range, with bonuses of 15–20% or more.
    • Post-MBA associates often see base salaries in the $110,000–$130,000 range, with higher bonuses. Some senior associates without MBAs can earn closer to $250,000 all-in, though this is not the norm.
  4. Real Estate Private Equity (REPE):

    • REPE shops tend to pay slightly better than developer/operator shops, with additional earning potential through promotes and advantageous JV deal terms.

While investment banking has shown consistent growth in starting salaries, commercial real estate compensation appears more variable and dependent on firm type, location, and market conditions. If you're noticing slower growth in CRE, it could be tied to these factors rather than a broader industry trend.

Sources: Life in Acquisitions (Analyst/Associate), https://www.wallstreetoasis.com/forum/investment-banking/2017-investment-banking-report-8-key-trends-to-know?customgpt=1, 2017 Investment Banking Report: 8 Key Trends to Know, 2018 Investment Banking Report: 8 Trends in the Industry

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

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