I've seen a number of folks on this forum discuss transitioning from multifamily to the commercial side of the business (Office/Retail/Industrial). But does anyone have insight or experience about switching from ORI to multifamily in development, acquisitions or asset management roles?
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I did. Besides not using Argus as often not so sure if there’s any big difference.
If you are early in your career, less than 3 years, it's not hard to switch. You will probably lateral, like analyst/associate to analyst/associate. After 5 years, if you built expertise in a property type (assuming your role is property type specific), it will likely be sub-optimal to do so from a career perspective. I still would not say impossible.
That said.... many firms (and thus people), have added multifamily to their businesses due to the market demand. So, since you ask about going to MF, it is probably easier because many firms have literally done this in the past 10-15 years (like office/retail to 'mixed-use' with apartments). They usually hire multi-fam people to the team, but many often 'cross over'.
Consider that NAIOP is no longer the National Assoc. of Industrial and Office Properties... it is now the NAIOP Commercial Development Association. Why the 'rename/rebrand'... they wanted the apartment/mixed use developers to join and many traditional office/industrial developers (who were NAIOP) members started adding retail/apartment due to market forces (i.e... the mixed use trend).
Appreciate the insight - didn't even notice the change for NAIOP. Coming up on 5 years of full time experience in the Office/Retail sectors, though work on multifamily deals here and there. Currently work on the advisory side of the business, and strongly considering making the transition to principal. Definitely trying to find the roles that provide me with the opportunity to work on mixed use projects, rather than completely foregoing the knowledge I've built up on the office/retail side. Most of the roles I'm seeing in my market are focused solely on land development or garden style multifamily. Trying to gauge short-term visions of some of the companies I've spoken with to see if my commercial experience and connections could serve some purpose in their investment strategies, rather than accepting the past couple years as purely "modeling" experience...
When you say 'advisory' do you mean brokerage or consulting? or something else? Either way, I would just apply to all the positions that interest you, network the same way. I don't think you would be 'siloed' as the term goes, you are not sounding like you are at all fixed to some property type.
As for principal roles and getting 'assigned' or fixed to asset class that really can vary a lot by firm. Some structure where teams are totally dedicated to one asset type and don't deviate (larger the size, more likely this is), also more common in investment mngt type firms. I'd say developers need to be more nimble by nature (that is the case at my firm), so you could be on a multi-family project and then an office one (or vice versa or whatever) just based on needs at that time. Still, we have people who are clear specialists in one product type and will generally avoid being swapped unless 100% needed.
The way to think of this is that "investors" are far faster and find it easier to just jump around markets they like to buy the assets they know, developers gain localized knowledge and then need to 'adapt' to the market. Hence why so many developers became "mixed-use" developers over the last decade, but REITs and other institutional investors didn't really organize or anything.
I also switched from office development to multi development. What insight are you looking for?
Thanks! Coming up on 5 years of experience in the office/retail sectors - currently on the advisory/service side. I'd like to be back on the principal side, working on developments, in particular. However, don't want to work on garden-style multi deals my whole career. Would enjoy working on urban multi projects, but I like the office and retail side of the business. Hopefully that background helps set up my dilemma and why I'm asking for insight...
If I'm able to secure an opportunity as a development associate working on garden-style deals, is that experience working directly in development (at this stage of my career) better than continuing building relationships on the advisory side? Realize this is a subjective question, but really trying to determine if any development experience is greater than limited experience? Or will the relationships built within the specialization (office/retail) prove more beneficial in the long-term. If you've read this far, thanks again!
I've worked in development groups doing both (sexy core urban office, suburban garden multi). The reality is that you will significantly strengthen your development skill set doing either. While the core urban deals involve more intricate concepts (urban zoning impact on architectural design; construction means and methods; legal agreements/easements), you will still be grinding through the same core functions at both. IMO, experience with development execution is one of the least common resume tracks in RE--the sooner you do it the better, if principal side deals are your end goal.
I started my career in multifamily with Fannie Mae then moved over to a lender doing multifamily loans. When trying to switch over to commercial (ORI & hotel) it was very hard to break in as firms were not dealing with MF as much then so did not get as much recognition. Eventually Hooked up with a lender as an asset manager and then years later when exploring more opportunities the door was much wider to go to MF or ORI.
So I’d say that going from ORI to MF “MAY” be easier as long as you have done some MF deals and can talk about it. They should like your experience with Argus (even though they never uses) they will know you have the knowledge to do the spreadsheets and financials necessary.
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