Break into CRE LIED…
So I’m really confused, or not confused but bummed i guess. After following Justin Kivel (Break into CRE) on YouTube, I decided that I wanted to focus on CRE Brokerage at the top firms like JLL/CBRE/Cushman & Wakefield. I know they’re great places to start because of the amount of deals you’ll see either on IS or d/e but was expecting comps to be higher. From what I’ve seen especially because of the market rn, analysts aren’t making much at all. I was expecting high bonuses because of what justin said but it seems more like 10-20% of an already low base salary… even the exit opps don’t seem very great. Like going into a PE firm where you also don’t make much money until way later when you start getting carry. What should I do? Ik RE isn’t as institutionalized where people really stay in to be some desk jocky their entire career but what are your guys plans for making more money??
What markets are you seeing such low bonuses in? RE salaries are very market dependent if you're doing institutional IS in NY at CBRE or Cushman you will be compensated quite well.
I'm not from the US so I can't go into specifics but that seems really odd I've heard that Eastdil and other institutional teams (Newmark, JLL) in LA/SF are roughly the same as NY.
What salary amounts were you quoted? I'm not super familiar with entry level pay at brokerages, but I know from talking to people (i'm NYC based so consider that), that getting bases in the $70-90k range are not unusual, with min bonus of 10-20%, but the potential to get cut in on fees earned on deals in which you materially participated that could bring total comp up to $150-200K+ and increasing each year.
Clearly, production/deal volume matters TONS, and well...... that is about to get real shitty for many most likely (from all the buyside conferences/meetings I'm in, everyone says its here now, like buying is paused given price uncertainty, but that could be hyperbole and things do change). So possible that brokerages are reducing offers in anticipation of slow periods, be surprised if hiring continues on many teams tbh.
So, can't really say/defend Kivel (but have liked some of his videos), but this could be more market conditions tbh.
What are you hoping to make? Just curious to know what expectations you have.
Can't speak to brokerage hiring trends (I work for a large devco, we have roles posted, as projects have needs for people long-term regardless of daily conditions). I'd assume if deal volume falls for a team they would not hire analysts with fixed salaries tbh, maybe even need to reduce headcount depending on severity of slowdown.
All in comp around $100k is reasonable for sure in high-level sellside role in a HCOL. I'm pretty sure that is par/normal most of the time. But, I'd say the $60-75k base is not out of line, just that the "big" pay comes from the tip-outs on deals. Frankly, at $70k and 20% bonus that is $84k, that's really close to your $100k number and any small level of additional fee participation could get you there. If you are brand new to CRE... making $84k or even $70k at big name firm is something you should take all day long (unless you got better offers on table), the long-term ability to move around or up is huge and getting those roles day 1 is not easy.
i'm sure if times were good, same role would easily get above $100k, but they may be scaling back due to market conditions. If you graduate in May, could be better (or way worse tbh), but can't really guess. To be very honest.... I'd be worried about an offer made today being cancelled before you graduate. So, a solid role on solid team beats no job..... meaning.... this is not the best market time to overly rate a job based on pay. And as an FYI, general private equity is also getting its ass kicked... I'd suspect those folks to experience same deal on relative basis.
Might be tough, but brokerage activity moves with the market. Echoing some of the other posts. On pay, you aren’t going to make $1 million day 1. Even if you become a senior exec at some firms you won’t hit that as a lot of owners like to keep it for themselves. There are firms where a founder will bring you in as a number 2 early on or you go off on your own, really the two ways to really make money.
Also speaking to exit ops, what market are you in. Right now it may be tough because very few people are hiring, but you also have to use your UW, deal flow experience to connect with owners/junior acquisitions people on the other side (talk on phone, try to meet for coffee or a drink) and use your experience/embellish the good parts and sell a story. I ended up on the principal side from a shit firm, you can do it from a top shop even if it’s not a name you want. Just keep progressing you have a career of 30 or more years, it’s not a big deal if you work for a year more than a plan or have a setback for a year or two. You can work at any firm you want.
Those are super low bonuses for a top 3 brokerage - analyst salary is generally pretty shit at brokerages (a bit better in NYC) but the bonus is usually strong. What part of Cali are you in? LA/SF I'd think would be much higher on top teams, but if you're under a junior/weaker broker not so much.
What do you define as "not much money" in REPE? Yes its less than what people in PE on this forum are raving about but its not chump change. Once you hit VP/Director (whatever is more junior at your firm) you should be into the $250-300k+ all in range in major US markets ($175-200k+ in Canada).
Are VP/Director roles really paying so low in Canadian REPE? Seems low compared to what I assumed/heard
Depends on shop. Can be $300k+ all in at the big players but on average probably closer to 2
Who?
Have you actually received offers? Where are you getting this information from. All of those shops on any institutional team will clear $100k all in in tier 1 city.
Second this guys comment. Of course it is team dependent (besides Eastdil - they will be good pay and long hours no matter where you are) but on a decent team you will clear $100k. Base will be lower around 70k but should make up the $30k in bonus or points in each commission. On a very solid producing team you will easily clear $150k. You will work long hours on those teams though so keep that in mind.
It's going to be low as a complete entry level with no experience. But do a good job and build a good relationship with your team, you can really scale up your comp quickly. Now is a tough time too, not a lot of volume at the moment, I imagine most teams aren't looking to hire.
So what is the lie?
70k seems reasonable coming out of college - I started there for my first job. Jumped firms after two years and now make over double that.
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