Career Advice: CMBS Analyst or Retail Real Estate Financial Analyst
I got two very different offers on the table, and I would like some advice on which one I should take.
The first offer is with a credit rating agency to monitor the performance of CMBS transactions on an ongoing basis. This includes the review and assessment of commercial real estate loan and property performance. Performing cash flow analysis for properties, and reviewing borrower and servicer operating statements.
The second offer is with a big multi-billion dollar retailer. The job is a financial analyst in the real estate department. I will analyze perspective new store investments, evaluate store relocation and renewal opportunities. Analyze new store performance for incremental sales and profit vs model assumptions.
My ultimate goal is go work for a Real Estate Investment or development company in an acquisition capacity. Which of the 2 jobs will have better exit opportunities?
Thanks!
ACQUISITIONS, DON'T EVEN THINK ABOUT IT
Would it be challenging to move a retailer to a real estate investment company?
One thing I forgot to mention, the retail job does not include market research/ initial site evaluation. This would be done by a separate role.
Remember working in the RE dept of a retailer isn't the same as aquisitions in a RE investment firm. Most likely you would be making sure landlords bill you the right thing, when renewals come up you may get a little involved but you would rely on the retailers broker to actually feed you market insight, research and locations. The majority of the job will probably be reading a ton of leases and making sure the landlord is abiding by the terms of the lease.
I see CMBS monitoring analysts at rating agencies move to debt funds or good debt brokerages all the time but I don't recall seeing one go to a RE firm (although I'm sure it happens). But I don't think I could do CMBS monitoring, although I've never done it, it sounds incredibly boring.
Thanks SHB!
Regarding the opportunity with the retailer. The role is actually on the acquisition side of the business, and not so much on maintaining existing stores. The retailer is opening 30-50 stores a year and the analyst will be in charge of modeling the various potential locations, and preparing presentations to the real estate committee to approve new store investments.
What do you think is a better opportunity for an aspiring real estate transaction professional?
It's not clear cut but the retailer sounds better... particularly if it's a big name company like Wal-mart, Inditex... I could see you doing that for a year and learning enough to lateral to a more real RE investment gig at a REIT or something potentially... the cmbs thing sounds very boring.
Is this an easy transition? I don't know how a REIT or REPE firm will look at experience from a retail company that leases all of their locations vs acquiring/developing them.
The credit rating agency experience will give me experience in market analysis, different debt structuring methods, and insight to a variety of property types and how each is performing over time.
While the retailer is much more heavy excel modeling experience, but the actual initial market analysis, site selection research, and any negotiations with the landlord/broker is done by other people.
^also, I'm guessing you're a fresh graduate?
I have one year of experience as a reporting analyst in an Asset Management department of a real estate investment company. I'm looking for an opportunity to move to something more hands on.
If your ultimate goal were to be in NY, work on Wall St, work in the bond market ... I'd say ratings agency hands down.
But that's not your goal. Without question, the retailer is better for you. Don't listen to SHB, it sounds like he didn't even read your post.
I would stay where you're at now. But if I had to choose between the two - credit rating agency. Although you'll be looking at things from a 30k foot level, so it's not as interesting as you may think. The other could lead you down a niche, and possibly non-real estate related path.
Could experience doing analysis on CMBS pooled properties lead to opportunities to join an equity or debt shop?
Sure, you're probably 22 years old so you're not pigeonholed into anything yet. It's not the best path, but with some networking, practice of technical skills on your own time, and if it's a well known respected shop, you'll figure it out.
What type of reporting are you doing and what property types are you involved in? Do these new positions offer a significant pay bump?
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