Commercial Real Estate in Boston
I am currently finishing up my last semester of junior year (Finance Major) at a university in Philadelphia (think Villanova/Drexel/Temple) and I have recently received notice that my internship in Corp. Finance at a F500 company in NYC has been cancelled due to COVID-19.
With this being said I have taken this time to explore other possible career paths and I have found myself constantly exploring the RE forums on WSO. While I have fairly limited knowledge on this specific industry I have the most interest in CRE (specifically development, possibly for multifamily or office) in Boston or the greater Boston area. It appears that many users have already confirmed that it is possible to make the transition from Brokerage to a Development shop.
My main questions are:
-Being that networking is geographically challenging being 5-6 hours from Boston, what are some ways to still effectively network with professionals in that area?
-What are some of the keys to making the transition from Brokerage to Development?
-What are some other typical (as well as not so typical) career paths to becoming a developer?
-Who are the major players in the Boston/NE area for Brokerage and/or Development (outside of CBRE/JLL)
I appreciate responses to any or all questions asked. Stay healthy during these times!
The simplest way to network in a market that is distant to you is via the alumni network. I would just search LinkedIn for CRE/development and your university, I'm sure they will have a presence in Boston that is significant.
The other 'easy' way is via memberships in groups like NAIOP/ULI, etc., you can join in one market and usually able to search the national membership directory. Members are likely to take fellow members calls/emails more openly and that is technically a 'warm call' than pure cold call. Plus members may introduce you to other members if you ask.
Boston is a small town where everybody knows everybody in the industry. This, combined with significantly less transaction volume makes it a tough market to break into as a young gun. Any reputable shop will take you on as an analyst and have you grow into the brokerage role. Sure, you can go the M&M route and dial for dollars but the odds are heavily stacked against you, especially in today’s world...
True, every market is difficult to start in but you don’t see nearly as many young brokers as you do in NYC making a killing in the Brooklyn and Queens. Just not as many buyers and sellers in the market I would assume... personally, when interviewing in Boston (think CB, CW, NKF) I was told straight up that I wouldn’t be running deals until 2-3 years in.
That being said, Boston has been booming for many years now and I expect it to be better insulated than other markets given the heavy health and life science presence. Like someone else mentioned, there’s a high concentration of independent/boutique shops, wether it be in the brokerage or principal.
You're certainly not the first user on the RE forums to mention the challenges associated with starting a career at M&M. I feel that it is in my best interest to avoid shops with similar mentalities.
Outside of the larger firms such as NKF or CBRE, are you familiar with any MM firms or boutiques in the area that practice the 2-3 year analyst stint before transitioning to more deal oriented positions? It seems this provides the most practical learning and exposure to the industry.
There are so many RE investment/development/brokerage firms in Boston. My advice to you would be to use Google/LinkedIn/SelectLeaders/Indeed/Glassdoor to track down every possible firm you can with key words like "Real Estate, Investment, Analyst, Acquisitions, Brokerage" etc until you have a list of 50+ names and then go back to Google/LinkedIn again to start tracking down alumni within those firms to reach out to.
Also, while you are correct that there are significantly more CRE finance opportunities in Boston than Philly, I would recommend you network in Philly too, especially if you like the city. 1) because maybe you do get lucky and get a good gig there and 2) maybe you don't, but the people you network with can connect you with people in Boston. Would not be surprising at all for some alumn at a CRE firm in philly to not be hiring but have a friend in Boston they can set you up with.