CRE Research - Bad career path?
Got offered $70-80k + bonus to sign on with a global brokerage firm (JLL, CBRE, East Dil, Cushman, etc.) in the Southwest US as a research analyst.
Strong interest in investment and development but am also interested in research as well.
My question: How hard is it to recruit for buy-side firms after working a research role at a top brokerage?
Is research a good role to be in if someone likes to have a general understanding of the market? Can you easily leave if you have prior buy-side roles? My rationale for even considering this offer is to have a better understanding of my local market
Used to recruit for IB. Sell side research was generally not favored among the large institutional shops I talked to.
Was wondering if the same concept applied to RE.
Is brokerage shop research respected? Curious.
My understanding that research teams in IB are very firewalled from the IB/deal teams for legal/regulatory purposes (like part of SOX legislation I think), so IB research is more middle to back office. In CRE, where there is virtually no regulation (any 18 y.o HS grad can get an RE lic, and that's only needed at brokerages!), research can be very client facing and thus very front office. On the buyside, research often spends a lot of time with investors/cap markets and is very central to leadership and strategy discussions.
Thus, I'm not sure so comparable with IB sell side research (I've never worked in that, so not so sure).
My last job was at a big valuations (cre appraisals) company and it was mainly argus/research. I parlayed that into an acquisitions role at a reputable firm.
I’d say just learn as much as you can, gain exposure, and really convey your goals and intentions when moving into the field of cre you want to be in.
It’s not bad, just know your plan.
So, before I give my thoughts on your question.. have to drop a major "caveat" about "research analyst" job titles at the big brokerages...
- This title can be found on production teams (like IS and DE teams) as essentially a very junior member (almost more "marketing"), a member of the brokerage's core research team (I think this is what you are implying in the post, OP), or even a junior role in the valuations department. (I am making the assumption in context you are not talking about any of the buyside firms owned by the parents of some of the large brokerages, CBRE GI and LaSalle for example, as that title exists there in a few capacities as well potentially).
So, be sure to be specific about whom/where you will be working. To answer your direct question, I'm going with the member of core research team (likely with a regional/market focus, and possible in a regional market as opposed to HQ/central office). If different, say so!
My thoughts on your main question -
- Research/strategy teams at buyside shops often look to those in these such roles at major brokerages, it is probably the most direct (dare say easy) jump to buyside you can make from these types of roles
- At many of the big brokerages, these roles (specifically the junior "research analyst" title) get tracked in an "up or out" format... meaning, if you aren't or don't want to be promoted within the research team (which can be competitive/difficult), you can (sometimes very easily) jump to an actual production team as broker or other form of analyst. Thus, this job can be a very direct path to being on a top IS/DE type team.
- Depending on the role/firm, these positions can be (or quickly in career path) be very client facing. Brokers bring the research team on pitches and you may be expected to present to prospective clients. Thus, "research" is quite "front of house" in a lot of brokerage houses (and buyside firms as well). This is usually an "earned" duty, you must be good at presenting, seem trustworthy, etc. for them to "let" you get this duty.
If to the direct question... yes, I think it is fairly reasonable to make the jump to buyside from these roles. It's fairly common. In order of "fit" easiness I think you go to buyside in roles of 1. Research/Strategy, 2. Capital Markets, TIE Acquisitions. and 4. Asset Management (that's my subjective view, in truth, you are probably moving to a junior role within a buy side firm, so it's probably more open field). Development also feasible. Clearly, it's up to you to learn/practice and thus prove excel modeling and other skills that you may not do on a day to day basis, but you other skills easily make up for this (excel modeling is actually a low level commodity skill, just one tested at entry so it is what it is!).
Final point..... Only in "WSO" land do non-standard paths like research get potentially tagged as "bad career paths"... There are many CEOs, CIOs, fund managers, big time brokers (even a few brokerage CEOs), who came up via the research/strategy route. These are very front-facing roles to senior management, clients, investors, and even the industry/public (do a lot of keynotes/econ updates, etc. if you are good speaker). Clearly, to do well in this path (like any path) you have to like it and have certain skills that differ from the norm. So, your personal fit matters a lot.
This has been my "world" (research/strategy and consulting) for almost 15 yrs now, and I can honestly say it has fast tracked my career in ways that had I gone a "standard" route I don't think would have gotten me as far as fast. But that is hyper personal and very YMMV!
Thanks for the insight redever, you pretty much hit the nail on the head (as per usual). I am a research analyst at one of the major brokerages in the Mid-Atlantic. I have been in the role for ~7 months as this is my first job out of undergrad. From my experiences so far, my role has surprisingly been client facing as I go on pitches, present on building tours to a prospective tenant, and my team has spoken as a key note speaker at a local NAIOP event with one of our global economists. I have had some people reach out on the institutional side and ask me questions/say they have been tracking the reports I publish. For my first job out of college, I've been pretty fortunate and have been getting great exposure. I have gotten a three offers from regional REPE/IB firms recently (caveat: we're in a labor shortage) but turned them down because I'm interested in the sell side/want to become a broker a year or two from now. Feel free to PM if you have any additional questions!
mef curious for the benefit of all.... were the offers from the regional REPE/IB firms also in research? Like laterals of sorts? Or for other roles (like acq or whatever!)
apologies for the typos - long day haha
Think wso deleted my comment so reposting. So these were all analyst roles - one was for private equity as an analyst in middle-market real estate, one was actually for an associate role at a private equity firm geared towards the institutional side (would've been out of DC or Philly), one was a research analyst role for a venture capital firm, another role was in valuations based out of NYC.
I think it helped with my company's brand name as well publishing reports with my name on it.
Currently in an MSRE program where one of my professors is head of research at a large RE company. He has intimated that his job is very client facing/conference oriented, but he’s a senior guy. Not sure what the junior levels would be like.
Junior levels here are like any type of junior level, all depends on the needs of the seniors and the firm itself. A easy item to point out, if the senior crew is flying around to clients, investors, conferences, etc... the junior people have to do all the grunt/prep work, respond to the inquiries from those people (and the internal firm clientele). Ask your professor how much of the slide decks/research he presents at conferences he prepared himself... give you a good idea of one task!
Long shot of an guess but is it Ian Anderson?
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