Developer layoffs

Hi all, I recently got hired by a major developer in a large southeastern/southwestern market (greystar,mill creek, tcr). Given the impending economic headwinds how in danger is my job. I’m starting out from undergrad with very little experience.

 

No one here can predict the future. Real estate in the southeast/southwest isn't going anywhere, but that also doesn't mean that companies won't get spooked in the short term with volatility. I personally think all of the doomposting is PTSD from the Great Recession, but it's also undeniable that the current situation is having a negative impact. All you can do is show up, do the best you can, and take moments as they come. 

Commercial Real Estate Developer
 

Does your office have non-development fees coming in, I.e. a healthy stream of asset management / property management fees to support choppier development management fees? If they do, I’d be less concerned about job safety. If they don’t, do they have a couple of developments underway which will provide DM fees for next 2-3 years? Should still be pretty safe as long as the office isn’t bloated with development staff.

Analysts are relatively cheap and not a smart move to fire, when the situation improves you need juniors to churn out models / memos etc on new opportunities to rebuild pipeline. The level I’d be most worried about is mid level staff who don’t have live developments they’re needed on and don’t have a pipeline of opportunities which look likely to convert into closed deals.

 

In addition to what was noted above, if you’re on a project, you generally can’t just get fired. Assuming the firm is not overstuffed, and the economy goes into a recession, you’re project still will need to be built. In some way, development is insulated from volatility if you are in the middle of a project. Now, once your project is finished, if there is no other project, that’s a different question. But in short term volatility assuming you’re not overstuffed, you should be fine. 

 

A couple of things: (1) make yourself as useful as possible - the more things you are a part of, the more valuable you are; (2) as others have said, you are cheap and not a great place for a company to look for cost-savings. Your $50-60K isn't going to be the difference between the company going under or not. All you can do is focus on #1. Find ways to add value as best you can. 

 
Analyst 2 in RE - Comm

Hi all, I recently got hired by a major developer in a large southeastern/southwestern market (greystar,mill creek, tcr). Given the impending economic headwinds how in danger is my job. I'm starting out from undergrad with very little experience.

Just do your best to make yourself useful and valuable and don't worry about it.  What is the alternative?  Worrying about being laid off before your firm has even said they'll let folks go is just masochism.

 
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