Hey all,
I was curious to the differences between joining a smaller brokerage starting off in CRE as compared to a CBRE or JLL type. Is it the difference between you having a shot at succeeding and not having a shot? What really matters starting off?
If this is your first job out of undergrad, the brand name of the company you work for lays the foundation of a strong resume. This first job does not have to necessarily be at a pedigree firm (I generally think students are too obsessed about this) but it is beneficial to work at a place where the company's name is known within the industry. This makes moving up in your career easier because future employers will give stronger credence to a company they know and make positive assumptions about the quality of experience and training you received.
Also working at a known shop will allow you to gain exposure working on larger sized deals. At smaller, local firms, the deal sizes may be small and non-institutional. The quality of your underwriting experience will be lower.
You can always go work for a smaller shop later in your career when you are established and ready to work on something more entrepreneurial.
agreed. I'm currently in b-school and everyone I've talked to says to go to the largest, most institutional shop you can as you'll have more mobility. It's more challenging to go tiny shop to brand new firm.
I made a thread not to far down here about boutique brokerages (in NYC not sure where you are). There's a few reputable boutiques but most seem shady as hell and many just do mom and pop type deals. Bigger is always better when straight out of school from what I have heard. A guy with CBRE on his resume even without much deal flow is going to cross the eyes of employers more so than some small shop doing 5M deals out in the woods. The industry is so small and everyone knows everyone. If you are going to go small I would do a lot of research on the firms reputation in your area.
Do not, I repeat do not turn down an offer to a larger firm to take a position at a smaller one.
Joining a small firm has easily been the biggest hindrance to my success post college. I regret it completely, I work almost entirely alone and lose out on deals simply because it is just me versus a team over at CBRE. Big is where you want to be.
What if the offer is a draw vs pure commission first year? How hard is it to monetize and jump from smaller company to larger one in same area?
I think it really depends on the firm and what you are doing. A Friend of mine was 19 years old not in school and brokered a debt and huge capital markets deal between a small private developer, a large top 10 REPE firm and A high yield debt fund cradle to grave as his first deal. That type of experience wouldn't happen at a place like CBRE or Cushman, you have to pay your dues as an analyst and move your way up. At a middle market or smaller firm you could be killing it right of the gates if you know what you are doing and make 7 figures in commission within the first few years. I think its defiantly a different path then working you way up at a big shop but if you're a producer at one of these small shops. you can defiantly make money and if you have a ton of experience at the deal level your exit ops are better than most. IE start your own shop, come in on the director level somewhere else, Start doing syndication as you have access to a lot of off market deals, or work in REPE. One thing I can say is that in most of these shops 25% of the people make 75% of the commissions and you find out very quickly which part you are in.
I agree "big brands early in your career opens doors." This was said to me 8 years ago and the person was right.
Later on, small brands that you can grow into big brands start to grow on you.
What about spending one year at a firm and then making the jump? Is this not wise? How hard is it to monetize your business?
If you are young and the job is one of your first, I think a one and one (like 1 year and 4 months) stint would be ok. Don't do too many of those but it's more common with young people these days. My first job in audit, I stayed exactly one year.
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