Which city is better for a career in Commercial Real Estate as a broker (in terms of earning potential) - Los Angeles or New York City? The goal is to obviously start my own Commercial Real Estate Brokerage sometime after college / necessary work experience.
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both are hyper competitive real estate markets. I'd recommend you go to the market you feel most "at home" and like the business culture and lifestyle. NYC and LA are very different in those dimensions.
I see, I guess I'll have to get a feel of what location is best for me then
Kinda curious.... sounds like you don't have a connection or prior history with either.... where have you lived or worked (like what kind of cities)?
For background, I'm from a large southeast city, worked in larger secondary city in southeast, now work in NYC area covering markets nationwide (including LA). The truth is you can have a really successful (even 7 figure) real estate in just about any legit city. TONS of people come to cities like LA and NYC, and clearly some do mega well, but unless you just have to be in one or the other, I wouldn't limit my search off the bat (assuming you have some freedom to move).
I feel as if neither will stop you from reaching your potential, both are large volume condensed cities that will always stay strong. The comparison is to similar on that level in terms of how much you will make if thats your goal. You’ll do the best if you are happy to be where you are with either one IMO.
That makes sense, thank you!
You'll make the most in the market the you have a niche in and fit in. Brokerage is very culture dependent, and if you don't fit in, you won't gain the client trust necessary to be successful no matter where you are. I know that for myself personally, I wouldn't find nearly as much success in either market mentioned than the one I chose because I fit my market perfectly.
Additionally, the old saying "riches lie in niches" is a major truth in this business. Working for established teams in established markets in competitive product types can yield some stability as a young gun, but it's a long slog (10-25 years) before you are the big dog and by that time, likely won't have the fire to start your own brokerage. Better path if you are hungry and entrepreneurial is to find a niche in your target market that isn't being exploited ruthlessly and exploit it ruthlessly. Your niche will also be highly dependent upon your personality type, so you'll need to think a bit about what interests you the most about commercial real estate and find your fit there.
Note that "making the most money" is not a niche or guiding direction you should rely upon for career moves at such a young age. Primarily because you can't know what will be the most profitable line of business to get in over the next 10-30 years. You might think that some particular market, team, or asset class that is crushing it today would be the best spot to be, but crushing it usually comes from an inefficiency in the marketplace that will get beat down over time due to increased competition.
Highly successful brokers generally have a highly entrepreneurial spirit and perspective. If you weren't one of the first movers in that market when it was new, then you will have a brutal battle against the established players in order to gain market share. Risk/return are fundamentally related, so if it seems obvious and profitable now then it's actually low risk and the returns should be lower. If it seems obscure, risky, or "out there" then it should be quite profitable to exploit so long as the business need/demand is there. Top brokers are always looking for niches and needs in the marketplace and add value wherever they can for their clients. "Find a need and solve for it" is at heart of entrepreneurship and the best and most highly compensated brokers are entrepreneurial people who do just that.
This is really good advice, thank you so much! I'm assuming my niche has to do with how I market myself so I guess I will focus on developing one that puts me ahead of my competitors.
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