Does it suck? Weighing the transfer from finance to a very tiny CRE brokerage shop.
I don't know much about brokerage. I would be asking property owners to sell with my company and buyers to buy
I suspect apartments & obviously office space are in for a wild ride in the coming 4 years but can't definitely prove this
I have a touch of asperger's and ADHD--the latter of which I've been told is useful for sales
Fire away or DM please
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If you move to brokerage move to a well known shop if you can. A small shop will very rarely have the same resources and overall reputation. Try to join a team at a larger brokerage shop for better deal flow and exit ops.
Agree that a big shop is definitely more ideal, simply because of dealflow and name recognition - bigger shops have got more people/larger shops that know them/will approach them to market a property. Additionally, institutional sellers like to go with known entities for their large sales for obvious reasons.
That said, there is certainly a market for smaller brokerages in smaller cities. Large cities have large deals that want large firms but smaller cities with smaller sellers and smaller deals where you can compete and they like the personal touch.
As far as dealflow, it's slowed down as brokers figure out where to price stuff, but like Brookfield said today there's still sellers and still buyers on good, reasonable deals. Lots of big firms are pencils down right now, but we're pursuing deals and it's tougher to find debt but we can still execute.
All this to say, it's tough especially at a small firm but really depends where you want to live and whether you're enough of a self-starter to cold-call and attack every angle to get an edge on the big dogs.
Agree. Deals are still happening at the end of the day, however harder to find a spread. I have no first hand experience working in brokerage, however i would think that ff you are trying to break into brokerage, this might be the best time as the smaller markets will most likely see more activity, and when rates go down or sellers accept the market fundamentals and prices lower, you could move to a large market when transactions pick up and you have some experience under your belt.
bumped
CRE brokerage is great right now. 2021 was a record year and the first half of 2022 already exceeded all of 2021 in terms of transaction volume and fees. What’s the problem?
Lol what?
if you don't think things will slow down substantially with where capital markets are at, you have zero foresight lmao
LMAO deals are barely getting done in Miami right now. If you think the market is good right now you're either working on tiny deals or have no clue what is going on.
Yeah this guy is 100% working with SBLs lmao
Nothing I said contradicts any thing you are saying. Just a different perspective. But please enlighten me on where you wise keyboard warriors think transaction volume is going.
if you're the guy from above, what exactly do you think drives transaction volume? The fed is raising rates, this will mean higher cost of capital, which in turn means less new development and less acquisitions. Also, big banks are reducing exposure to certain asset classes because of macro-economic uncertainty: the largest CRE lenders are barely doing any new business, if any, right now and for the foreseeable future (hopefully just a couple more months) it will stay this way. 2021 and the first two quarters of 2022 were record years for these lenders as well. This is a cyclical business.
Here is what I think. Keep in mind this is strictly talking multifamily. I think it’s going to be a bit of slog the next quarter or two as broker pipelines have slowed down (maybe disappeared for some) due to the pricing reset that occurred during Q2 of this year. However, there remains a huge amount of capital allocated to MF and while many players took a pause the past few months, we are already starting to see signs of stabilization. Yes, there are not as many lenders as a few months ago but that’s the beauty of MF…the agencies step in and keep things moving. There is decent debt available making it possible to get deals done. Bidder depth is not where it was in 2021 or first quarter of 2022, but it’s more than it was the past couple months. Selling at a 4% cap is not as good as a 3% cap, but it still far exceeds what investors underwrote exit caps at when they bought. We are already seeing BOVs begin to pick back up. Buyers and sellers who are willing to trade at a fair level are getting things done. In my opinion, the more deals that close and help the entire market understand what the new “normal” is will speed up the return of everyone else with cash that they are dying to get deployed. It’s not as bleak as some are making it. Can’t speak for office, retail, etc.
Over the last few months I've seen countless deals either be pulled off the market or re-traded significantly. Anything that has closed has either been all cash (KKR buying Atlantic Yards in ATL) or buyer had debt wrapped up already prior to all these hikes.
Now I'm speaking specifically to deals ~$35MM and above, in the Sunbelt region, but I couldn't imagine its any better elsewhere, in fact if I was a betting man I'd say its worse.
$35mm and above. Wow. You must be a real estate god.
OP here: "sunbelt" is a MASSIVE swathe of America
Is it really that bad in, what 40-50% of all commercial property markets? : P
Also I am a nub
I was referring to you
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