Looking for a bit of guidance. I am currently an underwriter in CRE and I would like to understand what fair compensation should be. I really just want to gauge the market and see what others in CRE are making working in the same/similar roles. I'm a little over a year in, and I genuinely enjoy what I am doing, however I feel I am grossly underpaid for what I do. Really just trying to find some answers at this point.
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Based on the most helpful WSO content, understanding fair compensation in the commercial real estate (CRE) sector, especially for underwriters and project managers (PM), can vary significantly depending on several factors such as geography, company size, and the individual's level of experience. While the context provided doesn't specify exact figures for CRE underwriters or PMs, we can infer some insights based on related roles and general industry compensation trends discussed within the WSO community.
For someone with a little over a year of experience in CRE underwriting, it's important to consider the following:
Geography: Compensation in CRE can vary widely by location, with major financial centers like New York City, San Francisco, and Chicago typically offering higher salaries compared to smaller cities or regions.
Company Size and Type: Larger firms or those with a significant presence in the market may offer more competitive compensation packages than smaller, boutique firms. Additionally, the type of company (e.g., a global investment bank vs. a regional real estate development firm) can influence salary levels.
Experience and Role Complexity: With just over a year of experience, you're likely considered to be at the entry-level or just beyond. Compensation growth in CRE roles often correlates with gaining more experience, taking on more complex projects, and demonstrating a strong impact on your team and projects.
Market Trends: The CRE market can be cyclical, and compensation trends can reflect the overall health of the real estate market. Engaging with the WSO community, attending industry networking events, and staying informed about the latest market reports can provide insights into current compensation trends.
Negotiation and Performance Reviews: If you feel underpaid, preparing for a salary negotiation or performance review by gathering data on comparable salaries in your region and industry can be helpful. Documenting your achievements, contributions, and any additional responsibilities you've taken on can strengthen your case for a salary adjustment.
While the context doesn't provide specific numbers, the average compensation figures for investment banking roles listed (e.g., Analysts, Associates, VPs) can offer a rough benchmark for high finance roles, though CRE underwriting may not align perfectly with these figures. Engaging in discussions on the WSO forums, particularly in threads related to real estate compensation, can provide more tailored insights and advice from professionals in similar roles.
Remember, compensation is just one aspect of job satisfaction, and growth opportunities, company culture, and work-life balance are also critical factors to consider in your career journey.
Sources: To all the commercial real estate brokers out there...how much money do you make?, The Real Estate Job Hunt - How are people doing?, What is Investment Sales in Commercial Real Estate?, 5 Things that Determine Your Success as a Commercial Real Estate Broker, Jobs as a Commercial Real Estate Appraiser Suck?
It depends. Banks pay different than debt funds which pay different than agency. Also need to know how much experience you have. If you’re literally a year out of college just be glad to have a job and learn as much as you can.
How much does Agency pay at the senior levels? Higher or lower than banks?
Currently work in the New York market at a relatively large commercial bank. Every deal I work on is over $10mm.
What’s your level and the complexity of the deals you’re working on? I’m a PM/UW, based in a major East Coast market working for a bank based in the south: promoted to VP last March, I make $150k and got $35k in bonus. For my level, the time I put in, and where I live, I feel I’m underpaid. Been looking, but there’s not a lot out there right now.
What market do you work in and how many years of relevant experience? Really makes a difference, but if the answer is New York then yes you're lowballed. But you're always going to have less comp being promoted from within.
I currently work in the New York market at a relatively large commercial bank. Every deal I work on is over $10mm. Really trying to gauge what adequate pay is for entry level positions and what pay a year into working should be.
What types of deals are you underwriting, is this your first job out of college, are you truly underwriting deals on your own, or are you functioning in more of an analyst support role capacity? I suspect that latter given your experience.
You did not indicate how much you are actually compensated, so I cannot comment on whether you are underpaid or not, but as a first year underwriter without prior experience I would not expect to be making more than $100k. If you are making something like $40 or $50k, then yes in New York you are grossly underpaid.
For what it's worth I started as an analyst at around $90k 8 years ago, but I had prior experience and I was not fresh out of college. My compensation as an actual underwriter has varied between $150k - $215k depending on the year.
All deals I underwrite are well over $10MM, and I am underwriting deals by myself and not acting as an analyst in a support capacity. This year alone I underwrote 6 deals altogether totaling around $70MM, and I personally closed 3 out of the 6.
If they are stabilized multifamily there is very little complexity and honestly man $70 million isn’t much as an underwriter. Candidly you’re going to have a hard time making real comp in CRE as an underwriter or in credit. You either have to take risk or get into a revenue generating role.
Similar UW/PM position at a bank in NYC. Compensation should be $85-100k base and up to 40% bonus. First-year analysts at my firm make the higher part of this range. So for a second year, a 5% increase in base pay with the same amount of % bonus.
In this market too there are people taking cuts with 3-4 years of experience and getting $10-20k above the $100k mark or even getting less than $100k base and just happy to have a job. Many people are getting laid off if they haven't been in the last 3-4 months and it would be ridiculous for a first year analyst to complain about being underpaid $5-20k right now. Just deal with it and don't be selfish when looking at your company. They're a bank which could be heavily MF having alot of trouble to keep groups from defaulting most likely (this applies across asset classes). Would be insane for a 1st year to complain about $x a trivial amount to be honest when the firm could potentially go under and there have been banks in NYC that have. Judging by the $70mm UW over a year it's a smaller bank too so would just keep my head down and work.
Totally agree. Just sharing a data point from what I’ve seen at my firm. Also, you are correct about people being happy to have a job in this market. My team recently hired somebody who lost their job due to the bank failures last year. They don’t make as much as they did at their previous firm, but they are just happy they found something. Not sure why you think I'm selfish/complaining.
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