Is Chicago REPE opps shrinking?
Comparatively seems like a lot less opportunities in Chicago vs other major markets like NYC, SF, and Boston. Of the shops out there, a lot of them specialize in like multifamily,industrial, seniors or medical (with the exception of a few of the big guys like a Heitman, LaSalle, Walton or Harrison).
Also, the pay disparity between Chi and other markets is crazy - yes COL is better but still comp is 2/3x higher in coastal markets (not thrown arbitrarily out there, have the data points)
Seems like for Chi the opportunities and upside are just way more limited
Based on the most helpful WSO content, your observations about Chicago's REPE opportunities and compensation trends align with broader discussions in the industry. Here's a breakdown:
Market Size and Specialization:
Chicago's REPE market is indeed smaller compared to major hubs like NYC, SF, and Boston. Many firms in Chicago focus on niche asset classes such as multifamily, industrial, senior housing, or medical real estate. While there are larger players like Heitman, LaSalle, Walton, and Harrison, the overall market lacks the breadth and diversity of opportunities seen in coastal cities.
Compensation Disparity:
The pay gap between Chicago and coastal markets is a well-documented issue. While Chicago's cost of living is lower, compensation in NYC, SF, and Boston can be 2-3x higher, particularly at the top firms. This disparity makes coastal markets more attractive for those prioritizing financial upside.
Opportunities and Upside:
Chicago's REPE market does appear to offer fewer opportunities and a more limited upside compared to larger markets. The city's focus on specific asset classes and the smaller scale of many firms contribute to this perception. Coastal markets, with their larger deal flow and more diverse asset classes, often provide greater career growth and earning potential.
In summary, while Chicago offers a more affordable cost of living and opportunities in niche sectors, the overall market size, compensation, and upside are more constrained compared to major coastal markets.
Sources: REPE vs REI, Differences between CRE vs REPE, Why do so few go into Real Estate?, What is your compensation in Real Estate Finance?, Info on Chicago REPE Firms
Yes, CHI is not the place to be rn
2-3x is not realistic.
Chicago REPE is a ~25% cut unless you work at trash heitman
Analysts northeast for a good shop up to low $200s
Associates 300-400+ (475 highest for 3 YoE)
No hate on Chicago as a city, but as an investment market we've had it redlined for years and we're far from the only ones...so yeah this tracks
Has nothing to do with institutional firms hq’d in Chicago
Bumping this thread. Curious to hear how Chicago firms are doing / any updated insight on some of the firms mentioned.
Trash. Anything good I’ve seen has been in NYC.
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