Is your firm having a tough time hiring?
Not sure if you have postings for analysts or associates, but for us it feels like this Great Resignation has started to hit us. We have gotten several applicants apply but they have zero experience.
Hire those with 0 experience and improve internal training practices. Watch resignation rates drop and retention skyrocket when you provide adequate training.
...groundbreaking, I know.
I said this sarcastically, but then realize that also few places do this.
In many cases it also just makes more sense. If you hire someone who has 2-3 years of prior experience, they will be used to doing things a certain way and might not jive with how you do things. Teaching someone from scratch makes them 100% aligned to your processes. Not only does this translate to improved utilization and efficiency, but also that someone is less likely to move because they don't know how to do things differently. I've moved around a fair bit as an experienced hire and have certainly brought some learnings from other firms to my current one, but it took a while to learn "their way". It's easier from the bottom. In my firm over half of the current Partners started as Analysts and had a phenomenal ascension due to a mixture of skill and alignment from the beginning to our way of doing things. It works.
Agree with this. Not enough people giving chances these days. Hire for attitude, character and then train the hell out of them. Not enough managers sitting young kids down with a whiskey and a cigar these days (figuratively) and laying out a vision for them.
Don't worry, it's real life in some firms still and I love it.
Solid approach
Please tell that to >95% of the companies in corporate America, cuz they need it.
Funny that this advice comes from a consultant. As an ex-consultant who worked at two of the largest firms globally I can attest to the fact that I received more or less zero training from both firms and was expected to hit the ground running both times. I received far more training during my IBD internships relative to FT Consulting.
However, I completely agree with your advice.
What made you go from IB to consulting?
Yep, my firm has had an analyst and associate position open for 6+ months now. Can’t find anyone with adequate experience, and it seems most people applying have no RE experience or are non conventional applicants i.e. people with 20 years of other experience, attorneys trying to lateral, a professor (lol) etc. Very weird out there.
Mid level is probably the hardest in the industry, I mean why would I ever leave where I am at and go into the unknown? At 2/3 years I am comfortable with the people here, getting splits off promotes cash flowing on money I put into deals, getting people under me to do less actual work.
I would potentially leave more a higher role, but still those are like 5yr experience roles, and everyone says I am not there. So unless I am about to get fired idk why I would leave for the most part.
Completely agree, its why I am not leaving either. Not enough experience to make an actual jump for large comp increase or title, and situation I have is to good from a comfortability and career standpoint. If I stay I am happy with progression and comp, if I leave I gamble on my lifestyle and my colleagues, even if it means higher comp.
2-3 years experience is midlevel?
Completely agree (although wouldn't call 2-3 years exp mid-level). Particularly in the current environment - why jump ship to somewhere you don't know 100% you'll be a fit or that they'll need you if your current role is very secure going into a likely recession?
Out of curiosity, what is your total cash comp if you are also getting pieces of the promote?
Why is this? I honestly thought analyst positions are so competitive.
I’ve worked at different quality firms across RE. The competitiveness of the process varies wildly between different firms
In my experience getting associates is the hardest by far and I really don’t know why. It’s like they don’t exist.
Not sure what the deal is at the Analyst/Associate level but my firm is having a brutal time specifically at the Analyst level. I remember years ago any Analyst gig even remotely associated with RE Finance would have hundreds of applicants in hours.
Maybe just hire good people without experience and train them (analyst level); you can't expect 2-3 years of experience for an entry level role.
We did this recently, hired someone from a Masters who showed all the right qualities needed for the role. Very happy we did, 6 months in she's outperforming previous hires with 1-2 years semi-relevant experience and hasn't picked up bad habits from previous work given this is her first job. Takes more work at the start to get them up to speed, but worth it once they're up and running.
Do you want to connect via PM? Actively trying to make a move, currently doing acq/AM for small shop focused on 1 asset class & geo (would argue it has applicability w/r/t how to underwrite other asset classes, but no need to get into that here). Senior analyst or associate level, few years in this RE role, and have a few years of exp in a non-RE IB. Not your standard candidate from a REIB group or top tier brokerage, but I'm happy to take any test to prove I can do the work.
FWIW, NYC based.
Delete
Well its pretty hard to get experience when every 'entry-level' analyst job posting says 1-3+ years experience in CRE or IB.
Does sandwich analyst at Subway count? If that doesn't work, I was in charge of Toilet acquisitions at Home Depot Investments, where I focused on value-add acquisitions of Class B toilets. Average IRR per toilet was 27%.
Not sure as I'm unqualified to wipe my ass. I only have experience as an Intern for Doordash but I was able to cut inventory expense by eating 30% of the customer's food before delivering.
Have had a job opening at my firm for 16 months now. Salary is six figures plus bonus (which is definitely below market) but the real pushback we've received is the hybrid work model. We have had a couple candidate decline because they wanted full remote.
Six figure salary in valuations working remote? Doesn’t sound too bad
Our MD wants analysts in the office 5 days a week until they have 2-3 years experience. I don't necessarily agree as it's redundant if senior people aren't in every day too, but it's becoming a real issue to try marry up a candidate's desire for 2-3 days WFH and MD's desire for them to be in for 5 days.
Your MD seems like a pussy bitch.
Sounds like the times are passing him by and retirement is calling.
How will the MD know if they aren't in 5 days a week? Be the cool VP who gives Junior staff a heads up on when MDs come in (if predictable)
Why are you surprised that your analyst postings have applicants with zero experience? It is an entry level role.
When I was coming out, this drove me insane. Do you really want someone that has been at another company for 1-2 years and is already looking to jump ship?
Actually our analyst roles are not technically junior. Pay is $120K plus bonus in a LCOL market. The title is analyst, but pay is strong.
I remember those days - applying to countless entry-level jobs who wanted experience. It was extremely frustrating trying to get a job so that I could get experience, however I needed experience to get the job.
Perfect encapsulation of a catch 22
Yes, have to move quickly on candidates. I’ve told earlier career people in industry to state they embrace working in the office if they’re looking for a new role no matter what. I’m hybrid enthusiast but in an interview it’s doesn’t help you when you say you prefer working from home for a lower level role. I’d take the person who leads with wanting to be in there with our group
Yes, it seems like anyone with the experience we are looking is already receiving an offer elsewhere before we're even able to make a move. Otherwise, anyone with less experience is not delivering enough interest in the role or would really need a lot of training to get them going.
Curious, which areas are guys hiring in? Acquisitions, asset management, development? I'm seeing some comments in other threads about some choosing to stay where they're at since new hires are likely the first to get laid off.
I am seeing entry level Asset Management and Development roles pop up in my midwest hometown market. Not a tier 1 city.
I come from an IB background (not RE). Curious if you had to rank the following with regard to receptivity towards zero RE experience:
Acquisitions, Asset Management, Development, and Lending
Thanks man. It seems consistent that asset management would hire during slow downs and acquisition teams might stay where they're at or become a little leaner. Development is the one i'm wondering about.
Based on least to more experience I'd rank it as follows: lending (or any debt-related role), asset management, acquisitions, and finally development. lending is a bigger market and more jobs there. The market for the other three tends to get smaller and i would say acquisitions and development kind of diverge from one another because their skillsets required are a bit different. Honestly, someone might comment differently. Institutional vs boutique can really make a difference, but I'll stand by saying that lending will probably be the most open to the lesser of RE experience.
Then you probably should pay more. Also, what are the roles you want? If you've got a very junior role, who are you expecting to apply? Sam Zell? A junior person isn't going to lateral and waste a year of their early career progression. Of course you get people with no experience.
Honestly, this kind of attitude is why the Great Resignation is a thing - employees are fed up with being asked to have years of experience to go work in a badly underpaid junior role. Pay well and treat people with dignity and you won't have an issue. If you're running a low pay sweatshop and you want someone with experience so you can start squeezing them immediately, of course no one wants that job if they have other offers.
I'm actually in a position where i'm being recruited for a director level role (7-15 years of experience). There is no promote or carry, so i really wonder how some of you have these opportunities at more junior level roles, but it seems like there really is very limited opportunities for people.
I have received two offers and candidly have been feeling inclined to turn them both down, mostly for the similar fear of the unknown (potentially having to work more demanding hours, increased production goals commensurate with the higher title/pay, wondering if i'm biting off more than i can chew).
Especially when considering how volatile the market has gotten and stuff, i'm really curious how that might impact overall job security.
We have had an Analyst gig up for three weeks now and I just got told by HR we have zero applicants.
How is this possible? Just 5 years ago I remember any role even remotely associated with RE Finance would have thousands of applicants in minutes.
Drop the application link 👀
What type of firm are you at?
Yeah... and your response is to assume that something is wrong with the thousands of people who would have applied five years ago, instead of assuming that maybe the role is a shitty one?
Pay more.
I've never seen a job posting that includes the salary, maybe the pay is fine but no one is biting?
Yup - tons of candidates reneging as well
As others have pointed out, the flip side of the coin is that RE firms aren’t willing to take on candidates with transferable non-RE backgrounds for entry level roles.
I’ve done a lot of networking trying to break into RE from a top consulting shop, and only two firms have been receptive to that. The vast majority are in the “no experience = no interview” camp even for entry level, 100k roles
Someone mentioned “fear of the unknown” and I think that’s likely a big part of it at least for people with more experience. Many are comfortable where they are and aren’t willing to trade their current work life balance whether it’s fully remote or hybrid for some other job with possibly worse hours. Especially those people with young kids.
For less experience roles I am not really sure. I have heard all across the industry many different people having so much trouble even attracting young talent for Analysts roles. It’s not even like they have tons of candidates and then offer them gigs and they turn it down due to low comp or whatever, simply just getting people to apply.
Yeah, as someone in a more senior role, the fear of the unknown is pretty hard to get over.
I would hate to make a jump to a place that grinds me at my age (early 30's). I'm just too tired and want to focus on actually enjoying a chapter of my life. Also, I feel like the higher up you go and the higher the comp gets, the more you have to lose. Then there is also the whole "imposter syndrome" factor that I seem to struggle with, too.
Are these issues with hiring analysts occurring in T2 cities and below, or is it also a T1 problem?
I think its probably all over, but T1 cities are having difficult. Commuting to Manhattan and working at a REPE shop making $90K is actually a struggle once you factor, taxes, commuting costs, rent, etc. Wages have risen everywhere, but they are yet to go up much in our space.
To put it in perspective, my cousin who is a community college dropout in Northern NJ, is pulling in $94K as a warehouse associate. He got promoted twice within 11 months for simply showing up to work. They straight up told him he'll be managerial level next year which has starting pay at $135K. Promotions are so fast as long as you show up to work. He gets full health benefits, child care, 401K with solid match, etc. He's only 26.
Yes yes yes and I am fully aware of the future potential of being the next Sam Zell. In reality is that only .00005% of those that are 1st year analysts achieve that, but yes the potential is higher. My point is that pay has gone up everywhere quicker than it has for us.
Yup, merely asking because I’m trying to pivot into CRE at a T1 city. Gauging how competitive these first-year analyst roles are.
Applicant pool has shrunk by 75%+ for same exact positions posted pre-Covid vs. now, brutal
This could be solved if these companies had the will to look at diverse candidates for once. 🤷🏾♂️ It’s starting to happen but still a good ole boy network.
Why do they have programs like Project Reap and Project Destined? I'll pause here.
Real estate has always been an arcane industry. A lot of people don’t know the wealth and opportunities that exists within the field. Furthermore, addressing the topic at hand, most junior roles don’t pay enough while requiring candidates to be overqualified. Also, I can’t stress this enough, the sternness of RE companies to force people in office 5x a week is just unattractive. Will there always be a person who is willing to do it? Sure. But the high quality candidates with options will just go elsewhere. If you look at tech, they pay well and offer great perks but are having some hiring difficulties only because relatively few people know how to code. RE is not rocket science, but people are just fed up with subpar conditions and compensation.
Totally agree, I’m in my office 5 days a week and will be leaving my current firm for a hybrid structure at a RE tech company. I’m just sick of having to show face 5 days a week for worse wlb than peers in tech
Anyone in Europe experiencing the same? Id be willing to relocate, travel most of the time and be at the office for better pay.
Sure, I am light on the experience side but you get that by working :D
You have any fall analyst intern positions?
Yes. Took us 4-5 months to fill a junior-level analyst position in a T2 market. Couldn't find strong/relevant resumes and when we did they had already taken another position
☀️Summer is Here!, Relax and enjoy making new memories while we take care of your strenuous business affairs. Hi, my name is Krystal Hodge. I'm writing you to introduce myself and to see if I can service you in the area of Executive Virtual Assistance. If any of the topics interest you below please confirm by commenting in the comment section and I'll be happy to assist.
Property Research
Travel Arrangements
Floor Plan Enhancement
Tour Book Slides
Billing
Offer Letter Revisions
Expenses
Client Gifting
Conference Management
Calendar Management
Reservations
Enjoy your first day of summer. I look forward to working with you soon!
Krystal Hodge
Commercial Real Estate Virtual Assistant
khodge.creva (at) outlook (dot) com
☀️Summer is Here!, Relax and enjoy making new memories while we take care of your strenuous business affairs. Hi, my name is Krystal Hodge. I'm writing you to introduce myself and to see if I can service you in the area of Executive Virtual Assistance. If any of the topics interest you below please confirm by commenting in the comment section and I'll be happy to assist.
Property Research
Travel Arrangements
Floor Plan Enhancement
Tour Book Slides
Billing
Offer Letter Revisions
Expenses
Client Gifting
Conference Management
Calendar Management
Reservations
Enjoy your first day of summer. I look forward to working with you soon!
Krystal Hodge
Commercial Real Estate Virtual Assistant
khodge.creva (at) outlook (dot) com
The only people who want these jobs dont have experience or want to be overpaid
Where? FWIW As a college student interested in RE it seems that everyone is applying everywhere and there are a ton of talented students super interested in RE careers... too few spots. Maybe this is for top repe shops/big name brokerages only but definitely, a lot of great talent if ANY firm puts out a listing. I recently sent out an email blast to a 400+ member RE club on campus for an open position FT and apparently 43 applied just through that link. I go to a school with a great RE program though so definitely not the case everywhere but talent is out there.
I’ve definitely been hit up by a ton of recruiters lately. Based off of that alone I can assume the market is piping hot for jobs, but there’s just such a lack of experienced candidates.
Consequatur molestias animi dolorem pariatur voluptatem quidem amet. Dolorem aut nihil qui rerum amet amet ea. A officia expedita aliquid molestias corporis qui ut.
Minus nostrum reiciendis ut pariatur culpa. Et rerum ut ea autem commodi odio. Magnam molestiae aut est laborum.
Reiciendis recusandae error quasi. Et occaecati placeat consectetur. Earum ullam odio excepturi quaerat. Saepe ut alias ut quia aperiam doloremque. Sit praesentium qui dicta veniam aliquam voluptatem quis totam.
Magnam est sequi dolorem repudiandae aut aspernatur eos. Nesciunt non dolores omnis molestiae. Ab qui consequatur aut velit est necessitatibus dolore.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Aut ut unde error vel magnam necessitatibus voluptatibus. Quia expedita quo officiis quod rerum.
Doloribus qui assumenda perspiciatis voluptatum. Et fugiat exercitationem accusamus voluptas ut animi. Asperiores voluptas qui omnis deleniti soluta. Minima dolorem quae odio eius.
Velit non maiores quasi eius molestiae consectetur molestias. Minima quis deserunt sed unde incidunt saepe.
Nemo magni saepe sed animi aut est quidem. Recusandae praesentium in illum cumque et impedit vel voluptas. Quasi ab consequuntur cumque eveniet repellendus. Qui voluptas sequi id voluptas.
Distinctio omnis eligendi sequi quia. Et libero ipsum nemo molestiae voluptas vitae.
Necessitatibus quia odio quia et exercitationem officia. Aut et cupiditate quos odio. Consequatur illo et aut. Voluptas labore sequi repellendus dolor recusandae corporis qui. Nulla culpa dolores perferendis dignissimos mollitia amet corporis voluptatum. Iste voluptatem est non voluptate in. Ut ut qui totam assumenda incidunt.
Et dolorem vero voluptas at eos perspiciatis optio. Et doloribus autem iure sequi. Repellat voluptatem tempore et sit. Nisi ut eius omnis dolores. Totam aut nemo ratione dolor.