Layoffs within CRE
hearing about additional rounds of layoffs, Wells Fargo CRE / CMBS originations had a larger round last week. What else have you heard about firms laying off and in what groups and cities?
hearing about additional rounds of layoffs, Wells Fargo CRE / CMBS originations had a larger round last week. What else have you heard about firms laying off and in what groups and cities?
Career Resources
What office?
Orange County, CA office was all laid off for CMBS, the head of the SF office for CMBS too. otherwise, minor trims throughout all regions. I haven't heard any more specifics yet.
Damn Wells Fargo laid off….surprise surprise
Not really. CRE overhired because in ‘21, we were understaffed then a lot of people left in Q1 ‘22 because of shitty bonuses so the bank really ramped up hiring. Problem with that is ‘21 was an anamoly in terms of transaction activity. That will not occur again. To be frank, I do think CRE has a lot of inefficiencies like too many analysts on specific teams, MDs who don’t add much value relative to their pay, etc.
this is very accurate, especially regarding certain MDs.
any scoop on MFC? I think morale is pretty low there at the moment I heard.
They just lost their top originator. Word is he’s going to a non-bank lender. Banks are so heavily regulated that it is very hard for them to compete with brokerage shops. For a while, banks sold their balance sheet as a competitive advantage. But in this environment, banks really don’t wanna put stuff on their balance so therefore they either decline business or put out uncompetitive quotes.
MFC was a prolific agency lender for some time but I think they’re on the decline. Walker and Berkadia blow them out by a mile in terms of transaction volume. Also think because MFC lost their top guy, they’ll probably need to do more layoffs. With his loss, that’s a huge dip in revenue.
Spot on take. MFC is in a pretty bad state. Sure, they will keep chugging along, balance sheet clients who need takeouts will use MFC and there are a decent number of big name bank clients who are also loyal but with the top originator leaving, there is a huge vacuum that it will be hard to fill. And nobody wants to say the quiet part out loud about the decision to hire a person with no direct GSE experience as the head of MFC. The previous head helped increase production with his relationships, that is what the team especially needs during times like these. The only explanation can be they are saving money by maybe paying the new head under market. Another sign that group is in decline.
I heard American Realty Advisors has had 3 rounds of layoffs with the third being last week. I am not sure which divisions were trimmed down.
Acquisitions team is what I'm hearing since they're an ODCE fund that has a large redemption queue.
Facere labore molestiae ad et. Reprehenderit nemo impedit quia aut dolore qui ad. Omnis rerum praesentium eaque molestiae.
Autem minus repellat nisi et. Saepe aut velit minus. Similique quis rerum quasi provident. Sint alias eius iste maiores maxime non deleniti repudiandae.
Quas error quis omnis ea maxime qui exercitationem. Dolore quia facilis porro repellat. Voluptatem natus quos ea dolore quo aut quo. Nihil at quibusdam corrupti.
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...