MBA worth it in CRE?

redever:

So, see the below, I actually posted this as a comment to a similar question months ago, then re-posted again to a similar question. It is still applicable.....

So someone asked something similar a few weeks ago.... here is what I said, still applicable

"*Here is the general deal with grad degrees right now..... TONS of people are getting them, especially MBAs but increasingly specialized MS degrees like MSF, MSRE, MSRED, etc.

So basic economic theory applies, the greater the supply, the lower the value all else equal. Are firms "demanding" these degrees, short answer, "sort of", but that goes to next point....

The more people have a grad degree, the less unique advantage any particular person will get out of it, BUT, those without are at a greater and greater disadvantage. Hence, the grad degree is becoming the new BS/BA degree (decades ago, simply getting a 4-yr degree gave people the same leg up a grad degree is supposed to do today).

Here is what is happening in the real world. Firm posts a job requiring a BS/BA degree, gets 100 applicants, 10 have grad degrees. Guess who (sometimes) gets interviewed first....

Now, seeing the success of hiring people with grad degrees (sometimes at rates barely more than what people with BS/BA degrees want) they change the job post.... Requires BS/BA, graduate degree PREFERRED. Now, 100 applicants, maybe 50 have grad degrees, want to guess who will get called or not called?

That is the shitty truth of it, the value is eroding, but need is increasing. My advice, if you are young/junior and still establishing yourself, you should probably plan on getting a grad degree if most people along that same path (think about those 5-10 yrs senior to you) have them.

Further, many big firms require them for promotions, making partner, etc. and people do get a passed over for lacking a piece of paper (even if otherwise qualified). That is the world we live in.

If you are okay potentially staying at smaller, entrepreneurial firms (which are common in RE), then not having one may never matter, but your option are theoretically more limited."*

To add on...

The MBA vs. MSRE debate often misses the point. The content is different, and that really is what should be factored. If you already work in CRE and basically know the content (which you should not just assume), then getting a degree that doesn't expand knowledge or skills is not the best path (the 'certification' and network still has value). I honestly don't think employers actually think MBA > MSRE, in fact in many cases MSRE > MBA. The fact that it's hard to get hired at BX and places like that, and they DO hire from HBS and the like when then hire gives people an overconfidence about those MBA programs. Trust me, going to HBS/Wharton/etc. and getting an MBA even if top of class is not a guarantee of an analyst/associate role at one of those 'top tier' firms, they are just super competitive to start.

It’s a bit off topic but to expand on this, I do think a grad degree is the new college degree due to the growing prevalence of these credentials. I think for many of us, it’s a good trend and also an incentive to not get into heavy debt for undergrad (unless for a top tier university).

Let me explain. When you are a 17 - 18 year old, who knows what your potential earning power is? Likely, you don’t know your field of study. You don’t know how you would fare in the work world. Are you driven or want a lifestyle career.

Usually before you apply for a grad degree, say the MBA / MSRE at a reputable school, usually you do have a sense of what you want to do, what you are good at, and identify potential paths for career growth, and likely you have saved up some money. Now is the time to really bet on yourself and invest, and spend the money if your goals are defined (usually your grad school applications and references are supposed to validate that).

Great ”follow on” if you attended a non-target undergrad. I call it follow on because in the grad school dominated world of the current and future; you can bloom later and still achieve. In fact, if my kids couldn’t get into a top university (obviously would love Cal or Stanford); I’d be happy if they attended my alma mater in Hawaii (state school $13-17k/yr tuition) and experienced life there and really crush their classes and grow. I’d want them to try many things and latch onto something that interests them (hopefully with a career in mind). There would be another swipe of the card if they prove to be talented and resourceful, with grad school.

With that context, when is the tipping point where having a grad degree is a distinct advantage for the so-called post-MBA jobs at institutional firms (I’m thinking. associate level)? I think it was between 2010-2016 for CRE. Also to give context, a grad degree holder is more likely to hire another grad degree holder, especially if that boss needed it for their hiring way back. It validates them. Human nature. Hence, this trend is likely not going to reverse itself.

I’ll add. The majority of my peers at the REPE when I was an analyst, and even at a highly institutional development shop, the ones who resisted getting a grad degree the most were those from real estate families, and they had some idea of one day returning to the nest. For those of you without that, it’s the Jungle out there. It’s up or out. Unless you can walk on water, credential up.