Moving Markets in Brokerage
I am currently working for a big landlord (REIT) on the east coast in retail brokerage. I am one year out of school and have been with the company for the same amount of time. I was wondering how difficult it would be to move to another market for brokerage (other east coast city) once I have some more experience. I understand contacts in your market are built up over time, but would I be able to do 2-3 years here and then move relatively easy? Thanks.
IMO, no. That is the key issue with brokerage. I'm sure people will argue about how much a broker's value proposition is centered around transaction execution experience, but I think it is 20% or less. 80% is about the expertise and guidance you provide on local market conditions--concessions in different submarkets, comps to support your negotiating position, etc. Once you move to a new market you are at zero.
That being said, I would imagine it is far easier to relocate with tenant rep if you represent some national accounts or something. Landlord is very tough.
In most situations I would agree with you, but retail is a little different. Corporte RE reps have large territories. There is a good chance your relationships would be portable if you moved to another market. Even if it is not the same rep you can still work the relationship to get your site in front of whoever is in charge of the new district. Most brokerages won't take on a young guy unless he is part of a team, so OP's lack of knowledge on the local market wouldn't be a deal breaker.
Rule of thumb is that it takes 2-3 years to build up a substantial brokerage pipeline assuming you know the business. Figure almost no income in year 1.
Agree with that timeline, though there are brokers that operate nationwide as opposed to a focused local coverage. Our top brokers originate deals all over the country far from where they are based.
No disrespect to anyone here, but they don't know what they are talking about. I assume that if you work for a REIT you probably cover a few centers scattered across a region and thus you don't have intimate knowledge of any specific market. I suspect you spend most of your time calling corporate RE managers and their local tenant rep brokers. If you cultivate these relationships they will be portable if you wanted to move to a new market. You would want to be on a a strong LL rep team because you would not have any experience sourcing listings.
Yes I am on a salary + commission structure and work about a dozen centers in my region with a senior member. I have built up some smaller mom & pop tenant rep accounts, but nothing substantial in my first year. I have thought about moving into Asset Management with my brokerage experience at a big LL which I think could be possible. Working LL primarily for one year, I wouldn't say my brokerage relationships are tying me down in this metro area. If I only work in this area for 2 years and move to another city I feel like I would have a good grasp of the business and wouldn't need to be trained (could join as a junior member of a team). Is this the correct thinking?
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