I know titles vary from firm to firm, but I'm curious on how to best position myself to become a portfolio manager at a mid-large scale development firm. What I mean by portfolio manager is essentially a guy/gal that is focused on the high level aspects of a deal. This includes both formulating a real estate portfolio strategy and handling specific negotiations in a deal.
These are some of the things the PM at my firm does: strategizes on how to negotiate for city subsidy for our projects, decides which neighborhoods/cities the firm should be hunting for deals in, and examines the existing portfolio to see if excess land on a site could present another development opportunity. He knows about every building in my market (sale price, owners, how the deals got through entitlements etc.)
This part of the business seems fascinating and seems like my dream role later in my career. I've only been in the development industry 6 months (got a long way to go) but trying to figure out the necessary skillsets I need to build over the next several years to get to this point. I'm currently used as an excel monkey- running pro formas and various one-off analyses in excel. Is this a good place to start? Knowing the numbers will definitely be useful, but clearly would need to pick up other skillsets. Would construction knowledge/ working in project management for a bit be helpful at all? This role seems like it requires a lot of relationships in your makret(s), how do you build those from scratch?
Hi mIRRacle, any of these topics helpful:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Bump...
Unless I am missing something, your question is essentially "how do I get promoted at a development firm?"
Generally, firms promote (or hire up) based on your demonstrated competency at current level and some assessment of "potential" for you to do higher level work. Leadership, people management, negotiation, all the standard "exec" stuff is what you need to develop (and of course really know the real estate and development business).
I would advise working diligently at your job at hand (given that you are only 6 months in), I'd guess people in these roles have 15+ years of experience or more on average (the equivalent at my firm do). Focus on the next level above you (development manager or something like that?). Take every opportunity to learn, meet people, etc. Read tons of books as well.
It's a long game you are playing, so don't worry if it feels overwhelming, takes years to get to that level.
Thanks for the advice! I guess my question is more along the lines of what is the ideal career trajectory to prepare one for becoming an exec that is more focused on managing the firm at a high level, rather than only managing the construction process or being a pure numbers guy. A lot of the execs at my firm are either senior project manager types- they look over the day to day construction process at a high level OR are in purely analytical roles (modeling, debt side) with little management responsibility. These roles don't appear to be stepping stones either - they seemed to have reached the top already and now are just trying to further perfect their skillset. It seems the development industry is very focused on specialization- I guess I'm wondering how to gain the expertise to specialize in development acquisitions/ "putting the deal together"
Honestly I don't think there is an "ideal career trajectory", people start in all sorts of places (finance person, construction person, planning person, etc.) and then either move up or around as needed. My firm tends to let people diversify skills by moving with a project from acquisition to design to construction to asset mngt/divestiture; so when they get promoted they have overall life cycle experience. Some do stay more specialized on finance/modeling and stay in acquisitions mode or in design/construction based on interest/skills/background, but generally everyone floats a bit by needs of a project.
The people who are at the level similar to what you call PMs, come from all sorts of backgrounds, can't really say one "career path" is evident. Management ability, presence, ability to deliver, and stuff like that are what seems to enable a person to be "tapped" for promotion when the need arises. This is pretty much what I've deduced with most "mngt" types I've met, worked for, or done deals/business with.
I mean CEOs of real estate firms can start anywhere... acquisitions, asset mgnt, capital markets, finance, research/strategy, and even construction ops. Really as you get "higher" up, it's those soft people skills and deal doing skills that matter, nobody will give a shit about your excel skills or other entry level tasks.
I'd imagine as you get more experienced, better/faster at your current job, you will naturally be brought to the table to see the "putting the deal together" side on acq/leasing/sales. You should try and position yourself to "get in the room", but you have to be able to do your job super proficiently/efficiently first to get those ups. Those who can do their "regular" job in 80% of available time have the 20% to either goof off/leave early or tackle more/better work. Those that do the latter get promoted and advance quicker. An example, be able/ready/willing to "volunteer" (or position to be "voluntold") for special projects or other items of value to senior mngt. Call it brown nosing or whatever, but you have to stick you neck out and take risks to get ahead, part of the game.
In fairness, you are 6 months in, you really don't need (nor should) rush this. I would do stuff like focus on reading (or listening) to tons of business books, networking and gaining leadership roles in real estate organizations, taking classes for extra skills (on whatever, subject matter is not important), and doing whatever you can can to be your best. Be efficient, look for ways to add value, the key is being ready when you get your "chance".
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