RE Banking (Wells/PNC) vs. Intermediary (HFF)
Hey guys,
I'm a senior at a large SoCal school who's been interviewing at both Wells Fargo and PNC as well as HFF. I know I want to work in real estate but I'm not exactly sure which area to go into. I just wanted to get some opinions from people on this forum regarding the benefits and drawbacks of working for a bank like PNC/Wells vs an intermediary like HFF/CBRE/Eastdil. I worked for a real estate developer in NYC this past summer but would like to get some experience at a larger firm getting a lot of reps working on deals but I'm not sure which path is best. Any input is appreciated.
What are the roles at each of the companies?
So I'm doing an extra semester and will be interning this summer and then graduating next winter. The positions are all summer analyst roles which will probably involve a lot of underwriting and learning the nuts and bolts of the deal process. I know at the banks I would do a rotation between real estate banking, REIT finance, homebuilder lending and other groups. At HFF the interns spend time working in debt/equity/IS
HFF is probably the best choice because of the exposure you'll get. The roster of lenders/debt products and the buyside clients should be good as well. I don't know much about Wells and what exit opps it could offer later, but it seems fairly niched what they work on. I interviewed with them before, the role didn't seem that interesting. I'm assuming this HFF internship would be in SoCal and it won't start until Summer 2019?
I worked at a competitor of Wells/PNC and got an offer from an HFF/CBRE/Eastdil. Did not end up taking it because an interesting offer came up in the last second. Nevertheless, I would do brokerage all day. Doing commercial real estate banking is more commercial banking than it is real estate. Due to the regulatory protocols that commercial banks are burdened with your job will be 50% banking reponsibilities (stress test, internal risk ratings, annual reviews) and less real estate. At HFF/CBRE/Eastdil you will be thrown in the fire and see everything (that depends if you do debt/equity or investment sales), but either way they train you like a beast and learn everything from argus, marketing, modeling, networking and facilitating a deal. Do not worry about the optics of being a broker. That negative sentiment refers more to the cold call brokers. You are nothing like that at HFF/CBRE/Eastdil. Also, the exit opps at these brokerage shops are awesome.
In terms of prestige, HFF takes the cake on the debt placement side.
In short, steer away from commercial banking and take the brokerage all day. The ONE downside is there is probably more job security with the commercial banks (especially at this point in the cycle) and better work/life balance, but you are at the age to take risks and grind...
Feel free to PM me.. I also know the guys at most of these shops fairly well and we can talk more in detail.
IRReplaceable CRE Thanks for the advice! I am in a very similar position to the OP and was heavily researching HFF's Debt Analyst program. I can't PM you (reached my max today), but I would appreciate any insight you have.
Most of these shops are not looking for the best excel guy or sharpest tool in the shed.
(Side note: excel modelers are a dime a dozen and way too much importance is put on this in this industry. What is important (imo) is how one is looking at a deal).
They are looking for young professionals out of college with a passion for commercial real estate, desire to be in/work in brokerage (obviously their goal is that you become a producer for them) who have strong social skills and are enjoyable to work with. There are other skills necessary for the job (responsible, detail oriented, etc.) but you get the picture.
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