What's an Undergrad to Do?
With all the talk of a weak job market and low deal flow for acquisitions, I'm curious to see what experienced professionals think is wise for current undergraduate students like myself to do. I see that some people are getting out of RE altogether and others can't find any deals that make financial sense.
For context, I go to a traditional semi-target/target undergraduate school with a solid RE program. I'm not anything incredible relative to my peers, but I'm going into my sophomore year (2029 grad date) with a 3.8+ and I've done an internship focusing on short-term rentals. Beyond that, I have some case competitions and the A.CRE accelerator completed. In an ideal world, I'd love to work at a REPE firm with between 1-5bn in AUM in a more generalist role, but I know how difficult it is to land anything nowadays. I'm currently focused on applying to as many internships as possible in anything related to RE.
With that being said, what do you think the dealflow and job market will look like when I graduate? The insane bull run of the last 15 years is unlikely to happen again, but will we even get to a point within the next few years where new junior professionals are needed again since there are so many mid-career professionals struggling?
All input is greatly appreciated!
I don’t know what the market will look like when you graduate in two years, but I think there’s a good chance we’ll be somewhere between the bottom and the top of the cycle by then.We’re just coming out of the bottom of the cycle where institutional investors hate real estate and there’s good deal flow driven by distressed owners that need to sell. This dynamic will continue for a while until liquidity comes back for some reason (i.e, more capitulation of sellers on valuation and/or cheaper financing), and then deal activity will start to increase until we hit peak pricing again. I have no idea where we’ll be in this cycle when you graduate, but there should still be some part of the “wave” that you can ride.My advice in the meantime would be to keep your grades up, stay involved in your university’s real estate club, and get as many relevant internships as you can before graduating. People in hiring positions know that this market is tough, and they won’t hold it against you if your resume is not spotless. Just continue to show steady interest in the sector, have some interests outside of work that you cultivate, and have a hunger for learning.
Thanks! It's interesting that we're coming out of the bottom of the cycle. I just hope we come out of the bottom far enough by next fall that REPE funds are looking for acquisitions interns! Over the last year, I have heard of a few deals being done from another university's REPE fund, but it's mostly industrial and office space. The head of it said it wasn't as bad as people make it out to be right now. I'll be interested to see what classes emerge over the next few years, especially since multifamily deals are so rare. I'd have to assume that at some point, sellers who want to transact will have to make it make sense for the buyer.
Great advice by the way. Really makes me feel a bit more assured as someone who is generally anxious about recruiting, even though I should know that I'm doing all that I think I can do. Thanks again!
This is purely what I would do, but everyone is different. What would I do as an undergrad in 2026 (I mentor 1-2 accounting major undergrads a year so I’m still connected, usually they are from my home state Hawaii). Because of my background, I attract an unique type of accounting student to be their mentor.
I’m seeing them get jobs at the local firms (Big4 accounting, local CBRE brokerage analyst, local accounting firm). This leads me to think local is an advantage. Target, non-target, regional whatever, crush it locally. I would not fault a kid for starting their career in the local employer vs the big city national / regional office. Careers are long and stackable.
Doesn’t matter how hot the real estate industry is as a whole if you get really solid locally. Think of yourself as a baby fish in the tide pools. Real estate will always be there. Are you an interesting person, who has a vision for yourself, and can adapt? Work on those aspects. College is a great place for that. And have lot’s of fun!
I truly appreciate your comments, and OP listen to this guy! Having something you always are "driving towards" is huge for the mental game. RE is a long term business, so dont worry about the market today or in 2 years.
OP I think i'm similar to you in that when I was in your position I was always worried that I had just missed the the boat, and that things would never be the same. To an extent, I do think there never will be another ZIRP era of RE (that I also missed out on), but even then everything is always easier in hindsight.
What I take from Odog, and completely agree with, is if you really have passion or drive for doing RE, whatever function that may be, you will figure it out. Deals are hard to get done right now, but they ARE getting done. You will make it just fine.
Thank you @Dev_WanaBe
Thank you so much for your comment! I'm currently a finance + accounting major, so I should be CPA eligible if I go into an accounting-focused role. I also absolutely love real estate- I've been a finance nerd since I was 12 and read a few books off my dad's bookshelf, then I taught myself how to model for a potential multifamily deal during COVID. I just fell in love with RE then, but it fell by the wayside until I got to college and realized that it could actually become a career.
Love the idea of meshing RE + an operational skill set. I think it could also be a huge advantage when looking at smaller shops. Every applicant can model and understand RE, but not everyone can help during the month-end process, and I'm sure this plays a factor in small firms with a limited headcount.
The "eventually" idea is something that I really haven't put a ton of thought into, but it's a great idea. I suppose I've just been trying to be the very best at understanding RE fundamentals and modeling, but I'll definitely want something unique long term. I think opening up my own REPE shop could be super cool, but obviously my North Star will evolve as I narrow in on what I really want to do.
Thanks again! If you're ever in the Midwest, shoot me a DM and I'd love to buy you a coffee. The advice is very much appreciated.
My pleasure. You teach me also as a parent with a 12 year old. I do have books lying around for finance and RE at home, but since my daughter is more into making things, I should get books on IDEO product design, Creativity, Inc (I have that), and other more visual books at home. You gave me a parenting idea (one of the reasons why I frequent this message board).
Consider CPA exam even if you don’t go into accounting right out of college. In some states, you can get your work hours under a CPA, and you don’t have to go into public accounting (as low as 12 months). In California, it’s called Form G. That’s what I did.
Take the exam while the concepts are still fresh.
I’ve been unemployed in my RE career three times over 6 months, in 20 years of working. Accounting pays the bills when capital dries up.
Your story how you got into RE is excellent. It denotes long term thinking and positioning (not “I struck out on other finance jobs so I’m looking at RE”). Your type of story is one of the better ones.
To me, RE especially developers, need to know and admire history.
It would be a dream if my kids would read my books from the bookshelf. But realistically, I don’t think they will. Not at age 12. You do have some eventuality in you.
Lastly, when you become a Junior in college, I saw this change in me, that you become more confident in yourself (half the college is now younger than you), and can be more than just a student and build something like a student club or sub-group/workshop, maybe around your next North Star. You say you attend a target/semi target and might think the path is laid out and there’s nothing left to build, but think about what could be needed. Will help you find your “voice”, get you out of your comfort zone, and help supplement your b-school essay on leadership and entrepreneurship (especially if your pre-mba experience is all corporate and junior roles). For students at schools without a lot of resources, this is an excellent way to stand out (create a club or resource for fellow students; pitch the department head and ask for some pizza money). This maybe is easier than winning your business plan competition (my team did, but 22 years ago, I think it was easier to win vs today).
nice comment, odog!
To repeat / elaborate on a previous comment, the hands-on experience is a great, low-hanging fruit for you. If it's shadowing a property manager 5-10 hours a week for free during your school year, do it. It's a particularly great hedge if market is still crap in three years and you will be top of any resume pile for asset management positions (which are far more resilient irrespective of market conditions). And if market turns and you're gunning for big acquisitions job, you'll actually have real 'deal' experience to speak to. You can look at a pro forma P&L and say, well based on my PM experience, X is too aggressive and Y is too conservative. Acquisitions guys who haven't managed a hamburger stand in their life will be impressed, even if they won't admit it. (all love, acquisitions guys, I'm one of you but let's know our limits on actually implementing the biz plans we u/w). I digress.
TLDR: unpaid internship during school year is great resume builder and interview fodder
Awesome advice. I'll reach out to some local firms over the next month or so.
…whatever you do, please do not focus on accounting or sit for your CPA exam.
Despite this site having Wall Street in its name, the role of the CFO is very downplayed here. Ignoring the highest finance position for 90%+ companies out there, and a pathway to get wealthy and be an owner, is just limiting yourself. The fresher opportunities are shifting and spreading out, and valuing being multidisciplinary.
CFO oversees accounting among other things.
Sure, and totally irrelevant to 99.9% of people on the real estate forum, the vast majority of whom do not aspire to be the CFO of a public company.
Here’s a challenge to conventional truths of our profession. A hot take.
Due to the growth of modern REITs starting in the 1990’s, we’ve had an entire generation or two of CRE professionals who immediately think publicly traded companies with a lot of real estate and RE activity are the REITs. And don’t think beyond that.
Therefore, we get a lot of WSO topics about REIT vs REPE.
We almost never have any questions about non-REIT owners of real estate, some of which own, develop, use/lease more RE than the largest REITs, and whose core business is not RE.
Amazon and Walmart at around $150B each, RE portfolio, would be bigger than Prologis $100B, one of the largest REITs. McDonald’s would be huge ($50B). Microsoft ($200B?), Meta ($70B), Union Pacific ($70B), Disney ($90B), Las Vegas Sands ($20B), Alphabet ($250B), Intel ($70B), Comcast, UPS, Tesla, etc.
The list gets longer for smaller companies and with a diversity of business models.
And then think of all the non-public competitors and startups of these huge public companies.
The RE skillset can become valuable within a mix of experiences including operational, corporate finance/accounting. Under the right circumstances, the role of CFO (or even CEO or upper management) could be an attainable goal. But you should not feel stuck in RE, ghost jobs, shitty recruiters, that I hear people complaining about. If you’re unemployed, the market is forcing you to be open minded.
There is an expanding sea of opportunities, where your skills can be valuable if you get out of the mindset that you have to work for a real estate company. With a new Industrial Revolution occurring now (in the midst of a K shaped economy, reduced immigration and household formation, and higher costs of capital that nudge investment in higher yielding ventures), where energy, manufacturing, compute/storage, human experiences, becoming more and more in demand, there’s going to be a lot of change. Might take additional schooling. Effort to meet new people, show up at different conferences, and getting out of your comfort zone, even starting at a grade or two below in title just to learn the industry.
Leave the slop to LinkedIn, buddy. No one cares about your digital grandma service.
Nah, I’ll write whatever I want
You haven't begun your career yet -- so stay away from commercial real estate and follow another path.
Why not?
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