When will the recruiting market heat up?
Are there typical times of the year where the recruitment market starts to heat up?
Presently I’m seeing a lot of asset management roles / debt investing roles.
Even all the largest recruiters in the US don’t have mandates at the moment. Is there a standard time of the year where investment focussed firms start to take on candidates for Associate programs? Do we think that they’ll start to come up over the next month or two? What worries me is that bonuses have already been paid at all the firms, so typically this is when I would imagine roles start to surface, but so far nothing at all.
They don’t have roles because the market is terrible right now. Real estate is really hurting with the rise in interest rates. Generally roles will open around this time. This year, probably less than normal because of the market. Transactions are down which means no one needs acquisition teams or lending teams. In my network, I’ve had 3 people call me in the last month saying they got laid off. It’s tough out there right now.
The only reason that a company would be hiring right now is if they just had someone leave, but since we are headed to very uncertain economic times not too many people are leaving where they are currently. Until we get back to a low interest rate environment, or sellers start coming down on their asking price, we won't see growth happening in the investment real estate sector so companies won't need to hire anyone new.
Honestly will be bad through 2023
I know an awesome HH group that's been steadily sliding me awesome REPE secondary / structured investment / debt roles over the past few months. I actually just landed my first as a Senior Investment Analyst for $125K and ~40% bonus in NYC. Focused on "structured" investments, but really just a fancy way of saying Pref. NGL I'm pretty jazzed up to take the offer. I'm not going to tell who the plug for these jobs is though. They're MINE!
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You are everything that’s wrong with the world LOL
Seriously this. Everyone wants direct connections for free. Jesus christ at least buy me a drink first
Can you please DM? Got an offer pulled last minute. I’m down bad
My 2 cents
Everyone I have talked to in my network says its going to be a long time before recruiting gets as hot as 20/21 was. The lack of deals happening is affecting the whole CRE food chain. Headhunters in my network are constantly looking for surveillance and special servicing, which makes sense. I am actually quite curious to see what the retention rate will be for this new class of summer analysts. I personally think it's going to be a bloodbath, with return offers to be few and far between. Internally, I think if you haven't been laid off yet this is actually a good time to step up and take on more work, with the possibility of quicker advancement. The theme everywhere seems to be "Do more with less".
I will probably get MS for this, but in my opinion, I think the CRE cycle is going to be dead to flat for the next 3-5 years. People are conditioned to believe rates will go down in a few years. JPOW has said no such thing. Rates will be elevated for the foreseeable future. Transactions will be down and it will take a little bit to sellers to get their heads out of their a** and learn quickly that there class A multifamily is a 6 cap (atleast) rather than a 3 cap. Also when I mean dead to flat I mean stable, gone are the days of euphoria, I think we go back into a much more stable environment. If you look at the total CRE industry, its like 3x bigger than it was prior to GFC. So many firms, development shops, syndicators, average joes were trying to get into the industry over the past decade. You had mass hiring of analysts/associates over the past decade as well. CRE got too big too fast.
Didnt mean to go off on a tangent, but to answer your question. I dont expect much hiring. If you got a job, keep your head down and do it.
What kind of opportunities do you see popping up in the next couple of years. I know this is a crystal ball question but I would love to hear your thought process. From what I know at least, the alternative investments sector focusing on affordable housing, medical office, BTR is seeing some growth.
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