I entered real estate for primarily one reason and that's because I really enjoy it and want a career in it and know that eventually if I work hard enough...I'll be financially fine. But sometimes its a little frustrating to work longer hours than my roommates, essentially have a similar rigor of work and be paid significantly less. I know there's a consensus typically that entry level CRE salaries are shitty typically but why is this so? I can understand for the CRE jobs with better hours but plenty of us are pulling 60-70 hour work weeks.
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Got it Axe, your base is low but surely you knew that going into investment sales. You're going to have a lower base compared to other jobs in RE forever if you're in investment sales but your bonus could / should make your friends want to cry.
The way your employer views it is that there wouldn't have been a deal for the you to work on without the broker or their relationships. You, the analyst, are pretty easy and inexpensive to replace. You don't really know anything at the beginning and they're basically teaching you everything. It's an apprenticeship based business where incomes over a career often look like a J-curve.
I 100% agree. But isn't any job an apprenticeship based business where income grows over a lifetime? Any analyst starting out, regardless of industry, is pretty easy and inexpensive to replace. Thoughts?
I mean there are so many factors it's hard to pinpoint, but my $0.02 is that it's 1) more regionalized/market specific, 2) it's more of an apprenticeship business as you mentioned, and 3) the teams are generally leaner unless you're on a mega-team. The first point is relevant for obvious reasons, the comp varies more broadly across the country because there are more CRE offices relative to peer sectors like IB. The comp data in IB for instance is going to be much higher because the jobs are clustered in NYC/SF/other high COL areas. The second point comes into play because the market/business knowledge gained is considered valuable in and of itself because in a lot of cases it's very difficult to break in to a specific market/product type. A different way to view this is that you get more exposure to clients/market relationships since generally an analyst on a CRE team is exposed to more varied types of tasks/activities more quickly than someone on, say, an IB or Mgmt Consulting track. Finally, expanding on the Third Point, there are usually less 'tiers' you need to fight through in CRE to get to the top-earning positions. Most brokerage shops start you out as an analyst, but then as soon as you get promoted to associate, you're in some way (even if small at first) immediately getting a piece of the fees. Obviously this is not the case in a lot of other roles. On the buyside sometimes it can be even more varied, where you only have one level of analyst/associate and then the next promotion to AVP/VP/Director etc. you get either equity participation or carry perks. This could take you as few as 2-5 years, where I've heard a similar level could take as much as 5-10 in IB/PE when factoring in B-School, the promotion/team structure, etc.
62k +bonus is more than you will make in most entry-level CF or Big 4 jobs. Ofc some REPE/ Dev jobs will have higher base but many smaller players will be in that same range. Stop whining and get to work.