Seeking Job Offer Advice
Hi Everyone,
I'm looking for some advice/opinions on an offer I received and what are some things I should be putting more thought into given my current role and goals.
I am approaching 3 years out of school. I work in commercial real estate and the asset class I specialize in are hotels. I want to continue doing this for as long as possible but I am interested in exploring other parts of the hotel investments industry.
I am currently working in Washington DC and I work on the principal side of hotel investments at a portfolio company of a very large REPE company (like Blackstone or Starwood). I have been an Analyst on the Acquisitions team for about 1.75 years now but I feel like there is no growth potential, I feel like I've stopped learning new things in my role, and deal flow hasn't been great. Additionally, I am starting to realize working at a portfolio company can be a bit unstable in terms of job security after surviving 2 rounds of layoff since COVID started. My comp is currently at 70k and 10% bonus, which I was happy about in the beginning but now I feel like it is too low given how much more responsibility I have gained as a result of those lay offs.
I recently got an offer in NYC for an Associate role at the #1 hotel brokerage on the Investment Sales/Capital Markets team. Based on my current knowledge and experience working with people from brokerages, I was concerned that this role wouldn't be as technical as I would like it to be. However, they have assured me that the modeling on this team will be very sophisticated since they help their clients put together the returns for water falls and jv structures so it actually seems like I will be getting a lot more technical experience from this role than my current role. The comp they have offered me is 85k and and 15%, which is better than my current role, but I was expecting base salary to be more in the 90-100k range.
I think my goal is to get back onto the principal side but at one of the top REPE shops. I have recently interviewed at companies such as Starwood, Carlyle, Ares, etc. but without getting offers which means my current role isn't giving me the experience and skills I need to make that transition now. With this Associate role, it seems like I can get really get the experience I've been missing so my hope is to finally make that transition after a couple years.
Questions that I have and would appreciate insight on any of them:
- Am I being compensated fairly at my current role in Washington DC in acquisitions?
- With the new role, how much more should I negotiate on the base and is the bonus they're offering typical? I don't know what I was expecting for the bonus but I just thought it would be a lot different that what they offered.
- Will taking this role in investment sales/capital markets allow me to transition to a top REPE firm in a couple of years? How do the top REPE firms view candidates with experience from top institutional brokerages?
Thanks in advance!
1. Seems low to me personally, but there are definitely shops that pay this.
2. Have they discussed what future periods look like? The base seems roughly in line, but the bonus seems on the low end. Most guys at top institutional brokerages that I talk to were at around that base, but the bonus was 50%+ (this is west coast and anecdotal so take it for what it is). It's possible first year is pretty low, then 2nd year etc. your bonus looks more like 50% - 100% after you've proven yourself.
3. The guys I've seen exit top brokerage haven't gone to the MF shops, but they have pretty good exit ops to high/mid-level players. I'm not saying you can't do it just that I haven't seen it happen personally.
This is helpful!
And no they haven't discussed what future periods look like but thank you so much for the perspective. I have a call with the HM tomorrow so I will bring this up.
Guessing this is Hodges Ward Elliott? That bonus seems very low to me. Someone with your experience should take home $110k+ IMO.
It's JLL. Does that change your perspective at all?
These numbers are way too low. JLL (HFF) NYC pays first year analysts more than that... unless something drastically changed during Covid.
No if anything total comp should be higher i'd think. JLL Hotels group is probably the best in the industry
I wouldn't automatically assume that IS experience will translate into MF REPE roles (unless potentially AM). From my own experience and from what I've read, those spots are typically reserved for REIB analysts from top BB/EB. These firms run tight processes through the major search funds to fill their roles.
Search on Linkedin, HFF/JLL NYC has exits to MFs every year. Just in the last year theres BX and Angelo gordon.
What groups did most of these Analysts work with? Peter Nicoletti's REIB team?
Ran a quick search and still didn't see what you're seeing. There's a difference between doing asset management / portfolio management / etc. vs. acquisitions. Also as an aside, I wouldn't label AG as a MF. There may be outliers, but the propensity of true REPE MFs (BX/KKR/TPG/Ares/Carlyle/HIG) seeking acquisition associates will be sourced from REIB or from someone in a principal investing role.
OP I noticed you’re thinking about salary negotiations... I would be careful.
It’s an employers market. I would approach the conversation more like “What’s the compensation progression like for associates in your group?” rather than “this salary is low based on comps, can you go higher?”.
Pay at the junior levels can change very rapidly at certain firms. My first year at my company I made $130k, two years later I made $175k and now I’m projected to make $230k. So maybe you only make $100k annualized in the first 9 months, but maybe they bump you to $150k right after? To me, that’s a great outcome.
Why risk the job over an extra 10k in those first 9 months if they’re going to bump you to $150k year 2 regardless of your first year pay?
Hi, I'm the OP.
Thanks for your perspective! It is true that it is an employer's market right now but I didn't think I could actually risk the job by negotiating???
I figured that they expect me to negotiate anyways which is why they may have offered me something lower so I just thought it wouldn't hurt to try. And if our roles are similar at all, even you're initial 130k is much higher than the ~100K I'm being offered.
But I think your approach is great so I will go into the conversation like that.
My job wasnt in brokerage - it’s just an example of how salary can progress.
I still think you can negotiate. If they say “we’re going to keep you at the $100k level for 3 years minimum before changing your pay” then yeah I would negotiate and ask for more salary.
Would you still negotiate year 1 if they said they’re going to bump you to $160k year 2? That’s all I meant by that
If you don't mind sharing, was that progression in acquisitions?
No it was on the sell side
Do recent graduates usually negotiate their first offer in a normal world
It depends on the job. If you’re joining an analyst program, you generally don’t negotiate.
If you’re the only analyst at a developer with 5 employees there might be wiggle room because there isn’t a precedent.
But if you’re the third analyst on JLLs office team in Dallas (or wherever), your pay is going to be in line with whatever the other analysts got when they first joined
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