Am I being underpaid for a 2nd/3rd Year Analyst? NYC/SF/LA Top IS Brokerage Team
Hey everyone, I've been an analyst at my current firm (CBRE/C&W/JLL) for almost 2 full years and am going towards my 3rd year. I work in a very high COL city such as NYC/SF/LA and my current team is one of the top 3 teams in the metro. I don't want to give too many details since it probably wouldn't be too difficult to find the team or firm I work for.
Recently, I can't help but feel that I'm being a little underpaid for the amount of experience I have. I average around 60-70 hours a week with some weekend work when urgent deals or closings are going on. My salary is around $65k with a 5-10% bonus and I'm nearing the end of my 2nd year. I believe my job responsibilities are typical of most IS analysts (underwriting deals, creating cash flow analysis, creating offering memorandums and proposals, aiding in due diligence and closing period). I also came from a semi-target school with internships at a small acquisitions firm and asset management. I guess I'm feeling a little jealous after seeing friends out of undergrad working for software or tech companies, working 40 hours a week and making nearly double or triple my salary even in non-sales or non-engineering roles.
I've saved up very little money in the past 2 years because rent costs are high even in suburban areas and commuting/takeout food takes a good portion of my income out. It's rather difficult to prep food and make food when I'm averaging ~12-13 hours and an additional 1-2 hours of commute time everyday.
My team does countless transactions and I know that I'm not bringing in revenue but do you think I'm being paid a fair salary? Are other IS or brokerage analysts making around the same salary in these HCOL markets? I've seen the WSO salary worksheet but wanted to get a better idea from you guys or anyone that has worked in brokerage/IS. Has anyone else experienced this coming out of undergrad/early on in your career?
tldr: Currently being paid around $70-75k all in as a 2nd year analyst going into 3rd year in a very HCOL city. It's been extremely tough to save money especially with rent, food, and basic necessities. Am I paid fairly for hours worked and typical job responsibilities or are other analysts working on more complex deals or working more hours?
Sounds like you're making a little over $20 per hour in a high cost of living city. I just checked and min. wage in San Fran is $16 bucks an hour. If you're good at your job then 100% you're being underpaid. You're barely making more per hour than Starbucks barista! Definitely time to ask for a pretty substantial raise or fund a new job.
When you put it like that, it looks even more depressing hahahaha. I know a few friends who work in IB and I think their hourly wage comes down to a fairly low wage but I guess their larger bonuses make up for it. I did get a raise last year from $60k to $65k and was told that I have been doing extremely well and was considered one of the top analysts in the pool. My job responsibilities aren't too difficult but do you know if other IS/brokerage analysts are working on different or more job responsibilities?
Sounds like you are underpaid. Given it’s a top team / brand name firm / high COL city. If you were in Atlanta it would be a different story. I’m not sure how you live on that in SF or NY - you must be in LA?
I'm not in LA. I imagine I would be able to find cheaper rent in LA depending on commute and different area. Do you think my job responsibilities lesser than other IS analysts? I don't have too many friends in real estate so hard to see what other IS analysts do for their teams.
Your responsibilities sound the same as other IS analysts.
How much in fees does your group make? If you’re the analyst for a group of two MDs pulling in $2.5 mil in gross fees per year, they are truly underpaying you. But if they’re doing $500k each, I don’t know how much more room they have to pay you.
Your base seems pretty low, but how are you still there with that bonus???? Most I know on high producing IS teams even in second tier cities are crossing well over $100k by their second year. I would start shopping around, or have a chat with your boss.
I'm not sure how I can have this talk with my MD. I just received a raise from $60k to $65k which I am grateful for especially considering a lot of people got laid off in the industry (no one got laid off from my office or team though). I also saw posts from WSO of IS analysts/associates making 50%+ bonuses and couldn't believe it. Not sure if I even received more than 5% bonus this past year.
Sure you can definitely have this convo with your MD. Base may be tough to negotiate, as that is probably the firms decision, but I'm 99% positive your bonus is your MD's decision. With how much revenue they are bringing in, they can absolutely afford to give you a much larger bonus. If they don't want to pay you a reasonable bonus, I'm sure some other team in the area would love to have an experienced analyst like yourself, and would compensate you accordingly.
You're being underpaid. Analysts with 2+ years of experience on our team (not top producing, but in NYC) will have a base of $80k + 50-70% bonus
I'll mention I work in debt/equity but still relevant. Anecdotally, one of my friends just joined as an analyst at a Greystone/Berkadia (NYC) type with 3 years experience and locked in $85k + 70-80%
Think you should speak with your boss. Your base may be manageable but that bonus is abysmal. Analysts in Colorado take home more than that.
Thank you for the insight! It's sad for me to see this because I always thought I would get a larger bonus or bigger pay raise year over year. Do you mind if I ask how much gross fee the brokers are pulling around? We pull around $15 mil - $20 mil in gross fees and run a fairly lean team, all IS for several asset types including multifamily/office/storage/retail. Are your analysts working on complex financial models or any specific job responsibilities that seems to differ from mine?
I'm not sure how I can bring this up with my boss if they gave me a raise a few months ago. My base seems alright but we really only receive a small bonus ($4-5k at year end). I don't want to come off as an employee only looking for money and this is also my first FT job out of undergrad.
Can't speak to the fees but we have a deal pit of analysts and associates so for my team, that's 5 analysts and 2-3 associates who split doing analyst/broker work.
We work on all deals and are actively sizing/shopping up and down the capital stack. So it's more "finance" intensive but it's not like we're doing God's work you know? All brokerage analysts more or less do the same thing with some nuances.
I suppose given you're a first year, you can discount the bonus for 2020 (COVID, etc) but I would plan to speak with your boss come fall of this year to see where you may be lining up in the bonus pool. Especially if you feel you deserve a better bonus. Cause honestly, $4-5k, even during COVID, is weak but better that than nothing. That number should exponentially improve for 2021 as you have more experience, are not a first year, and will have solid transaction experience. That would deserve at least double of what you received in 2020.
You should have been making $100k+ in Y2 at a top broker IMO. You’re getting shafted.
Thank you for being very straight forward LOL Glad to know I'm a bit under the average salary/bonus.
Just for an additional data point, In my first year as an IS analyst in NYC I worked on a team that grossed about $11mm in fees across 15 brokers (not overly impressive), worked 60-70 hours a week, and my total comp was still $90k ($50 base + 80% bonus).
It’s so egregious that their names should almost be public.
You are underpaid
I made more than that as a 1st year IS analyst in a lower COL market
Start looking man, maybe try exiting to a sponsor if you are not trying to be a broker full time. Your bonus and base should be much higher, especially if you are producing.
Go look for something else, if you receive an offer or something go talk to your boss that u are being underpaid and got an offer. If he really appreciates you he may give a raise if not say bye-bye to him. Dont be his bitch anymore
If you like the team that you work with and like the work, I wouldn't just say "F this I'm out of here." Do your research, talk to friends, have some "comps" and show your bosses why you are underpaid and ask for a raise. Not a comfortable conversation, but you gotta look out for yourself! Acknowledge the raise they just gave you and tell them you're thankful, but SHOW them the math... If they say no then you should have no qualms about getting the hell outta there. I have a friend who was criminally underpaid in a similar role, she went to her bosses and calmly said hey this is what the market is for people with my experience and what I am contributing to the team. Her bosses took it very well, realized they had been in the wrong, and fixed it almost immediately. Not everyone will take it like that, but I think that's a good way to go about it.
At the level you're being comped, I wouldn't even bother with the conversation about a raise. Polish your resume and get to steppin'.
I know a few analysts in smaller markets, Omaha, Birmingham, Jackson, Knoxville, OKC type markets. They are making at minimum what you are making, so you should def ask for a pay bump.
I'm surprised to hear so many analysts from smaller markets are making more than where I'm at. I wonder if it's because I'm one of my managers / brokers newer hires and they haven't had too many analysts before me.
Newer hire or not, that pay is an insult. Especially considering analysts in cheaper COLs make more than you do. Ask for a pay raise or leave, screw these guys for taking advantage of you. All these pricks that are MDs take analysts for granted, but the reality is we are the life blood of this business. We're the ones playing with the numbers and giving values, while they jerk around the golf course. I used to be an analyst and know the pain and the energy they put in. I go out of my way to mentor and help grow these kids because frankly they earned it. Alot of the MDs you see never were analysts back in the day and they dont understand the grind.
Find a new job. As a Senior analyst with 5 years experience that includes a $10K promotion from your salary, in HCOL city mentioned above, don’t believe that employers will change. You should do what you can to find another IS at a brand name shop. It’s not worth the additional stress to pinch pennies when you’re putting in that many hours. Understand you’re working at a stepping stone which is a conclusion I think you’re seeking to validate
Piling on at this point but for the sake of providing an extra data point - you're significantly underpaid. A friend with the same yoe, significantly similar role, same firm tier, but lower COL market (DFW/ATL) is making around 90 all in. Good luck with the job search!
Thank you, I'll have to start searching to see what salary range I can realistically hit. I enjoy working with the team but have always felt that most of the analysts/associates were a bit underpaid especially considering we live in one of the highest COL cities in the world. Can't believe so many 1st year analysts in other lower COL cities are making more than me all in..
I worked on a top team in the NYC metro and my pay was about that. I’ll say this; most of the reason you’re being paid what you are is that your bosses probably know that you’re getting very good experience and you’re going to be able to leave when you feel like it.
I have buddies that worked at the top teams and made a bit more than you, but not much. The reason being is that when they left (like myself) you have a great deal sheet and your salary goes way up.
If you’re getting good experience, stay until you see a position you really like.
That sounds about right. I figured with the status and reputation of the team, I could probably have better opportunities to jump over to the principal side or other roles in real estate. I'm sure my bosses know that they could easily hire another college grad or someone that got laid off from COVID since they don't even need to look for hires. I think a lot of people already try to network and email our team just to try for a FT role.
Could I ask how I might be able to use my team's reputation if I ever jumped to the principal side? I know most people network with current principal groups they have worked with but would I just try to highlight how many deals/transactions I've been involved with and how would I state that I was involved with underwriting $3B in acquisitions/dispositions during my time in IS?
Going to jump in as a devil's advocate here - I don't think your salary is nearly as low as people are making it out to be. It sounds like a lot of bankers and college kids are losing sight of the fact that you are an IS analyst that was hired from UG and has been promoted exactly zero times. Your bonus is criminally low though.
I think mid-$50s -> mid-$60s -> mid/high-$70s is fairly standard for IS analysts in years 1/2/3 of their career straight out of undergrad, but your bonus should have been something like $10k/$15k/$20k at absolute minimum, especially if the team is performing well. I get that you are working hard, but keep in mind you are just beginning your third year of an entry-level job, comp doesn't jump that much without a role change.
I don't know where people are getting the idea that there is money to be made as an IS analyst. The money will come when you either A) make the move to producer and start, well, producing or B) take that "JLL" or "CBRE" name on your resume across the street to the principal side. Stay strong young king.
Thank you for the insight Beers, I appreciate you keeping it real. I always felt like my salary was a little lower than normal but it seems like a lot of people on this forum are killing it which is great for them! You're right, I haven't been promoted yet and I'm not sure how to bring up bonuses to my bosses without making myself seem like a greedy lad who only cares about the money. The team is performing pretty darn well, I'd say around $1B in investment sales a year unless that's low compared to other groups in other cities?
You're very right though, this is my first entry level job out of undergrad and I've seen a lot of close friends make a lot more after a role or company change. Thank you for the words lads, I'm going to keep going strong and see where this year takes me. I'll make a decision soon enough to either become a producer or continue on to the principal side. Cheers to you lad! :)
I'll just add, I hope my initial post didn't come off as harsh. I've been in your shoes and I know you are grinding, plus it can be tough to see peers in banking/principal roles (or just blowhards on a forum) making more than you for the same hours. I will say, good for you for sticking it out, because I've seen people jump ship impatiently rather than wait for the right opportunity, and discount themselves in the process. Definitely be proactive in shopping the principal side or moving to broker, but make sure it's the right role/team, because you only get to make that jump once.
I'm not sure if you've worked on the brokerage side but this is just wrong. I know for a fact in NYC every single brokerage firm ( that has an analyst pool) from CBRE to more boutiques like Meridian pay their analysts at least 70-75k base and those are mostly out of UG. SF is a similar COL so he's absolutely getting screwed. I pulled 110k my first year out of UG on a top IS team in NY.
Analyst1 -> Analyst2 -> Sr Analyst1 from 2016-2018 in a gateway market (Not NYC) at HFF/JLL/CBRE and my comp was essentially exactly what was described above, and I would not be surprised if it's moved up at inflation+ over the last few years. Might I suggest that your very recent, anecdotal, NYC-centric experience does not invalidate other worthwhile data points?
Literally never heard of Meridian but looks yucky.
I know that When I was at one of the shops mentioned, analysts including myself were not paid that. Our bonuses were large on occasion but our bases were basically what he’s describing.
How long ago were you an analyst at one of the brokerage/IS shops? And do you mind if I ask what you did afterwards?
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