Any insight on Leasing Brokerage for Account/Portfolio pursuits (Mostly Tenant Rep)?
Ok, I feel like I am being tempted by the fruit of another here, and could use some insight.
Background: currently a second year analyst working debt and equity at a large brokerage shop (they do leasing, cap markets, management, you name it). Mostly doing multifamily deals ranging from $3mm-$20mm. I was a lib arts major in college, so when I landed this job after countless CRE interviews I thought I had won the lottery. But I am honestly getting bored of it, and the only next step is to become a (debt) broker, which I'm not sure that I want to do (I'm 24 years old so still feel I have time to make a decision before jumping). I work in my firm's suburban office: the reverse commute is horrendous and everyone here is 40 years or older. I know I probably sound like a whiny millenial and that the age/location of my office shouldn't matter, but an opportunity has opened up that has somewhat intrigued me...
There has been an opening with a team in our CBD office. This team is 6 producers who focus on Account/Portfolio work representing tenants and owner-users who have multiple properties across the nation. Properties include office, retail, healthcare and industrial. I am still getting a sense of their volume, they seem to be doing well. All I know about the comp is that its a base salary and bonus on every closed transaction.
My only concern is, leasing seems to be (especially from what I gathered on these forums) a black hole in terms of exit opps. I unfortunately do not know where in the industry I want to be in 20 years, so it's tough for me to make the call to pursue this or not. Ultimately I made this post to get any insight on this line of business.
obligatory bump
Is leasing really regarded as a black hole?
Even if it is, you already have analytical experience so you could sell that down the line.
As people have said in this forum; leases are the building blocks of a building's cash flow. You should always have a good understanding of leases, net leases, triple net leases, etc.
Just my two cents.
Maybe not so much a "black hole", but people on this forum tend to shy away from it. Perhaps cause WSO is more finance oriented (tenant rep is arguably the least finance based side of the industry)?
Another consideration is the value of tenant rep...a 4% fee on total consideration of a deal seems pretty high to justify, will these fees be adjusted in the future (I guess this would be an issue for any side of brokerage)? What role does a tenant rep play besides touring around? Lease negotiations are something that are shot off to the lawyers at the end of the day. Maybe I am being pessimistic, I just don't want to pigeonhole myself.
Leasing is not a bad start if you plan to get into AM. I've seen plenty of guys start off there and are now in a AM with an operator. If you're goal is REPE or more finance oriented position like acquisitions, I would then say it may not be the best route.
While I generally agree with you, I have met with a few people who have transitioned from leasing to REPE. You probably just would need additional education/certificates etc.
As far as AM, I always thought there was a MUCH stronger preference for Agency (Landlord) Leasing brokers, as opposed to tenant reps.
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