I have been talking to a few brokerage shops lately trying to learn the difference, and there is mention of the different platforms provided by each brokerage shop. I was wondering if anyone had more insight to different shops to really highlight the differences between the Eastdils/CBRE/HFF/ Marcus and Millichap shops and what the platform differences really mean.
Here is what I think I know so far from what I’ve experienced and heard, feel free to add to it.
CBRE – largest network, divided up into regional offices as a full service giant, (REPE, Project Management, Leasing, Sales) Leasing brokers may share deals with IS guys who might pass development deals to Project management. Pretty entrepreneurial Draw/ eat what you kill / Salary depending on senior broker.
Eastdil – Bonuses are split evenly across all offices, regional offices usually get deals from large institutional clients that have a relationship with Eastdil for Investment sales. Not full service mainly Investment sales and has an I-Banking arm.
HFF – Investment sales/ Mortgage broker. Large investment sales deals come to HFF offices and are usually attached to a debt deal as well. HFF find the capital stack as well as making the Investment sale, deals come from the Investment sales side and sometimes have a debt piece attached that HFF will consult on. Not full service but has a mortgage arm and good relationships with lenders
Marcus and Millichap – Varies by market, has leasing and investment sales. Big on Multifamily it seems like in my market, and has a very grueling process to make it up from the lower ranks.
I would really like to hear your guys’ thoughts and maybe more about NGKF, C&W, JLL and smaller shops and what their platforms look like in your markets.
NAI and Lee & Associates both let people own their office, like you operate under the LEE/NAI brand, but own the office/ rights to use that name in that area with a set of partners.
CBRE, Cushman, JLL, Newmark: everything. leasing, investment sales, property management, valuation, debt/equity finance. Marcus and Millichap: generally, focused on lower price point investment sales Eastdil/HFF: investment sales and debt/equity finance
Not exactly what you are asking, but still pertinent. CBRE (310 Billion 2016) and JLL (214 Billion 2016) are by far the largest in terms of transaction volume. Eastdil, NGKF, CushWake and Colliers were all between 110-100 Billion in 2016. Everyone else was below the 100 Billion mark.
I agree with what Ricky Rosay said above. I will add that in my experience, Marcus and Millichap lacks the sophistication of many of the others mentioned, especially CBRE/JLL/CushWake. Eastdil and HFF have a narrower range of services but carry a lot of name prestige.
Are these USA or Global figures? Because CBRE and JLL have offices all around the world which may skew the numbers if you only care about the best USA firm.. Not sure how wide Eastdil is.
Very good point, those numbers are global and I should have mentioned that. They are from the NREI website.
The common denominator in each firm you listed is Capital Markets; Investment Sales and Debt/Equity Placement.
So, assuming that is what you are interested in, it's important to note that no matter what firm you work at, the resources/platform will vary depending on your office and team. I have seen some teams at CBRE/JLL that don't get dick in terms of resources, then others that are fully outfitted with analysts and marketing admins. Same goes for M&M and more entrepreneurial firms.
Overall, I would opt for a CBRE/JLL type shop. Working with leasing brokers, project managers, property managers, etc. are all opportunities to meet more potential clients..... for a small fee, of course.
Big Difference in Brokerage Shops? (Originally Posted: 07/27/2017)
Is there a big difference on who does the deals for owners/investors? In terms of cold calling? Reason why I ask: I currently work in an assistant role for one of the big shops (JLL/CB/C&W etc) and have always had the goal to become a CRE broker. I recently applied and might be getting an offer at a smaller shop to become a broker (Top 15 shop). Knowing that it doesn't have the "name" as the bigger shops, am I hurting myself for going to a smaller brokerage? Should I wait to be a broker at the bigger shops, or take a position right away at a smaller one?
Any advice is much appreciated!
As someone who works at a small one, go big or do something else. Small ones are either guys who have a ton of clients and want good splits or guys who cold call all day long. Most of my time is spent trying to figure out how to do what I do and explaining to potential clients who I am and what my company is. Unless you have a lot of HWN clients or are absolutely incredible at sales, it's best to just stay big. If you're dead set on being in sales asap, look for a good team at like (mind you I'm on the west coast) NAI, Colliers, NGKF, Lee & Associates, SVN, Marcus & Millichap.
Thank you for the reply! I am also on the west coast and one of those shops you named at the end is who I applied to and might get a brokerage position at. I call them "smaller" in terms of the amount of money they bring in compared to the top brokerages like CBRE, JLL and C&W. I am set on being in sales ASAP because I'm a recent graduate at a west coast UG and I believe if there is a time to get into brokerage, it would be now (no rent, big bills, etc).
Stay as an assistant if the team is a high producing team. Than work your way to being a broker. If you've been with them for a while, they will be less likely to pay you extremely little when you do your first deal. And hopefully more likely to feed you deals / leads to pay you because they like you and want you to stick around.
Do you mind just giving us a run down of what you do now? It seems like you're just starting out, I don't want you to make the mistakes I did because it takes a while to dig yourself out.
I started the position as a research analyst intern at the end of my Junior year in college. I was kept on the team over summer and became an assistant to help with marketing packages/proposals. Kept the job throughout senior year and i am still here. In terms of your question, I mostly help with marketing packages, research, etc. You're right though, I am just starting out, as I just graduated UG a couple months ago.
I would stay at the big shop. Learn the market/deal process/sales techniques while you are on a salary and on a team that you can ask questions. Then, in 1-2 years ask your team if you can start cold calling to bring in business for the team in addition to your other tasks. Once you start getting meetings ask to switch to being a broker full time.
By doing it this way you don't spend your entire first 2 years as a broker learning the above while on a draw. Also, if you decide you hate calling you won't be $$$ in the hole due to your draw.
If they wont let you switch to brokerage full time then use your experience to move to another big shop as a broker.
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