Career Advice for a recent graduate, CRE vs. Commercial Banking

ooyellowoo's picture
Rank: Chimp | 6

I am a recent graduate (May 2019) from a semi-target looking for career advice. I started a credit analyst position at a small commercial bank (<$10B in assets) two months ago. The pay is below market at $55k. I recently received an offer from a small CRE shop as an analyst in transaction services. I have not discussed pay yet but I believe I will be able to negotiate a slightly higher salary (~60-65k). From my understanding of what was discussed in the interviews, I will be researching the feasibility of projects, valuing properties for their highest and best use, and presenting the properties to clients.

I am not too sure about which career paths I want to take in the future but I have read that commercial banking is more flexible. My original exit opportunity plan was to go into corporate banking or one of the CRA's however, I am curious about how my career can progress if I choose to take this CRE position. I have read that it is easy to get pigeonholed in the CRE industry.

Any advice and comments are greatly appreciate.

Comments (3)

Feb 18, 2020

So, what does "small CRE shop as an analyst in transaction services" really mean? I am assuming this means brokerage, but doing what type of assets? Is it investment sales or landlord/tenant advisory? I'm guess this is an institutional type firm if they can pay analyst 60-65k, but what type market?

In general, I am not sure how much you understand about the world of RE, thus, I think you should be sure you have a strong grasp of what you would be taking before you jump.

I don't think getting pigeonholed in CRE as a new grad analyst is much of a risk at all, and you can probably move back to banking while you are still in the junior stage of a career (not that this is common, mainly because people tend to want to stay in CRE once they enter, assuming doing well in it).

Still, it is generically easier to move to CRE than from CRE, but why move unless you are more or less committed at this point in time?

Feb 19, 2020

First off, thank you for your comment.

The firm's specifically helps non-profit organizations find properties catered to their mission (e.g. schools, health centers, theaters). It will be more landlord/tenant advisory as the transaction services department's role will be to facilitate acquisition and disposition transactions tailored for the NPO's. Another responsibility of mine would be to value properties for highest and best use.

The salary range I put is mainly speculative since I live in a HCOL area and researched the pay for 'transaction services analysts' in big CRE firms.

You're absolutely right, I do not understand much about the world of RE. I was in the process of interviewing with this CRE firm before I accepted my current offer so I figured I should finish with the interview process. The work that the company does seems cool and unique so that's what mainly drew me in.

Feb 18, 2020