Comp for Different Types of CRE Lending

Temujiin's picture
Rank: King Kong | 1,365

This information may exist out there, but I haven't been able to find it effectively. What is really the difference in comp between these different types of CRE lenders? My understanding is that life co's and balance sheet lenders would start a new analyst at ~65K base + 5-10k bonus. CMBS/conduit ~80K base + 20-40K bonus. And i have no clue what debt brokerage would get. Does this seem about right?

  • Life Co
  • Balance sheet lender (bank)
  • CMBS/Conduit
  • Debt Brokerage

Comments (13)

Aug 6, 2017

to add to this, does anybody here know of any summer analyst programs at any of these places? Thank you!

Aug 6, 2017

I know most large banks, if not all of them, will have summer interns in their CRE groups. I was at BoA last summer as one.

Aug 6, 2017

Thank you! I know JP Morgan Chase has a program and they are accepting apps right now, didnt know BoA had one, is there a particular name for the program, when do they typically start accepting apps, how was your interview process? Did any of the interns get a full time job after graduation?

Aug 6, 2017

It just falls under Wholesale Credit, I'm not sure how you go about getting CRE in particular beyond requesting it in most cases. I was able to apply directly to the CRE position because of a university connection that posted the position. Wells Fargo also has a big CRE group that takes interns as well. As to getting full-time work, most do but I did not as my group was authorized to bring anyone else on full-time when I was there.

Aug 6, 2017

I would say you make the most as a first year at an REPE Lending fund.

Aug 8, 2017

Can you say what a reasonable range out of school would be, what companies you're referring to, and if they hire straight out of school? Thanks

Aug 6, 2017

Comp for CMBS is about right. I know someone who is moving into an associate role (5 yrs experience) at a top BB doing CMBS Lending and he is getting 160 base+25 bonus. Hours are supposed to be long though, probably 70-80 a week.

Best Response
Aug 7, 2017

Life Cos, Banks and CMBS lenders are all pretty competitive when it comes to hiring analysts (in terms of larger institutional shops). Bases are going to be 70k-85k with bonuses ranging from 10%-30%. You don't really see the bigger comp differences until you get to higher levels (when bonus % change significantly) and things are relying on your production/relationships or the AUM you manage.

As for summer internships: All of the big banks have programs; Wells, JPM, BofA and most of the life companies bring in a couple of interns every year: Prudential, Metlife, TIAA, AIG, Barings, etc.

Something to keep in mind though: Life Company world is a bit different than bank world in their hiring. The culture isn't burn and churn and they are typically looking for experienced hires vs. a fresh-grad. I've worked at two of the big life companies (I changed this year) and we've not had more than a grand total of 15 summer interns in the last 7 years. Some of that was the recession, but it doesn't make much sense to bring in a huge intern class if you aren't going to be offering those kids jobs at the end of the summer. I know of only 1 person that has received a full-time offer after interning and he was a repeat intern, interning both his sophomore and junior summers. This year, we are considering offering a spot to an intern we really like, but to do it, we have to offer a spot that is currently open, which means that the group wouldn't have an analyst for 9 months to a year.

I've hired for around a dozen analyst/associate spots and my group has never even interviewed a fresh-out of school undergrad and the only fresh-grad MBA/MSRE's we've interviewed had RE or Finance experience prior to going to school (and we've never actually hired one; the associates/sr. associates that have masters degrees all had a couple of years under their belt somewhere else as most of them got them while still working). I know there are a couple of fresh grads hires here and there in other groups, but they are few and far between (maybe a grand total of 5 in a company of 200 people). There just typically aren't analyst programs at life companies like there are at banks and that hampers hiring of fresh grads because then your hiring manager has to teach you everything from the ground up, which most people aren't totally prepared to do.

    • 4
Aug 7, 2017

Hi! Thanks for the detailed response. Do analysts for DUS agency lenders-Berkadia, Northmarq, Arbor, Berkeley Point, Hunt etc get paid typically less than analysts for banks, CMBS, life co's? Atleast at the junior underwriting analysts level? If eventual goal is underwriting, would you say undoubtedly, life cos, banks, CMBS shops offer a better experience than agency lenders as you get to learn to underwrite different product types and not just multifamily.

And lastly, any insight on hiring (summer/full time) at agency shops?

Thank you!

Aug 7, 2017

I don't have experience with agency lenders so I can't comment on comp.

Generally speaking, I would say that being at a shop that does all asset types is better than a shop that only handles one asset class. However, any job is truly what you make of it.

If I had two resumes and one had produced 100 million in multi family at an agency lender over the last 2 years and one had produced 100 million at a life Co over the last 2 years, they would probably both get interviews.

Only having multi experience would definitely come up as part of the hiring conversation, but it wouldn't be a deal killer as long as you showed you were willing to learn and didn't come off as a complete idiot.

Hiring in RE isnt very structured. You do tend to see a lot of stuff pop up in March/April though after new budgets have been established and bonuses have been paid.

    • 1
Aug 8, 2017

From my limited experience: DUS analysts - 60-80K base + 15-30% bonus.

Aug 27, 2017