CRE Multiple Entry Level Offers - HELP

Monkeys,

I currently have numerous options to break into the CRE industry, however the options are in different facets. I am an upcoming college graduate and I can not decide what the best path is. Ultimately, I want to achieve the obvious goal of one day breaking off and starting my own PE, development, or brokerage company. My main goal out of college is to learn, followed by my next goal to pave my way and make money.

The options consist of an analyst role on multifamily portfolio team for a reputable PE company, analyst roles in big shop brokerages, analyst roles in reputable retail developers, and analyst roles in reputable office developers. I have done some good research into all companies but I am just uncertain what is best.

Again, as I enter the industry I care more about learning than making money... and most importantly setting myself up for success.

 
Best Response

Congrats and good work. Nice problem to have. Hard to answer you're questions without more details. I would consider the questions below when assessing. This isn't comprehensive.

MF Portfolio team at "a big shop" * Is this asset mgmt? Do you want to do that? * How well capitalized are they? * How permanent is that capital? * What class of MF?

Brokerage * What asset class? * Major market? * What does their deal flow look like? * Is that shop good in you're market? There are places where some of the big shops suck.

Retail Developers * How well capitalized are they? How permanent is that capital? * What type of retail? * What markets? * How does their track record look? I'd be interested to see it if you have leverage via multiple offers. * Who will be you're mentor at that firm? This would ultimately drive my decision

Office Developer * See the retail developer piece

 

Nice - Sb'd - I like your emphasis on mentors (and the fact you didn't mention compensation anywhere in your response)...

Just to add to add, maybe consider also analyzing your own strengths and do your best to narrow your search a little (there is quite a wide disparity between, PE, brokerage and development)

"Average people have great ideas. Legends have great execution"
 
therube:
Ultimately, I want to achieve the obvious goal of one day breaking off and starting my own PE, development, or brokerage company.

Each of these are VERY different things. I don't expect you, still being in undergrad, to know what you want to do or why you want to do real estate. Try brokerage, if it is in a major metro market. It will give you the most balanced understanding of of different product types, e.g. Office, MF, Hotel, Retail, Industrial, and you will develop a great skillset and major contacts in the industry because you are touching with many different buyers and sellers. Be warned the hours can be very long but pay is usually very good.

Another great way to learn is Asset Management. You cover CRE more holistically than originations/acquisition and where we are in the market cycle might layoff proof you.

 

My questions would be similar but would include the following:

Developers: Who funds their deals? Do they have to source equity on a deal by deal basis (not great)? What is their investment committee process (how onerous)? How many deals have they done in the past five years--are they active? What is their five year future development pipeline? How big is the development team (lean is much better IMO)? Do they require pre-leasing and/or construction financing to get projects moving? Are the projects in various phases that you would get to see the full cycle of development (ie some in entitlements, some under construction; very valuable)?

Brokerage:

1 question: who is the mentor and do you vibe well with that person (so critical in brokerage)? will you be doing tenant rep or landlord rep (hopefully landlord)? how many listings do you have and from how many different clients (15+ listings is pretty good in a major market, want diversity among clients so you are not too reliant on one group)? Will you get exposure to pitching listings, doing property tours, writing and negotiating term sheets, etc (don't want to be just the tour guy)?

 
Over_Leveraged:

Congrats on the offers but RoleSSSS in brokergage, and retail & office development and a REPE role? Jesus, how many job offers do you have? That's quite a feat, a lot of members struggling to land just one.

I think you should be the one giving advice, tell us what your secret sauce is.

I'm honestly not sure if I believe it, what's the likelihood that he ended up with offers from all these areas, all the same time, that he hasn't responded to? I'ts not like on-campus BB recruiting where everybody interviews and offers at the same time, real estate is smaller and more random.
 

It's sure as hell not like OCR, CRE recruiting doesn't really exist other than a few development programs at CMBS firms and some development programs at some crazy prestigous dev/REPE shops plus the few programs like C&W PREP and CBRE Wheel, landing that many offers is definitely super rare but then again with the connection driven nature of CRE...someone from/connected to a real estate family in a primary market could potentially land that many positions with the right opportunity but..... then again would potentially not be coming to this forum for help..?

That's why I want therube to share his secret sauce! (If it exists)

 

Congrats on the offers. Sounds like you should think more about what your end goal is in terms of opening your own shop. All three of those facets of CRE are different, so if you can research more (and network with industry professionals) to determine which line of work is truly of most interest to you, that should be a big factor in which role you accept.

 

Hard to give solid direction when you yourself don't know which path in the industry interests you most. There is definitely nothing wrong with that, I think it's hard to know until you have a year or so of actual experience under your belt.

If the brokerage job is with a TOP broker (CBRE, JLL, Eastdil, HFF) in a MAJOR market, I think that would be the choice that gives you the most flexibility going forward and the widest range of experience. You will also likely get to interface with a ton of different people and sectors, and have a name on your resume that is recognizeable nationally and among various types of RE companies.

That said, I don't really think you can make a "bad" choice here.

 

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