Would you expect all-in comp number and structure to vary materially between a development analyst/assoc and an investment analyst/assoc at a big diversified RE developer? For example, Hines has jr development guys working on their own deals and also has jr investment guys on the fund management side. Do you think there's a big spread here?
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Depends on the asset and size of the investment platform
Also I am a big fan of White Collar
For Hines it's a complicated answer as a lot of (if not all) development analysts/associates not only work on development deals but also underwrite and close local acquisitions as well. I believe from a base salary standpoint it's probably pretty similar between development and fund analysts/associates, with the main variation being across cities and markets, rather than the position itself (cost of living is a lot cheaper in Texas versus NYC or SF). As for all-in comp I'd say that the development guys may be better off (mainly at associate level, not analyst) as they can sometimes participate in deals and get decent upside. Upside is a lot more limited in a core fund or REIT that targets bare-bone returns. Also, to be clear, the vast majority of fund investment analysts/associates at Hines are based in Houston, while the development people are in every major city. Comp for development people on the West Coast is usually $70-$75K base + 20% bonus for analysts, and $110-$130K base + 20-25% bonus (and maybe participation in deals) for associates (from what I've heard/read).
Any insight on development managers?
Can you clarify what you mean by "development managers"? Managers at a firm like Hines, or a firm that more specifically does development management projects on behalf of other clients?
This is going to vary so much based on the company, market, etc. Real estate isn't anywhere near as "lockstep" with salaries as NYC investment banking is and it's hard to give a solid answer.
Thanks for the replies everyone. Even the "it depends" answer is helpful in this case because for some reason I always assumed the investment/fund management side would generally be higher comp. My rationale being you scale a lot better and can work on tons of deals while the development guys have to focus more intensely on fewer projects. Also assumed development groups ran leaner in headcount and salary/bonus and got a bigger piece from carry (so higher risk but higher potential comp - though I ignored this piece in my assumption that Dev was lower since I'm talking about junior roles where that's prob not a factor)
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