(Hopefully I don't get a ton of flak for this if the answer is a resounding yes)
I'm about 2.5 years into my career and am very interested in CRE (which is where I work now). I'm currently in AM and want to take the next step into acquisitions, but don't really want travel as the few times I've done it for my current job I've honestly found it tiring and kind of a waste of time.
I'm also considering switching out of CRE and into a more quantitative role. I don't want to prolong the switch if acquisitions is always going to require a lot of travel, but given that getting into an acquisitions role was my goal since I graduated I'd hate to give it up so quickly. While I know there are a lot of other factors that go into a job, this is a big consideration in my end goal.
Thanks!
I would say this is a very "it depends" type question.
Every firm organizes its acquisitions teams/systems differently. But really the biggest factor will come down to how geographically diverse the firm's mandate is and how much the segregate the world into territories for acq people.
Still, it's pretty normal/required for site visits during acquisitions, as well as on the ground scouting/networking (the value of such varies with asset types/deal sizes, etc.). Asset mngt is usually not exempted, they often visit during due diligence and make periodic visits during the holding period.
I guess my best "advice" if you want to avoid travel is to work for firms that keep themselves geographically bounded (I mean travel becomes more common the more senior just about any role gets in real estate). There are some BIG names in regions like the NY tri-state, DC-MD-VA, as well as SoCal and others (state regions like Texas and Florida maybe good examples) that could be fun to work for just the same a global name. Still, they might do a lot less frequent acquisitions so the nature of the job is different.
Thank you so much for the detailed response, and unfortunately I do think you're right. I'm at a bit of a crossroads now for my career and don't want to be constantly checking firms for this huge caveat in the future, which is annoying because the industry is interesting to me! But thank you again, looks like I'll probably be focusing on trying to switch to a more quantitative role outside of RE.
You may want to look for roles in the "debt side" of the business. Generically less travel at all levels (not zero to be sure), as much more of the "ground level" stuff can be outsourced or given to specialized people. Plus, plenty of more "quant" roles that likely have little travel.
If you want to move into more quantitative roles that is an entirely different discussion.
Assuming you are in a decent market, there should be quite a number of firms that only focus on that market (both local owner operators and large shops that have regional offices). These roles would have pretty 0% deal related travel as you'd be able to drive everywhere.
Depends on the firm. Some firms analysts travel always, others never, others only when you are awarded the deal. Some firms the senior acquisition officers need to see the deal before you bid on it. At other firms, you don’t travel until you are awarded the deal. If you don’t want to travel, I reccomend looking to work for a local developer / investor that invests in your city only. That way when you do travel, it’s in your city.
I know you said you found traveling to be a waste of time, but for real estate it really is essential. You learn a lot about a deal when you see it in person, walk the units, see the mechanicals, view the roof, what is the area like, and how does it compare to its competitive set. While it may be less needed in asset management, in acquisitions, you need to see the asset you are buying. It’s hard to do everything off a spreadsheet.
You're definitely right, thank you! I think I probably worded what I meant a bit incorrectly though. Being at the property does help but when I had to take a plane pre-covid for my current job the time spent traveling (leaving work early, driving to the airport, on the plane, going to location, coming back, driving home from airport at midnight, etc.) was just personally not worth it and not really something I'd want to do often. But again that's just personal. I appreciate the response though!
I totally understand that. Work travel is exhausting. Especially day trips if you fly in, have a meeting, fly out.
Varies. As said above, it depends on the firm. I have actually seen AM guys travel more frequently than Acquisition guys. Acquisitions guys really only go to do the property tours and or site visits during DD, but the AM guys typically check in frequently on the PMs on the ground.
Luckily our AM team doesn't personally handle any kind of PM or leasing so we don't travel very often, but I think I'm likely going to try to move outside of RE (or maybe go for some kind of CMBS/CLO research) since I'm not a fan of all of the hassle that comes with travel. Thank you very much!
Would love someone to chime in but I bet CMBS loan originators will travel to the largest assets in the pool and / or their specific loans. The research teams at the ratings agency probably travel as well but that’s just a guess from me. I have friends who do real estate equities investing and they even travel. It’s not very much, maybe a few times a year, but they will go on property tours and see competitor assets.
Great article to discuss why you need to tour assets: https://www.selectleaders.com/resources/naked-cyclists-and-knowing-whos…
At my former firm, travel at the Analyst -> Senior Associate level was limited, and people at those levels were usually eager to get the chance to travel. Some of it would have been to tour assets, others to attend conferences or meetings and call on potential targets.
VP level and up, travel was substantial. It was more heavily related to prospecting and deal making vs touring assets. We did a handful of deals per year, typically large portfolios or corporate acquisitions, so there were less asset tours.
In addition to the lever of geography that was already mentioned, the sources and types of deals will matter. If your company gets lots of inbound dealflow and primarily does fewer, larger deals (office towers in gateway markets, large portfolio SLBs, etc) than there will be less travel. If your acquiring more single assets or are operating in a sector or at a cost of capital where there will be significant competition for dealflow, there will be more travel related to touring and prospecting, respectively.
Thank you for the response, I appreciate it. For some reason I just really don't like traveling, and since I'm at kind of a crossroads I want to make sure I'm not starting in an industry that I'm going to dislike down the line!
This point that travel comes with seniority is generally pretty accurate. I will add, that "better" travel comes with seniority as well. Meaning, you are doing cooler stuff in general (and having an analyst or associate doing the grunt work back in the home office), so meeting with "deal makers" or investors or going to conferences isn't as bad. Plus, with seniority you are picking your travel times and setting your own schedule much more of the time.
Travel at analyst/associate level is often by commandment and often for rote process, and is thus more boring.
Plus, even at "fancy" firms, junior people are probably staying at the Courtyard Marriott, not the big Marriott with cool lounges or even the Ritz or whatever (not that senior people can or will stay at fancy places all the time). Plus, at more senior levels, you probably have use of an executive assistant in booking and managing travel. In short, its' a different experience. Plus, just being able to hand your stack of receipts for travel expenses to an EA and never see them again is a luxury not afforded to analysts/associates.
But real shit part of travel for junior people is that you must do your "Regular" work at the same time. So you may be legit jamming on spreadsheets on the airplane or in the hotel room, as opposed to having fancy dinners and cocktails to "network".
Bottom line.... all business travel is not equal.
Here is a simple fact (and I admit I probably take this for granted), the more you travel, the faster you earn "status" with the hotels and airlines. That shit matters, I arrive at the airport, I head to the Skyclub (overrated, but better than the shit in the terminal). I might get upgraded to business class, or least get the better economy type seat (do not expect firms to just pay for that shit, some might, but its rare, most are getting upgraded by status). At the hotel, I may get an upgraded room and always access to the concierge lounge (at the top of the hotel with cool views). These stupid perks are nice, and frankly, traveling without them seem awful at this stage, but I know I didn't have any for several years of just sporadic business/personal travel. Even having Clear/TSA Pre/Global Entry make a difference! (hint - research credit card travel perks, whole world there to explore).
I guess, to the OP, hating travel at the junior level maybe shouldn't completely jade you against travel at the senior level, not same experience.
Go watch the movie, Up In The Air, anyone who is a true business "Frequent Traveler" will identify, both the good and the bad.
Still, if you hate it, you hate it. You can have a ridiculously successful career without it. BUT, there are many paths where it is just par for the course, so decide if that really is the binding constraint you want to live by.
Thanks for this comment. To be honest, most of what you said was stuff I hadn't even thought of, so I appreciate the different perspective! It definitely changes how I'm viewing travel overall.
Yes. There are many smaller firms that only invest in their local market.
I would look for firms that are regionally restricted and therefore their employees don’t need to travel as much. I know one guy that has had a very successful 30+ year career that doesn’t leave NYC unless absolutely forced to (he hates planes). He is a MD at one of the large institutions and it hasn’t messed with his career at all.
I will echo what others said as well. Once you get the hang of traveling it does become easier - you’ll know how to pack efficiently, the little tricks to get upgrades/better seats and with some creative credit card usage/status consolidation can parlay your work travel into free personal travel. I used points to take 8 family members on an all expense paid European vacation business class (with free hotels) in 2016, did a first class ticket to South Africa for a safari in 2018 and had a 3 week trip to Japan scheduled in 2020 for the olympics that was totally paid for with points (we rescheduled to 2022 since I’m not sure Japan will allow non participants into the olympics this year).
That's really interesting. I thought it may hinder my career to only be looking for regionally restricted firms but I guess maybe I should look again to see how many I can find. Also you're definitely right about it becoming easier over time.
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