Will be working for a large corporation in their RE division dealing with very large projects and such. Won't be modeling in Argus, but I believe there is modeling/cash flow projections involved. Not going to say firm but large, its not specifically a RE firm, though.
What type of exit ops are there?
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I've seen people move on to better things/to pure real estate firms, but I don't think it's a slam dunk and it probably depends what product type you're referring to.
I realize that's a bullshit answer and I wish I could be more helpful but I felt like somebody needed to respond.
Can you narrow the position down for us? Is this facilities management, staff accounting, in house Asset Management, portfolio level or asset level in terms modeling.
Something to give people a better starting point for the career track.
I would say more in line of asset/capital management.
one thing that comes to mind is possibly moving to a sale-leaseback fund or if its a retailer that you are working for maybe a retail focused shop.
I have a friend who started as an analyst at a CB/JLL level firm in investment sales then went to an in house corporate RE position for a giant well known retail company with a few brands and thousands of locations worldwide because his wife got pregnant and they offered a more stable paycheck and better lifestyle then after getting pretty far up the ladder went back to CB/JLL as a national account manager (I have no idea if that's his job title but he runs a few of the large international accounts). Although I don't think he's making top broker or private equity money, he seems to be doing pretty well and his job isn't as sales focused because the brokers actually go out and hunt for the business and he comes along on sales calls to pitch their services and runs the accounts and people who work the accounts.
Is this at a big 4?
It is not.
My end game like I said is to start investing and start my own investment firm but I woukd like to be some sort of analyst at lets say a JLL, Cushmam, Milchap, or CBRe.
I assume I'd have to know Argus so since I won't be using it I was thinking just getting certified on my own time. Not sure how employees take regard in that as you're not actually using it in real life work. I'll see in future just happy right now with this opportunity! Was just curious
Argus is essential for large office deals with nightmare lease ups. I prefer excel for almost everything else. So unless you plan on buying large office buildings (i'm not doubting your ability) I wouldn't be too pressed about not have 'argus experience.' It's a computer program that a dolphin can learn. Learn fundamentals that will be essential to your investment firm strategy. Learn the business and find your butter. Surround yourself with the tasks and areas that will help you learn.
Every bit of the real estate business is just as important, even if it is not as sexy. Sure acquisitions is important because you need to model the opportunity and strategy to see if the economics are there, but you can teach any monkey to run an excel spreadsheet. You have no commercial repositioning opportunity if you can't lease up the property with new tenants. You cannot reposition the property if you do not have the competent property management team to facilitate the transition. Etc, etc etc.
Learn the business from A to Z if you are serious about starting your own firm.
good advice.
i'm actually more into residential RE. sounds weird, everyone is always into the sexy big time commercial properties but i would like to invest in residential multi family and even maybe be an analyst for a firm that specializes in that as well. money might be that great, but its something i enjoy as i did intern with a small developer in residential.
Large multifamily is sexy. Just my opinion. Demographic shifts favor mf for the next few decades. Run with it.
Corp RE works with management to determine strategies on how to rightsize and locate the firm near valuable resources (clients, talent pools, transportation hubs, etc.) Managing a large company's leases/properties is a huge task. A good Corp RE exec can save their company millions on RE costs, one of the largest on any company's income statement. They usually work with brokers to execute their strategies.
I've seen a lot of people move from brokerage into Corp RE and vice versa. Pay at the highest levels actually isn't that different. Corp RE execs at F100s can easily bring home north of $500k/yr.
Just depends where you want to be/where best your personality aligns. Brokerage is sales and Corp RE is more strategic planning oriented. Different strokes for different folks.
You usually don't see a lot of people moving from the Corp RE into development or investment. It's certainly possible with the right connections, it just isn't common. I'd argue it's more of a fit/personality thing than anything else.
coolhandlucas - Can you elaborate on what you see as the difference in fit/personality between Corp RE and Development / Investment? Would be very curious to know. Thanks so much in advance.
So much of fit/personality comes down to intangibles it's hard for me to describe in writing. And I want to be careful not to generalize too much because I mostly think people can do anything they want to do if they take the necessary steps and work hard.
Having said that, Corp RE folks tend to be very "siloed" and focus on deep rather than wide. Everything they deal with happens between the boundaries set by the organization. They are more risk averse than investors and developers. Task-oriented and cautious executors. General corporate population (can't think of a well-known reference, maybe a character on The Office?)
I'd say investors bridge the gap between Corp RE and developers. As you'd imagine they are very bright with numbers. On the whole, not as sales/people savvy as developers. Cerebral. Sam Zell, Buffett, etc.
Developers tend to be big picture people. They understand how many different processes relate to each other (financing, design, entitlements, operations, construction, etc.) and they have a knack for sales and managing people. They are very entrepreneurial in nature. Movers and shakers. Donald Trump.
Obviously there are exceptions to these. Neither is better than the other. Just different. All can be very successful.
Jumping from Corp RE to investment for another employers isn't all that common. But, like I said, it's totally possible. That being said, you're talking about starting to invest on your own. That's totally different. Anybody can do that if they have the cash, knowledge, and confidence.
In terms of learning investment on the Corp RE side, it depends on your firm's strategy. If you work for a firm that leases most of it's space you probably aren't going to learn much about investment. If your company owns it's real estate or develops and leases it back the answer is the opposite (not many companies do this. United Health Group is one major player who does.)
There's no doubt you'll gain valuable knowledge of real estate on the Corp side of the business, but lease administration is a totally different ball game when compared to buying/investing in RE.
I like to be a positive person though, so take advantage of your current position and learn as much as you can for a couple of years. Start building relationships with people on the investment/development side of the business right now. When you get bored of your current job capitalize on your relationships and try to make the switch.
Thanks man.
I actually think the corporation I'll be working for owns a lot.
I remember on interview the person saying their portfolio includes a lot of company owned buildings.
So from starting out it seems as if it's mostly managing the capital available for real estate related projects. (Budgets, expenses, capital all in all project costs etc)
Material sounds interesting. Different departments I can eventually move too like Asset Management. Not too in love with corporate America yet haha.
Bump
I mean maybe investment analyst is not realistic but there's other positions in a pure RE firm I'd be able to move to, no?
I've seen people move from facilities / corporate real estate into commercial brokerage focusing on occupier services. Leveraging your facilities network is great for business development.
Meh lol
Yeah, nothing that sexy. Still opportunity to make good money doing it though if you join the right team. Brokerage houses structure their teams differently. But I get your point, I was offered a position on the Salesforce account, but I turned it down b/c meh..
If your goal is mf (either residential or small scale commercial), why did you take a corporate/commercial RE vs. looking for an mf or residential focused job/company?
Did you only do it for the $?
I had one internship with a small investment RE firm. I was from a non target school with a bad GPA. I saw a good opportunity for exoerience and yes the money was good. It was an offer I couldn't resist. I'm not like many here with ib interviews and people recruiting me. If I didn't kill this interview and get offer I would probably be at some 35k insurance job. I even applied to internships and couldn't get.
If not an analyst in RE can you guys give me any other possible career jobs? I know this is RE forum but any other advice would be helpful.
What about positions at a JLL or CW?
If I'm reading this right, you're an asset manager for a large corporation. That's a pretty solid starting job. Your route to multifamily investment would probably look like this:
Corporate Asset Manager -> Multi-family investment firm asset manager -> Multi-family investment associate
You might need to get a MRED or MBA in there between steps two and three, or take a more roundabout way, but that's the general outlook. Get your experience, transfer to a similar role in a different company, and then try to transfer within the company to a different role or to a different company in a different role.
That is sort of my point. Your end goal is to own and manage houses/a multi family portfolio. So target places that will help you further that goal.
Commercial office brokerage isn't applicable. Neither is looking for a job at a bb nor a life insurance company.
You should be focusing on residential brokerage, apartment managers like Greystar or Camden or smaller residential investor shops.
There are some really interesting investors in the residential game. I know of a team that specializes in owner financing properties. And another that specializes in small balance residential loans (less than 75k) in rural areas. They both make millions a year and have no commercial experience.
The teams and shops are tiny, you are talking 3-5 people so networking is key. Also, you aren't going to find those jobs on LinkedIn and SelectLeaders. You are going to find them by talking to people at investment clubs and networking with residential buyers and brokers in your market.
Don't just make moves to make moves - make them with intent.
Is retail real estate any good?
Do people shop at malls?
Was this a rhetorical or actual question?
Of course...
I meant working with a places retail division lol
I know, but like everything, it depends. Plenty of billionaires in retail RE, just like there are plenty in Office, MF, or wherever. I focus mostly on retail, but I like malls(unfortunately my wife likes them more...). Depends on what you're into.
Just trying to get full grasp of options here..thanks guys
It is all interesting in its own way - spend some time actually working in the field and see what your opportunities are like/what you find interesting. I'm not in the place I thought I would be 10 years ago when I graduated from school, but I totally love what I'm doing.
Position at a JLL or CW sounds interesting.
Just wanted to see your guys thoughts. I think it's just like I said my end game is investing and starting my own portfolio, and I just wish I was in more investment to gain experience. I can I assune just learn enough on my own.
When you guys said brokerage did you mean on analyst side? Not that I'm looking to apply but saw a JLL senior analyst in brokerage and seemed interesting for down the road.
What is usually the unwritten rule for staying with a first job out of undergrad? I would want to stay at least year then try to switch teams because they do encourage it after 1-2 yrs but if I was unable too, I would maybe look to find something else.
Most people, when referring to commercial real estate brokerage, are referring to the people who lease, buy, and sell commercial real estate i.e. the brokers. That's how you make real money in that career path - commissions, not some analyst salary.
As far as your first job out of undergrad, I wouldn't leave before a year unless a great opportunity came up. It is far less important today to stick with a job for X amount of time just because "society" tells you to, but at the same time, you can quickly become a person who jumps from job to job every 8 months and that is a problem. A year is a good benchmark.
How hard are those to land? Is it straight commission based?
Leasing and investment sales roles are probably the least difficult in the industry to land, but most are straight commission and it takes a very specific type of personality to succeed. If you aren't a "born salesman" in one form or another you will burn out quickly.
I am not a good salesmen lol which is why i asked about analyst positions within brokerages.
Honestly, you may just not know yet whether you are or are not. Brokerage isn't chasing some soccer mom down in the mall trying to sell her sea salts from fucking Israel or whatever. You're putting a tenant who wants to be in the market in a location that is a viable business opportunity. Or helping them find bigger better office space. Or a bigger, warehouse. Whatever. The point is, it isn't Boiler Room. Really, the vast majority of my deals from the landlord side go something like this. Hi I'm from insert brokerage house and I have a center in insert location, I noticed that you don't have a store nearby, in the market, in a good location, whatever and I think our center really meets the demographics you're looking for, can I send you a flyer and if you have time later we can discuss it further? If I did the research before the call, which you have to do so you actually know what you're talking about, I normally get a solid response rate. Not everyone is looking to expand, sometimes you miss something in your digging, sometimes they just don't want to talk to you, or something they have a broker in the area and they give you their number and you work with them. Point is, it's really not hard, and you're not selling timeshares or some other bullshit that people don't want. Businesses that aren't growing are dying, so they want you to call them. If further inspiration is needed watch the Alec Baldwin scene from Glen Gary Glen Ross. Seriously, he was in the movie for 8 minutes and was nominated for an Oscar. It really is that good. Coffee is for closers.
I don't think I'm cut out for sales. I think more of an analyst but I'll see where the future takes me lol
Exit Ops From Commercial Real Estate (Originally Posted: 09/17/2013)
I've been working in the Asset Services department at CBRE for about 4 years now and am wondering what kind of exit ops await me if I choose to leave the firm. Asset services is not brokerage, this is a salary + bonus position that does not involve sales. Job duties basically involve financial reporting for clients/landlords, contract bidding, local marker analysis, writing case studies and general tenant/client relations. I am not the guy getting the clogged toilet call, most of my day is spent in a cube. Has anyone leveraged a position within a top tier real estate company into a consulting role. Do any consulting firms have real estate specific groups that would be prefer someone with a more hands on background as opposed to a more quant/banker background. Just throwing it out there as I have great interest in real estate but not sure if I want to be a CBRE lifer but am fearful that I may be pidgeon holed into that.
What do you want to do? If you want to move to the equity side, you'll need underwriting, argus and modeling experience. While CBRE may be a good firm, you don't have the essential requirements to transition.
If RE interests you, try moving to the brokerage side.
You could potentially swing to the Asset Management side of an REPE firm? There can be some money in that and hours are okay...
RE Exit Ops (Originally Posted: 07/30/2013)
Let me give you guys some background. Out of college I worked at a MM firm trading commodities (1 year) then switched over to a small fund trading. Fund took a hit, I got laid off (worked there for 1 year). Then I went to a family friends commercial construction business as a project manager (6 months). Did great there and when hurricane sandy hit, I went to go work for another family friends residential construction business rehabbing homes from Hurricane sandy damage on Long Island as a project manager (3 months and made some great $). Now I work at a bulge bracket bank on the origination side lending money on multi family portfolios. Its a great gig, learning a good amount about how to analyze properties and what lenders look at. In between all of that time I purchased (1) multi family property in Queens and have flipped several single family homes.
My question is this: How my exit ops looking and where can I go from here? I would love to work for a developer or for a small fund that specializes in re positioning multi family portfolios. The bulge bracket gig right now is paying great and I'm learning alot, but I would love to see what else is out there and to be quite frank, I want to work for myself one day.
I think that's a good narrative for a small fund - it depends on if you want to stay with MF. You probably couldn't pitch that to a larger player who works with the full spectrum of properties
The best exit opp for real estate is to own your own real estate. This is not like banking, where the end goal is to hit PE and to continually work for a firm until you hit partner. If you become experienced in real estate, why not use your skills and knowledge to build out a portfolio. Real estate is a very entrepreneurial business and can be very rewarding. Like you said, your goal is to be your own boss one day, why not just push for that. You already have one multifamily, why not expand on that?
@TeddyTheBear I will be acquiring a small portfolio of properties as years go by, but I would like to be buying some MF properties on behalf of clients. Going to need a solid income stream to finance a growing portfolio lol.
Anyone know of some good places to target i.e firms and different MF shops?
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