Currently in various recruiting processes with small to medium-sized developers/owner-operators across the country for a junior (3-5 years exp) role. None of these are "brand name" (in the sense of Related/Tishman/Hines etc), but seem to be respected in the markets they're in. In the rounds I've had thus far, the rapport with the team members have been comparable, and the comp figures are also comparable. The strategies employed by these different firms are also all comparably attractive. Thus, I'm having a hard time assessing the employment prospects for each.
If you were in my shoes, what information would be important to you? Asset value of portfolio? # sf managed? Historical returns? Capital partner relationships? How active they've been recently? Future prospects of the markets they operate in?
I guess what I'm trying to solve for above all else is some level of optionality down the line. And I'm not sure how a future RE recruiter/employer would assess a non-brand name developer on my resume. Any insights would be appreciated.
I would be focused on fit. None of the above matters for your learning. If one firm owns 1 MM SF and the other owns 5 MM, it doesn’t make one better. You than need to understand strategy, returns, etc. But really, what will make your life better is fit. How well do you fit with the firm culture. Focus on that because it’s fit and culture that will allow you to succeed and get ahead at each firm. If you don’t fit in the culture, you’ll want to find a new job quickly. Also in line with fit is what do you want to do long term. If 2 of the roles are asset management and 1 is acquisitions, and you want to do acquisitions, well than go with the firm that does acquisitions.
To sum it up, aim for fit, but consider what you want to do too. In Real estate you can jump from big to little and little to big.
So this point of advice presumes you have some legit network in the market(s) where these small/medium firms operate (if not, do your best??).
I would be calling/speaking with the people in my network who I trust and can speak to on that personal-confidential level, get their view on these firms. People who will tell you the good and bad honestly. Generally, not many secrets held for long this industry, if there are "red flags" of caution, others will know. If you are a bit brave, reach out to "former" people who have worked for the firm. This is just due diligence, as is reasonable.
To be fair, a lot of subjectivity in assessing the condition and job prospects of private firms, esp. small/medium ones. So end of day, gotta trust you gut. pudding makes really good points on that front.
Thanks. If no one in my network is familiar with these firms (and/or they're new to the point of not really having any former employees), anything else you would be able to recommend?
I don’t know how well this could work but maybe reach out to other people in the market they’re in that may have done a deal with them or worked with them in some other capacity and may have some good info you can use to asses them.
Well, given I can't really assess your network, I am not sure if that is informative or not. Meaning, the fact they are truly unknown (and new firms often are), is a degree of information. I wouldn't say it is bad necessarily, but might be a risk factor.
If they do not know the firms, how about the principals/key employees? They had to work somewhere beforehand right? Maybe talk to prior co-workers (be careful on that one, tbh).
This x100. I've called former employees in all companies I've ever worked as part of my diligence and you'd be surprised how willing they are to share their experiences. I have also gotten those requests and always take those calls as well because I know how helpful they are.
Fit, pipeline, and track record of the partners are the most important factors I would consider.
This x100. I've called former employees in all companies I've ever worked as part of my diligence and you'd be surprised how willing they are to share their experiences. I have also gotten those requests and always take those calls as well because I know how helpful they are.
Fit, pipeline, and track record of the partners are the most important factors I would consider.
Would agree that the smaller the firm there’s a greater emphasis on fit and reputation. I’d also tend to agree that AUM doesn’t really matter but deal flow does, especially for a junior role. I’d be more focused on their pipeline and what they’ve gotten done recently (acquisitions) and or their typical business plan and quality of their existing assets (asset management). At the end of the day you want as many reps as possible at the junior level and whichever shop can give you that is usually the best option.
What type of markets/ asset classes do these firms operate in? I’m curious at the comp they’re offering. It could be a good data point to add to the latest CRE Comp Sheet that’s been circulating
Good point, thanks. These are largely for growth markets: Houston, Denver, Boca, etc. Will populate the spreadsheet after I get more concrete comp figures.
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