Is real estate seeing the same brain drain as some of the other industries?

I wanted to see how other shops are doing in terms of attracting talent/not losing talent.

Tech (non-SWE roles) and consulting seem to be very hot among my buddies right now given the attractive work life balance and flexible WFH situation. Finance isn't doing too hot and has struggled to retain old talent and attract new talent. I see tons of IB associate openings popping up all over the place with very few applications and we all saw the pay increases that hit the headlines a few months ago. What are you guys seeing within real estate? Trouble attracting and retaining talent? Pay increases?

 

My neighbors, husband and wife, are both in IT. Combined they are pulling in probably $500k. Drive very nice cars (with no debt on them), have almost no debt as they paid down their mortgage in a few years. Have a huge amount of money set aside for both of their kids college funds. They seem to always be happy and spending plenty of time with the family. They are only 36 years old. Granted it helps when you live in a MCOL area as opposed to SF/NYC.

 

Yes, I know a dozen or so people who are waiting for their bonus to hit prior to jumping ship. It's mostly driven by lifestyle where it's either better work-life-balance or better hybrid work (2 days in office versus 4+ days in office), with little, if any reduction to compensation. Anecdotally, one friend who is leaving a top 50 firm, is seeing his compensation 1.5x plus increase huge increase in perks/benefits. If you're talented, I imagine this trend will persist. 

Robert Clayton Dean: What is happening? Brill: I blew up the building. Robert Clayton Dean: Why? Brill: Because you made a phone call.
 

Definitely agree with RE becoming mainstream and institutionalized, but IB is as mainstream and institutional as you can get and they're bleeding talent rather than attracting it. Seems like people are really into entrepreneurial, flat, flexible, etc. environments these days, which real estate is basically the opposite of as a "boomer" industry. 

Have people been leaving your shop? Do you guys have positions you're finding hard to fill? 

 
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I decided to go into Real Estate as I saw a lot of people older than myself make tones of money, with the hopes that I could one day go out and do deals on my own (yes I know, quite original...)

With cap rates so low and decreasing in leverage levels provided by lenders relative to pre-2008 lending, I am finding it extremely unlikely that I'll ever be able to go out on my own. Most people I know bootstrapped themselves and borrowed friends & family money to start off. But even with friends & family money now, how do you even get the 35% equity to do a $5M deal, which is considered extremely small in today's values. Plus, the CoC isn't even there to fuel further growth if you manage to do the first deal.

Anyone else feel the same way?

 

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