Hey guys,
I'm currently working in RE lending as a credit analyst and would like to eventually move into development. Construction loans have always been my favorite and I think it would be a rewarding career - I like the upside possibility and entrepreneurial nature.
One thing I like about my banking job though is the deal flow and asset variety that comes across my desk. A lot of big the developers in my city (Denver) focus on one asset class and I don't think I'm ready/want to specialize in one asset class quite yet. All the talk of getting "pigeon-holed" in these forums kind of scares me.
I was poking around JLLs website the other day and saw they offer "Project and Development Services." From what I've gathered, they handle development for non-re companies looking for build-to-suit spaces and public works, not for investment purposes. Colliers had a similar link on their page and CBRE's link took me to the Trammel Crow website.
Has or does anyone work for these groups? Would they be a good place to learn the fundamentals of development? I realize the upside wouldn't be there like with a developer doing it for investment purposes, but I imagine these global companies have it down to a science and I wouldn't mind learning from the best for 5-10 years before going out on my own or working for a small shop.
I searched the forums for any info on these groups but all the discussion around JLL and colliers seems to be regarding brokerage and advisory services. Any info would be greatly appreciated.
I have worked with them before and you are much better suited working for an actual developer if you want to learn the development business. On the deals I've seen them, they police the developer (on behalf of their tenant client) and create a lot of unnecessary busy work to justify their fee. However, you would get a good amount of experience going through deal due diligence to see if a development site is suitable for your clients. I would also imagine the deal flow is more consistent than at a development shop, where you may focused on riding out 2-3 projects over a much longer horizon.
Long story short: if you want to learn development, work for a developer. No better way.
Oh so they don't lead the developments themselves?
As you indicated above, they offer "Project and Development Services", which is basically a consultant service. Back in the day before I worked at a development shop, I worked for a commercial GC. We had a contract to build a manufacturing facility for an $8bn/year private food company who only bought and built buildings to own for the long term. They never leased, that was their model (imagine 12 really old guys smoking cigars at a big round table arguing over what color the building should be...literally). This big private company hired JLL to run the show. He billed them on an hourly basis to help find a land site, get it designed and approved, then to find a GC to build it. He managed the initial design development budget, final construction budget, issues with the City, change orders, etc. He made all decisions except sign anything. He had no legal responsibility and any real change order he would fight tooth and nail because if it was something he didn't include in his original budget, he had to go explain it to the old guys why they needed to pay us more money for a change. The guy was probably 30 years old and had a VP title, and I know had about 6-7 years of project management experience at another large GC. Anyway, yeah they are more like consultants and that was my personal experience. I have no clue what other financial incentives they may have negotiated, e.g. split savings or development fees. You would have to really draw the line between a straight up consultant and someone that adds value to justify a huge development fee on some of these deals.
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