Currently I have a couple of offers to join two of the Big 4 firms. However, one offer is in Retail brokerage and the other is in Office brokerage. I've heard that Office leasing can be very top heavy and very tough for a younger broker to break through. However, I have also heard that Office leasing is where the money is. Can anyone give me advice as to which might present the better opportunity in the short-term? Long term?
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What market are you in?
Are both for leasing? I would choose office as you will probably learn the most. Retail can be niche and office concepts apply to all asset classes. Additionally, the general sentiment for entry-level jobs is you should choose where you will learn the most not where the money is.
If you can, compare the teams' culture and deal flow. Pay will be the same across junior levels and you have a 95% chance of not ending up at a senior level position in the asset class you start out in.
I'm in Chicago and both jobs would be working in leasing.
Additionally, my understanding in brokerage, as far as I have been told, is that it is hard to change one's speciality once they have begun to gain contacts and create a book of business. I have nothing against starting in either one of them, however I rather not get locked in early on without a better understanding of long-term compensation possiblities
This is true once you start brokering your own deals. Someone correct me if I'm wrong here (never worked in leasing brokerage) but won't he be doing the first 2 - 3 years as an "analyst" type that is crunching numbers and not building business? If this is the case, I defer to my previous comments about which team you like the most and which team you feel you will learn the most with.
If what you're saying is the case then I apologize for poor advice.
Yes. You'll typically spend 2-3 years in a support role. This role can vary from analyst to transaction manager (you are navigating much of the deal yourself, while senior brokers manage the relationship/sell). During this time you also get your license (if you don't already have it) and work on building relationships. However, if you bring in a new deal the chances are your senior partners will take the lion's share of the revenue. You'll make a modest base plus a percentage of the overall deal flow that your team sees. Also, remember deal cycle is long and that it's likely to take six months (at min) before you see a commission check. Team is everything in this business (especially starting out), so you need to make sure you fit well with the people you could be working with and that that team is doing deals.
Office brokerage in Chicago is a good seat to be in. And so is industrial, as greater Chicago is seen as a distribution hub for the Midwest and has many large distribution centers and warehouses. Not sure about retail but I'd assume it's fairly healthy especially in the downtown/tourist areas. The fees paid PSF on all of these vary, but you can make nearly the same across the board if you're among the top producers. The top 10% in this business are the ones making 90% of the money.
If i had to choose between office and retail, I'd choose office. But I'm biased because it's what I do and because I'd rather be working with office users/investors rather than retail users/investors.
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