RE Asset Management vs. Acquisitions

CRE12345's picture
Rank: Orangutan | 286

I've seen a few discussions on this topic already, but most are outdated. I'm curious in Real Estate, whether commercial or a large multi-family owner (EQ, GID, etc), which typically pays more between asset management and acquisitions, starting from the analyst going all the way to an EVP etc.

I've seen a few reports published by Rhodes Associates and CEL discussing this topic, and they are very different based off the numbers. But both are showing that the compensation between AM and ACQ are fairly similar, if not higher for AM.

Curious to hear some of your thoughts on this topic and to hear about any insight. Below are the studies that I am referencing....(Won't let me post links since im new to the forum, but if you search these in google you will find both PDFs easily)

Rhodes Associates 2016 Compensation Study

CEL AssociatesInc NationalRE Compensation Survey Results

Comments (7)

Mar 8, 2019

Here is Link to 2017 study

A bit odd to see senior AM folk making more than acquisitions. I don't buy it. That is my gut feeling. Strictly empirical.

Mar 8, 2019

Agreed. I do feel that CELs #s are pretty low. Most of the guys that I know that are in those top positions are making a lot more than that, but I guess this is a nation wide study.

Mar 8, 2019

Well actually I see now that those numbers are strictly salary, with the bonus expectations on the side

Mar 9, 2019

agreed. salary wise I buy high office AM > acquisitions. but remember for development/acq you have deal carry, production bonus, etc... AM is typically straight salary. Always wondered if/why some shops don't offer incentive fees or management fee sharing ... the same way that developers are compensated more if it is a successfully returning deal.

Mar 11, 2019

Interesting, how about for Multifamily? Say a firm that has over $5B AUM, and primarily goes the route of buying Class B (Rather than brand new Class A easy to manage product) and having AM handle all renovations and upgrades as well as dispositions. Can't get a read on what the end game total comp would be....

Mar 11, 2019

You know the median pay of large REIT are public info, which is around ~200k from what I've seen

Mar 11, 2019