REIT Compensation at the Analyst level?

illini29's picture
Rank: Baboon | banana points 132

What would be a good estimate for compensation for an analyst at a major metro REIT?

Specifically on the acquisitions/development side of things.

a) are bonuses a thing?

b) what can be expected in a base salary?

c) if it is on the low end of the range, should I counter - will I be successful in doing so?

Here's the problem, I received an offer from a smaller firm for $79k + ~15% bonus is this high, or about right?

I like the potential firm a lot better, but I am seeing that the range is 53-81k with only 9 respondents and it was last updated nearly 3 years ago.

Is it likely there will be wiggle room in the offer if it is closer to the 53k?

Top 5 city

Comments (42)

Jun 27, 2018

a) Bonuses are typical.

b) Are you coming directly from undergrad? Or do you have a few years of experience?

c) If near the low end, and considering it is in a top 5 major metro I believe you should counter. But again, the number would be dependent on my question above.

Jun 27, 2018

Direct from UG, how much should I expect?

At what offer would it be disrespectful to ask for more?

Jun 27, 2018

If we're talking purely entry level:

Base I would expect 55-75k, depending on the firm and the metro. Of course there are outliers on either end of that range.

Bonuses are absolutely a thing, 10-15% is reasonable.

You can absolutely counter, 5-10k to them may be nothing if they like you. Asking for a signing/relocation bonus is another option here.

79k + 15% is quite a solid package (if we're talking entry level), and my initial reaction is that a smaller firm, especially one that is paying that well, is going to be much more interesting work than being at a REIT.

    • 2
Jun 27, 2018

Yeah I want to wait and see what they say. I am expecting it tomorrow. The role technically requires 2-4 years of experience. Linkedin profiles suggest this is mostly accurate.

What I am worried about is if the current employees who have 2-4 years experience are in the middle of the range say $60k, they may not want to compensate me the same?

Jun 27, 2018

79k+15% I'd take that in a heartbeat at entry level

Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Jun 27, 2018

The comp isn't everything. Perhaps a REIT will offer the same or more?

Jun 27, 2018

No idea but from what I've read on here 79k+bonus is pretty high for entry level comp so I wouldn't be surprised if the other firm offers less.

Jun 27, 2018

The comp isn't everything but typically you see more and get more experience/knowledge at a smaller shop. If they are paying you more to boot, then that to me is the better offer to take. Bigger REIT's have very rigid structures for comp and career progression, and because of the investment profile they typically deal with, there's a possibility you don't get carry/participation until the very late stages of the game, if at all. IMHO you're better served cutting your teeth at the small shop in the early/junior career stages, then banking some dough and lateraling into one of the bigger shops at the VP+ level rather than fighting through the ranks to get promoted internally.

    • 1
Jun 27, 2018

Is going from a REIT to REPE a viable path after a few years?

Most Helpful
Jun 27, 2018

It's doable but again, in my opinion/experience this is sort of backwards (but others may disagree). The real compensation at the REIT level comes when you get a fee % for acquisitions that you execute while the senior deal person in a market. In very rare cases you can get carry/participation, but I know for a lot of the larger REIT's they don't get this unless they are one of the top-top/near-c-level types, and the acquisition fee is the real juicy component of the comp. In my opinion this is better than the carry at a normal REPE shop just because you get paid as the deal is done and it's not dependent on performance down the road. You have the potential at late stage REPE positions to make a ton of money on the carry/promote/participation, but in a lot of cases you have to wait on the performance of the deal and you're subject to things outside of your control that dictate your comp. This is true for any job, but I think it's exacerbated by the differences in structure I just outlined on the REPE side.

So TL;DR version, cut your teeth at a lean private shop/operator/REPE fund as a large contributor on a small team, get good experience there, then move to a REIT as a senior person and reap the rewards rather than try to get promoted within REIT while competing with 20+ other analysts in the same region.

    • 4
Jun 27, 2018

The offer you got is very high. I'd say 75-85K all in is where the majority of REIT analyst roles will start, if you're in a major metro.

a) Bonuses are a thing, though in REITs the bonuses are generally below 20% at the analyst level. The real money with REITs comes in the form of stock options, which you might get a bit of at an Associate level and a whole lot of as a VP.

b) Base salary for a solid REIT in a big city is probably 70-80K

c) entry-level positions are pretty hard to negotiate, as most people are on a set salary progression course for their analyst years. If a REIT in a major city tries to hire you for 50K, walk away and take the other offer. If you're getting great experience from the smaller firm, I wouldn't worry that much about "brand name" or enterprise value. Something tells me that if it's truly a reputable and recognizable firm, they'll be paying you closer to market. SL Green and ProLogis aren't paying analysts 50K

    • 1
Jun 27, 2018

What about if they came in the 60k range? Is it inappropriate to counter? If the REIT gave me $75k base. I would sign immediately.

Jun 27, 2018

You have nothing to lose if you counter, being that you have a stellar fall-back option.

Why is it that you want to join this potential firm so much? Are they that much more well-known? I don't think that brand name matters that much in the world of REITs and even REPE. Maybe if you're talking about an SL Green, Vornado, Prologis type firm and your ambition is to work for a MF one day, then it probably matters a little bit. But it isn't like IB where joining a BB as opposed to a MM firm is going to drastically affect your exit opps.

    • 1
    • 1
Jun 27, 2018

Test the waters appropriately. Use this method as a template

Learn More

Side-by-side comparison of top modeling training courses + exclusive discount through WSO here.

Jun 27, 2018

PM me, I can give you some info

Jun 27, 2018

Mind PM me? Used my limit today.