Comments (26)

  • Analyst 1 in RE - Comm
Jan 6, 2022 - 7:10pm

Heard around 90k base for development analyst at one of these shops. Assume analyst (and probably associate) bonus would be in line with what's mentioned above - 30%. It is frustrating but I'm doubling down and putting in the time and effort that I need to in order to get good at development and reach the point where the big bucks are. Seems to be a lean vertical of real estate that is difficult to get into and has a steep learning curve. It appears that you need to overcome these factors to hit the real payouts.

  • Associate 1 in PE - Other
Jan 6, 2022 - 7:13pm

Does working at Related or Brookfield really give you the skill set to go on your own though (more than other shops that might pay you more)?

I've interviewed for these analyst positions and it sounds like from the development side your mostly staffed on one deal (Hudson Yards, etc.) or building and have a very narrow focus on a megadevelopment. Which to me...isn't really transferable to doing your own deals because it's not like you're going to build a massive skyscraper for your first deal. At least this has been my impression. I'd rather work at a smaller developer or less of a brand name shop where I can get paid a bit more / have a more cradle to grave approach on deals that I could feasibly do on my own one day. 

  • Analyst 1 in RE - Comm
Jan 6, 2022 - 7:32pm

I agree fully and side with you. On the other hand, I've also come to realize not everyone wants to (or has the ability to) successfully open their own development shop. Furthermore, for some people, such as former architects, the design component of working on such large mixed use projects really gets them going and is what they may be passionate about. Bottom line, everyone has different priorities and some may enjoy these larger projects for their social and neighborhood impact, intricate design, or even the ability to work with the top lawyers and consultants around the world. To answer OP's question a bit indirectly, if you like development and see yourself succeeding in it, your gonna have to bite the bullet on entry level salary (compared to acquisition folks at shops of similar reputation).

Most Helpful
Jan 6, 2022 - 8:44pm

I have friends (VP level) who work at these top development shops and this is the BS they feed to get labor on the cheap. It's the same BS they got fed when they took these development jobs 5-10 years ago.

Most of you here will never hit the "start your own shop" and get a "life changing" carry. Real estate is very much an old boys network at the higher levels (at least on the development side). "Doing your own thing" can only happen if your family is rich and is willing to bank roll you. The day of developers starting from 0 to Hines/Related/Tishman/Irvine company are over. Those guys made their money when this industry was in its infancy. Land was cheap. The founders of Hines/Related/Tishman/Irvine couldn't make their fortune in real estate today, they would be forced to do something in its infancy like crypto (ala Vitalik Buterin (etherum), Sam Bankman-Fried (ftx)).

The rest of you, myself included, will pull in a respectable W2. 

  • Analyst 1 in RE - Comm
Jan 6, 2022 - 9:10pm

Agree with what you are saying, but I think many development folks on here who reference "doing their own thing" aren't trying to be the next Hines or Tishman. Rather, I think these people are trying to do much smaller deals, usually in the $25-50 million dollar range in terms of total capitalization (IF NOT SMALLER). People who want to do their own thing are probably looking at the lower middle market. They're not trying to develop One Vanderbilt. as such, places like Tishman are not the best of places to work if you want to venture on your own. But, working at a smaller developer that does projects that are simpler in literally every sense allows for one to build a skill set that is both more relevant and transferable. It was NEVER easy to do your own thing. Despite the lack of institutionalization 25 years ago, building Hines up to where it is today is still an unprecedented achievement. If you want to "do your own thing", examine where the market is and how things have shifted and work accordingly. Maybe building the next Hines is no longer feasible. BUT developing 5-20 unit buildings and maybe scaling up to 50 unit developments is MORE LIKELY. As an example, look at the self storage development industry. many players in this space who seem to have done quite well are small shops you have never heard and no, they did not work at Hines. go where the markets are less efficient. have a clear vision and be realistic in your aspirations and you should do well. In other words, maybe don't go to those "top development shops" as it seems to be evident that may not be the best route. Don't let "top developer" or other prestige related bs cloud your vision and path.

  • Analyst 2 in RE - Res
Jan 12, 2022 - 11:00pm

Why is that not possible??

I genuinely believe, all else equal, if you work 7-10 years and open your own firm with 4 to 5 founding members, each contributing $200k, you will have $1 mil GP capital to start with.

Then the first strategy should be to start out with acquisitions of stabilized properties to build cash flow, net worth, balance sheet, and scale the portfolio prior to expanding to development.

Jan 6, 2022 - 8:08pm

Yeah pay is doodoo and remember nobody outside of real estate knows prestige. Most peoples eyes glaze over when you say real estate. They're like oh this guy sells condos lol. So you really gotta love the role you do.

These roles won't help you go out on your own since they are mega projects, but some people like that vs cradle to grave. To each their own. Just be honest with yourself if you like a 8-12 year project vs 2-3 years for development.

  • Analyst 1 in RE - Comm
Jan 7, 2022 - 11:13am

I know they have ventured into industrial recently, but they're really just known for multifamily. Some people, like myself, want to get experience across all the asset classes. 

Jan 7, 2022 - 10:57am

I'll add a slight counterpoint here. While a 20-50 unit project might be very different from a mega development; working at one of the huge huge huge development firms could assist in raising capital for the small deal down the road. People like to see a name brand. It's might not matter, but it could**** help. I know a few founders of firms who have told me point blank that without their mega firm name on their resume, raising capital would have been much more difficult. 

Jan 7, 2022 - 3:19pm

The first deal you do on your own at the "20-50" unit project level will be funded at the friends and family level. No serious money is chasing 20 unit apartment development deals in bum fuck nowhere. Having a brand name on the small deal only matters if your friends and family care about it. But then again, most friends and family don't know what a mega developer is. 

Jan 7, 2022 - 4:15pm

Eh, more often than not when you break off on your own it's funded by country club money or via a fortuitous relationship (e.g. the principals you used to work for, relationship at a family office, colleague at a fund, extended family money). You're rarely targeting a seed fund and putting out a book, and in the event that you are, your track record in your niche is going to more important than being VP at some name brand or whatever.

  • Prospect in IB-M&A
Jan 12, 2022 - 8:22pm

Brookfield must pay more thank $160 all-in for associates in real estate investments? Development might be another story, but they're number two in largest PERE 100. Anyone else have other figures for their re pe group (also source if you're comfortable dropping it)?

  • VP in RE - Comm
Jan 12, 2022 - 11:41pm

Distinctio quae aut autem necessitatibus ea quasi rerum. Id laborum ad dolores. Voluptatem nemo illo porro ratione qui vel. Accusamus omnis possimus omnis error autem laboriosam. Vel iure nesciunt tempore.

Start Discussion

Total Avg Compensation

January 2022 Investment Banking

  • Director/MD (5) $604
  • Vice President (22) $385
  • Associates (148) $241
  • 2nd Year Analyst (85) $153
  • 3rd+ Year Analyst (15) $150
  • 1st Year Analyst (296) $142
  • Intern/Summer Associate (64) $142
  • Intern/Summer Analyst (225) $90