Just curious, to all the commercial real estate brokers out there--how much money are you earning a year.
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**** Honestly this is a lot of work to fill out, it varies a lot from year to year.
EDIT: Alright I've had my coffee, I'll help.
Market: Large West Coast City. (Seattle, Portland, SF, LA, San Diego, Phoenix, Denver, Las Vegas) Product Types: Retail, Office, Industrial Role: Sales and Leasing Splits: Depends a lot on the deal, not usually that great Team: Just me lol Pay first 12 months: $28k? Pay second 12 Months: Maybe like $70k Pay third 12 months: in progress Years in Business: 2
This is from 2012-2013 back when I was in the used car business.
This is reality for 90% of starting brokers.
from ~2012-3
Product: Office Leasing Major East Coast Market Commission after splits: $150K (year 1: 50K; year 2: 90-100K; year 3: 150K; year 4 projected (left firm to principal side): 250K) Company split: 50% team split: varied by deal, typically around 15-20% Years in brokerage: 3
Ricky - If you were going to make $250K why did you make the move to the principal side? I'm assuming you took quite a significant haircut in compensation doing so.
Definitely took a haircut on total compensation and lifestyle. There were a few reasons why:
I'm curious about your time as a CRE broker analyst/acquisitions analyst. Did that experience help you jump start your broker career? What kind of salary did you make in that role, and did you enjoy it? Thanks!
No income to report, but I thought this was funny and made sense. Somebody told me this the other day...."there are no struggling brokers in the business who have been in the industry for more than 5 years. If your in the industry for longer than five years and have not yet quit, then your decent at it and are making decent income. Most brokers quit within 5 years and find something else to do that is worthy of their time"
Not sure if there is another bigger thread for this but bump for more info on this
Would like to get this thread revamped or if any of the original contributors are still in brokerage and wouldn't mind providing an update. Sounded like several were in year 2 or 3 back in 2017. I wish I had info to offer, but like many of you brokerage is something I'm considering a change to, and the 'eat what you kill' & high ceiling are a big draw for me.
Would also love to PM anyone willing to share any information regarding brokerage.
Asked my older brother and he gave me the following. He works at one of the bigger IS/D/E brokerages or REIBs. He says he didn't start primarily as an originator, but for the deals he does originate, he's pretty happy with.
Product Type - Hospitality, Office, Retail
Investment Sales or Leasing - D/E Placement, Investment Sales
Geography (City, State or Region) - Nationwide, but works out of West Coast office
Commission after company and team splits - 200k base + % commission on deals originated ($100-300k)
Company split % - 50%/50%
Team split % - 80%/15%/5% (15 & 5 to the AVP and associate on the deal, respectively)
Number of years in the business - 15
Who exactly do D/E brokers sell to? Most of my researching/reading to this point has been on CRE brokerage (leasing/IS), not necessarily D/E placement- which is essentially lending? Forgive me if I have misunderstood completely.
Good D/E brokers have relationships that I don't have. We usually go to the same people for equity, but for debt we make a packet and our rockstar debt broker goes to NYC and comes back with a ton of options. His ability to pick up the phone and call decision makers directly makes him worth whatever we pay him.
Debt brokers arrange debt financing for borrowers. Equity brokers arrange equity financing for a fund or specific deal.
They provide value to their client by getting them the best terms possible. It can really vary the extent to which the broker is involved in the deal.
I'm a lender and we've had some deals where we communicated with the broker maybe 40% and the borrower 60% of the time, and others where we spoke to the broker 90% of the time and the client 10% of the time.
The D/E broker gets paid for their services by their client who is the borrower or firm raising equity. They are their client's agent and are paid to provide them the best terms possible.
Product Type Retail/Office/Industrial
Investment Sales or Leasing Both
Geography (City, State or Region) Southeast Tertiary Market
Commission after company and team splits Last 6 Months of 2016 - $3,000; 2017 -$49,000 (Got picked up by a team); 2018- $75,000; 2019- $80,000 thru August should close 2019 with close to $200K
Company split % 35% to company and gradually decrease once you hit $115k
Team split % 25%. 50% when I bring in the deal. Number of years in the business: 5 years with 3 as a full-time broker
Brokerage comp is still so strange, yet so exciting (knowing the potential, and understanding there are far more brokers that flop): 1. $25k 2. $31k 3. $100k 4. $189k etc... When you say you ' got picked up by a team', what exactly do you mean by that? I was under the impression that most brokers starting out will join a team as either an analyst, or junior broker with unfavorable splits until you prove you can grow the pie. How many deals did you close to put you on target for $200k?
Also interested in what you mean by being picked up by a team.
I interviewed with a firm in Boston recently and it was very team-centric. As in the first chat was with the associate and then the MD etc. Must be super wack to join a firm and not have a team or leadership. How’d that work?
Would be curious as to how this looks for other brokers. From a buddy based in NYC (outer boroughs) who does middle market IS (mostly multifamily, but some retail and development sights). Average experience of his team is around 5 years.
Total Volume 30,000,000
Total Number of Deals Done 16
Average Deal Size 1,875,000
Total Fees 1,800,000.00
Split 50/50
Total After Split 900,000.00
Team Split 4 person team each getting 25%
Income 225,000.00
Wow, 5 years experience and raking in a quarter million. Pretty impressive.
No kidding. I wonder what the first 4 on average looked like....Thanks for sharing!
Product Type: Office/Industiral/MOBInvestment Sales or Leasing: IS and Tenant RepGeography (City, State or Region): Midwest Major MarketComp: 1st year $50k base w/ $1,500 spot bonus per deal ($55-$60k total); 2nd Year $55k base with 1% of gross commissions ($65-$70k); 3rd Year $60k base w/ 2%-5% of gross commissions ($85-$100k)Company split: Base Salary with spot bonus paid upon closing of each deal (1%-5%); 20% if I originate the dealNumber of years in the business: 3I recently took a new job on the ownership side working as an Acquisitions/Asset Management Analyst making $90k base with 25% bonus.
Which brokerage?
A boutique brokerage shop hence the unique comp structure and ability to focus on both IS/ Tenant rep and on multiple asset classes. We ran a lean team of less than 5 people total in the firm.
When I got to New York, I had no place to sleep. The pay from 'Sesame Street' wasn't enough to rent an apartment. I was staying on people's couches. I stayed in the dressing room until they found out. I stayed with Jim Henson and his family for a week, and I wanted to do that permanently. I didn't dare ask, though.
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