What's the hottest/most lucrative property type to be getting into right now?
Is it hospitality? That seems where higher margins are. I know everyone and their mom is in multifamily but the lower cap rates make me think that entails lower comps.
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I don’t have an answer for this, because i don’t think there is one. But you do realize, trading at lower cap rates mean higher values right?
It also means lower returns which you can assume leads to lower comps for people in acquisitions.
That’s not necessarily true at all.
If I’m underwriting a core deal in a CBD to a 12, generally my waterfall hurdles are much lower than if I’m underwriting spec office in suburban BFE to a 25. My AM fees, Acq/Dev fees, PM fees, CM fees are going to generally be higher by virtue of deal size.
Honestly, if you’re looking for something lucrative go work for a master developer who has super low head count and does massive deals across all of the major property types. Work your ass off and get a piece of the pie 6-10 years down the road, and you’ll be sitting pretty. However I’ll warn you everyone under 40 on this forum is looking for that exact opportunity so rather than worrying about your comp, find something you like to do and do really well at it.
If by "most lucrative" you mean the potential for most profit, then it would still be spec retail or office development.
If you are looking for best risk adjusted return, i would say core-plus multifamily, that's why there is so much interest in the space.
The hottest property types will by virtue be some of the least lucrative.
I should clarify, I mean hottest/ best paying property type to be in as an acquisitions guy.
Sorry, English isn't my first language
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