Why are Goldman Sachs Dallas Real Estate Salaries so low? (Merchant Banking Division)

I know recently Goldman has fused together alot of their divisions to form a direct investing arm of $140B. I heard it's all under "Merchant Banking". A Lot of the real estate asset management is happening out of Dallas under the Merchant Banking group.

From what I've heard from people in the group the salaries are terrible. Like worse than corporate finance salaries at random corps.

WSO data seems to back that: https://www.wallstreetoasis.com/company/goldman-s…

GS Real Estate base salaries in Dallas are around: $60,000 - $68,000 w/ low bonuses

Is there any validity to this? Are salaries low because of Dallas being a low COL area?

What do exit opps look like if you do Real Estate Asset Management for GS?

 
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I don’t think it’s crazy low... 70k + bonus straight out of college, living in a low COL city with no state income tax, working for a brand name company like Goldman, hours likely aren’t as intense as the NYC team doing acquisitions (those salaries are for the asset management group Correct?).

Also people on this forum seem to think Goldman is this god tier firm that showers their analysts with money... they’re just a regular company that houses their asset management team in Dallas to keep costs low. They’re not gonna keep costs low if they pay their 1st year RE analysts in Dallas as much as their NYC IB team

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I would second this. For example, other bulge bracket banks have oil and gas teams in Houston and their comp structure is usually the same as NYC if it's within the investment banking division - at least that was the case at the bank I worked at. Making $60k base when other analysts are starting at $85-90k suggests the roles are not uniformly front office / revenue generating for Dallas RE.

 
Analyst 1 in CorpDev:
I know recently Goldman has fused together alot of their divisions to form a direct investing arm of $140B. I heard it's all under "Merchant Banking". A Lot of the real estate asset management is happening out of Dallas under the Merchant Banking group.

From what I've heard from people in the group the salaries are terrible. Like worse than corporate finance salaries at random corps.

WSO data seems to back that: https://www.wallstreetoasis.com/company/goldman-sachs/salary/analyst/da…

GS Real Estate base salaries in Dallas are around: $60,000 - $68,000 w/ low bonuses

Is there any validity to this? Are salaries low because of Dallas being a low COL area?

What do exit opps look like if you do Real Estate Asset Management for GS?

I am seeing 68 min for first years so unsure where you are getting 60-68. It is also your first year salary that most new grads will only be collecting for 6 months. It's not like this # doesn't go up in the future.

 
Analyst 1 in CorpDev:
I know recently Goldman has fused together alot of their divisions to form a direct investing arm of $140B. I heard it's all under "Merchant Banking". A Lot of the real estate asset management is happening out of Dallas under the Merchant Banking group.

From what I've heard from people in the group the salaries are terrible. Like worse than corporate finance salaries at random corps.

WSO data seems to back that: https://www.wallstreetoasis.com/company/goldman-sachs/salary/analyst/da…

GS Real Estate base salaries in Dallas are around: $60,000 - $68,000 w/ low bonuses

Is there any validity to this? Are salaries low because of Dallas being a low COL area?

What do exit opps look like if you do Real Estate Asset Management for GS?

I am seeing 68 min for first years so unsure where you are getting 60-68. It is also your first year salary that most new grads will only be collecting for 6 months. It's not like this # doesn't go up in the future

 

As someone who was an analyst in the AM group at Goldman, Salaries are not $60k out of college. I would argue that our analysts are actually overpaid compared to other shops in Dallas. I can’t comment on the pay structure in NYC, but they’re certainly higher than Dallas (but arguably less when you adjust for CoL. I would also say that the genesis of the Dallas RE office was not as a “back office” like SLC is. It was the headquarters of Archon, which GS acquired and continued to grow in Dallas. The size of the real estate presence there is largely from its beginnings with Archon.

Back when I was an analyst (in MBD), comp broke down like this: $68k base $5k signing bonus $15k year end bonus

After my first year I got bumped to $80k base with a $25k bonus.

 

Can confirm the above.

It aint much, but it's honest work.

 

As someone who works in this group, comp got SIGNIFICANTLY better for analysts when we merged into MBD. Comp this year was brutal (mbd took L on uber and wework) but first years all got 15-30% raises. Granted, the starting point was lower than anyone appreciated. but still, it seems like maybe they’re trying to retain junior talent finally?

 

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