Are there any brokerage firms that offer a base salary?
I’ve been working for a large office/retail developer over the past few years handling tenant leasing and marketing for a handful of properties in my greater metro area. I’ve been considering moving into brokerage (a lot of what I do overlaps) to increase earning potential, but had no idea that seemingly *all* firms are commission only. I am quite aware that deals take a long time to source and close, leaving my choices to either join a team kind enough to let me in on active deals or take a draw.

Is this just a corporate firm thing - is anyone aware of firms that offer a base salary to their brokers? It seems nonsensical for a growing firm to limit their talent pool to people that have a couple years worth of expenses saved up. 

[{"id": "d7jwak2", "text": "I don't know of any firms in my area that offer a salary.  Brokerage is a sales driven market, you don't sell you don't eat.  It's why you either will make it in the business and make some really good money or you will leave and go back to whatever you are doing. \n\nThe draw is to help the people that don't have a couple years saved up.  \n\nThe salaried jobs in the business are analysts and marketing.  ", "replies": [{"id": "d7jy2l7", "text": "I wanted to answer but you said everything that applies. If you want a salaried job then look outside of brokerage ", "replies": [{"id": "d7k06xk", "text": "To OP's point, you are not selling steak knives; brokers should be viewed as consultants. I have seen many incompentent young brokers come into our office living off of their parents - because who else would want to/have the ability to go 1-2 years making nothing?\n\nWith that said, I have heard (hoping someone can confirm) that the only exception to this is Eastdil secured (which might not apply to OP since they do not do leasing). They are the elephant in the room when it comes to  deals above $100MM in major markets - I have seen their work and it is unbelievable.\n\nWhen you think about it, any fee-dependent industry (investment banking, architecture, etc.) is \"eat what you kill\", but they attract some really bright people with a base and keep them running with production based performances at the end of the year. I often wonder why the majority of CRE brokerage has never mirrored this model.\n\n_______________________\n\nFurthermore, when I was interviewing out of college, I did come across a small (5 people) boutique firm offering a $35k base plus commission. I suppose they needed a young person to come in, but could not compete with the corporate firms' recrtuiting efforts.", "replies": [{"id": "d7k22po", "text": "There are some firms that just manage their own properties and have in-house brokers to just handle the small 1-3 year leases that come and go.  For example, you work for a team that owns a bunch of grocery anchored tenant shopping centers and they need a leasing agent to handle the nail shops and pizza places in the small junior boxes that accompany it that come and go. \n\n Most of these are just calling on the sign anyway so they just pay you a salary to handle them and maybe let you participate and get your feet wet with some bigger deals as you move a long.  Those opportunities are rare, at least where I am, but im sure there is something like that in different cities. ", "replies": [{"id": "d7k37r5", "text": "That seems to be OP's current role", "replies": [], "depth": 5}], "depth": 4}, {"id": "d7k739x", "text": "&gt; $100MM\n\nHonestly, while doing deals at this price point sounds and is impressive, the fees usually get so beaten up at that level that you can make more commission selling smaller buildings because you get a higher percentage of the sale price.", "replies": [{"id": "d7kd6bo", "text": "Agreed, you get far better fees in the $1-$40 range.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "d7l2v1u", "text": "&gt; The salaried jobs in the business are analysts and marketing.\n\nHi!, for big brokerage firms like JLL, CBRE, Cushman, etc in cities like NYC, DC, LA  how much salary are we talking for analysts starting out? And I do not want to be a broker, I know thats where the money is and brokers are the top dogs in brokerages, but what is the career path for analysts who do not want to become brokers? Thank you!!", "replies": [{"id": "d7l389n", "text": "I would be guessing as I have never worked an analyst role before.  I do have Friends/co-workers that have done so in mid-major cities but not for JLL CBRE, Cuchsman etc and not in NYC, LA.  They had starting salaries around 70 Prob would go up to 120 at the top.  Again, I'm guessing here. ", "replies": [{"id": "d7l3c8z", "text": "Sounds good, do you know their career path? do they want to become brokers eventually?", "replies": [{"id": "d7l3p3f", "text": "Some were brokers first then went to analysts.  Others are analysts that eventually want to be brokers.  Some are analysts that eventually want to get into development. ", "replies": [], "depth": 5}, {"id": "d7lrjfq", "text": "just speaking personally but analysts I am familiar with all went into brokerage.  If you didn't demonstrate a desire to want to do that, I think you'd honestly have a problem getting that job.  It is more or less a foot in the door to join a team, where they want to train you and have you become a productive member.  \n\nSome brokers do go into corp real estate to get out of the commission grind,  but I think those jobs would be tough to get without transaction experience.  Some real real big companies might employ analysts, but for every one of those jobs there are 100 jobs where you are more or less a broker who represents them as a single client.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "d7l85z9", "text": "As a former financial analyst on an investment sales team at one of the firms you mentioned in one of the cities you mentioned, I can say that my peers coming in with little CRE experience can expect $55,00-$60,000 base salary. If you get your salespersons license, you can expect annual bonuses anywhere from $1,000 to $20,000. If you were to come in as a senior analyst with experience, salaries will depend on the firm, team, market conditions, etc but I would not expect a base salary higher than $95k.\n\nIf you are not interested in brokerage, you can transition into lending, acquisitions, or even development (if you have a handle on your market and understand construction costs).", "replies": [{"id": "d7mllil", "text": "&gt; former financial analyst on an investment sales team at one of the firms you mentioned in one of the cities you mentioned,\n\nI would love to be one!, any tips that will put myself in the best possible situation in order to be competitive for a job like that? I am working in residential real estate right now, graduated from college a year and half ago, and early next year plan to do my masters in real estate finance, would love to be in CRE finance. Plan to learn Argus, also plan to work in CRE to get my foot in the door while taking classes in the evenings. Thank you!", "replies": [{"id": "d7mzw35", "text": "Most important to know: the openings you see on the career websites, linkedin, etc. have already been filled.\n\nMonitor your market, see who the big players are, see who is growing, who has left for another company, etc. - then approach with an email, cold call, hell - even a physical cover letter will grab their attention. It's all about timing.\n\nThese positions are extremely competitive and hard to get without established relationships, so consider starting with a research or support role first. \n\nFinally, just understand your market, the team's product type, active deals, etc. Go into the interview with stuff to talk about, don't act like someone young who just wants to learn - these guys typically need someone that can come in hitting the ground running. \n", "replies": [], "depth": 5}], "depth": 4}, {"id": "d7otoxv", "text": "As a current financial analyst on an investment sales platform with a company he mentioned in a top-five metro, these numbers are within 5-10%. On an added note, our team is slowing down in hiring due to lower transaction volume this year.\n\nI have my fill of brokerage enough to know that it is not for me. As such, I'm exploring internal corporate roles. An analyst colleague recent left for consulting and a senior analyst colleague left for an acquisitions and development role with a medium-sized firm.", "replies": [{"id": "d7p3n72", "text": "Good to note that comp is also dependent on the market cycle. I think many brokerages are slowing down their hiring and if OP is able to join a team, should expect a lower offer.\n\nCurious - what kind of corporate role are you transitioning to? Operations - or transaction mgmt?", "replies": [{"id": "d7pql5t", "text": "Nothing is confirmed yet, but I'm pursuing an operational role with a focus on analytics supporting business development efforts. ", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "d7lnq87", "text": "Certified general appraiser is a career path option. You start as an analyst/trainee. It requires 300 hours of specific classes and 3,000 experience hours over 30 months minimum that don't start until you take the first three classes and get a trainee license (in most states anyway). Base salaries are $30,000+ depending on previous experience. \n\nThere are niches within appraising: bank financing, litigation, consulting, etc. It can be tough to find a firm willing to take on trainees as it's a years long process and intensive. Long term salaries depend on if you are with smaller firms or the big guys like CBRE or Cushman. Many are one man shops or family businesses. Pay is typically tied directly to production. You get a cut of every report published. Some are commission only, others are base salary plus bonus, or draw plus bonus. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "d7k24hy", "text": "Almost none in the US and especially not in a slow market. Too many desperates thinking they'll strike it rich in brokerage. Take it from me, it's not a business you generally want to enter as a young person, unless it's a red hot market and deals are everywhere for the taking or unless you're paid a good base salary or if you come from wealth and can sustain a few years without earning money. The major markets are ultra saturated with brokers so there's no incentive to pay a broker a salary. \n\nIt's a difficult business to add value you in unless you have loads of contacts -- as in, you are an industry veteran. It's much better suited for someone who perhaps have been in the real estate business for 15+ years and is now looking for a more entrepreneurial route that leverages their connections.", "replies": [], "depth": 1}, {"id": "d7k45td", "text": "I don't know of any firms that offer a base salary to the everyday broker. I have heard stories of very successful brokers being offered salaries to switch firms, but not common. In my case I went from 100% commission broker to a base salary doing brokerage and property management. ", "replies": [{"id": "d7lrxy1", "text": "I have too.  I don't know all the details obviously, but the couple I heard rumors of you are talking team leaders who generate 5mil+ in commission (I live in Cincinnati, so that number maybe doesn't translate well), usually have semi proprietary systems and private client lists, and are at a stage where they are deciding if they should start their own brokerage or stay with a big one.  Its more of a signing bonus part of the deal to revamp and entire department. They also take large staff allowances etc they negotiate with that.  \n\nAnyhow, I agree, but there is no way a new broker is getting those kinds of deals.  To play that game (at least here) you better be bringing serious money and your base is going to be hundreds of thousands, not 'well kid we can give you 35k and see how this goes'", "replies": [], "depth": 2}], "depth": 1}, {"id": "d7k55sb", "text": "Contrary to what others have said, this is actually a common compensation structure in smaller firms found in mid-sized cities. Depending on where you are currently located, it might be worth considering a small, private shop then use your experience to move to a more corporate firm later down the road if that\u2019s what you are looking for (depending on the market conditions, you may even be able to get a signing bonus when switching firms).", "replies": [], "depth": 1}, {"id": "d7k70fv", "text": "You are correct to assume that starting out deals will take a long time to source and close.\n\nAlmost no brokerage firms will offer any base salary. Some will offer a draw and some will not.\n\nBrokerage does offer greatly increased earning POTENTIAL from many in-house positions, but it's pretty much exactly that risk that justifies the high salary. Many who do do not produce will make far less, and commercial real estate brokers have a very high turnover rate in the first two years from new brokers who simply aren't earning enough to survive in an all commission job.\n\nThe question really is are you willing to trade the security of a regular paycheck for the mere opportunity to earn more?", "replies": [], "depth": 1}, {"id": "d7ku4bt", "text": "In NYC, yes. Eastdil, ackman-ziff, and CBRE (if you're on one of the best teams).  Some shops are moving away from strictly commission based to prevent the lack of sharing of information and competitiveness that comes along with strictly commission pay structures ", "replies": [], "depth": 1}, {"id": "d7mrzbe", "text": "Eastdil Secured. They're organized like an investment bank", "replies": [], "depth": 1}, {"id": "d8npcl6", "text": "I have a salary and work for a privately held REIT with 48 properties. To be very candid it is a \"low\" salary with commission structure of 2% on call-ins without representation, 1% on call-ins with representation, 4% on \"cold-calls\" or any business that I bring in on my own efforts, 2% on cold calls that have a broker or broker referral business, 1% on renewals without representation, 1/2% on renewals with representation, etc. etc. There are a few buildings that we call \"double commission buildings\" that have higher earning potentials because the occupancy is low. Then if it's a cold call and a double commission building that is considered \"2 bonuses\" and the total commission doubles again. I also have a \"forgivable draw\" that I negotiated during hiring. Not everyone here has one, I think maybe 2 others do. It's 20k on every bi-weekly paycheck that I receive and of course when I make a commission check, that commission pays back my draw until I'm positive (which I will be this month, YAY!) Hope this helps! I will say that the drawbacks are the company is difficult to deal with and lacking in professionalism. I had to leave commission only positions post divorce and definitely miss the structure and professional feel of those brokerage houses however, the paycheck helps until I can transition back into an \"eat what you kill\" environment. Oh, and forgivable draw means that if I quit or get fired, I am not liable to pay back the owed amount or deficit on my draw. ", "replies": [], "depth": 1}]