Should I take this job in CRE? Worried about the market and if there is Money to be made
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[{"id": "g9dun7a", "text": "As always... it depends. Where are you located? What asset class? Etc. \n\nIndustrial is the hottest right now.", "replies": [{"id": "g9duyr1", "text": "Missouri and class A. Office only, I could do industrial but it\u2019s not our sweet spot", "replies": [{"id": "g9dwh6n", "text": "I am of the opinion that the shock an office has yet to actually hit depending on where the lease role is in any particular asset. If it\u2019s in a more suburban community, I think that office buildings not in the urban centers will do well in the near term as companies follow a hub-and-spoke model as an (over)reaction to COVID.", "replies": [{"id": "g9irv88", "text": "Exactly this.\n\nDo you need money every month to live or can you financially support this whim? If I worked in furniture sales as a salaried individual and I was trying to be ambitious to a commission-only future I think I would take one look at this market and say no I would rather eat this month. You'll be making nothing while relying on the coat tails of your team and an unstable office market.\n\nOn the bright side you'd be opening up a new position in the labor market! While taking one that probably doesn't need to exist right now.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "g9dxdnv", "text": "You've got to tell us more. Like what are you doing now and why would this position be better than what you have? If they're busy enough to need a third person that's a good sign. Ask to  tour the properties you would be repping. Is it strictly leasing, a mix of sales and leasing, or just sales? Get the commission structure in writing. Is it exclusive? Do you have to sign a non-compete if you leave? How long is the protection period?  Commercial deals, especially big ones, can have a long gestation period.  Just telling us \"office\" is not enough to give you a decent answer.", "replies": [], "depth": 1}, {"id": "g9dyerm", "text": "In terms of whether or not to take a entry-level broker position, the market cycle shouldn\u2019t really affect your decision. It\u2019s largely the same (if not better) in a down market. \n\nJust make sure they\u2019re offering legit mentorship.", "replies": [{"id": "g9ed4q9", "text": "This is on the money. Mentorship, and high levels of interaction with a successful senior broker are all that matter if you are new to the business. You are being mostly paid in valuable experience that will allow you to make more money in future years.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g9e95to", "text": "Ask about deals done in the past 6 months. You will get an idea of the activity.", "replies": [], "depth": 1}, {"id": "g9eazwa", "text": "16mm isnt that much when you're talking real estate", "replies": [{"id": "g9q52s5", "text": "My first thoughts too", "replies": [], "depth": 2}], "depth": 1}, {"id": "g9ed0t8", "text": "1) Are you a brand new broker to the business? If so, in ANY brokerage role, even in good times, it tends to be a pure commission job and it typically takes a couple years of paying your dues before you make any reasonable amount of money - and that's during normal times.\n\n2) $16M worth of properties is great, but leasing them alone is not enough to support 3 guys, not even close.\n\n3) There IS money to be made, but it is being made by those with experience. It would be a very difficult time to start from zero, so the one good thing is if you can work with an established, experienced team. But don't expect to be crushing it right out of the gate.", "replies": [{"id": "g9gp5d7", "text": "I am brand new. But I work in commercial furniture sales now and have been here for over 3 years, so I know the industry. \n\nWhat kind of upside am i looking at here? Let\u2019s say down the road, what do brokers make avg?", "replies": [], "depth": 2}, {"id": "g9gpbm8", "text": "They just acquired the additional 16M this month and they have a huge portfolio. I think that\u2019s why they need the help.", "replies": [], "depth": 2}], "depth": 1}, {"id": "g9foed7", "text": "$16m is dog shit for landlord rep!  For a second, I was thinking 16mm sq ft.  You will starve with these guys!\n\nI am in a somewhat similar situation.  Joined some buttholes who claimed to be experts to do valuations, research and support deal execution.  They gave me a 6 figure base and a nice 10 percent of gross commissions.  Gave me a non compete and also didn\u2019t want me making cold calls.  \n\nWhen covid hit, they cut pay in half and told me to hit the phones or leave!  It\u2019s been a terrifying 3-4 months.  No jobs available and the market is just f**ked.  Also, the guys I work for don\u2019t train.  Said they will never cut my salary and had promised a lot... I am holding a back of crap!", "replies": [], "depth": 1}, {"id": "g9gaw3v", "text": "Recommendation: If you have no other opportunity, take it. Focus on using future uncertainty to increase your position in the group. EVERYTHING IN WRITING, especially with brokers. Whatever has been promised so far, put it in an LOI and send it to them. If the process starts in writing, it ends in writing. I would especially state the commissions and any discussed increases in percentage as you bring in more business or stay with the company. I'd also state the base salary amount and that no decrease can occur for one year. I would 100% leave out any mention of non-compete, stating it has not been mentioned up to this point and it would have a price tag.\n\nExperience: Class A office seems like the 2007 vacation Condo. It will be the first direction change and expense cut - you can always downgrade to lower office spaces. If all they do is Class A office, that would be worrisome. That said, it's not impossible for them to start doing class b and c. I do not believe office is simply going away in the next few years. I think the excessive spending on office in prime markets with top-notch finishes is going to change.", "replies": [], "depth": 1}, {"id": "gaane0b", "text": "&gt; My concern is the current environment, as I\u2019ve seen several companies downsize their space and switch to a work from home model.\n\nI agree with most of the rest regarding 16m of properties being hard to support 3 people (though I guess it could depend on vacancy etc, based on you saying its in a hot area and not mentioning anything else I'd assume its close to market occupied?).\n\nThat said as a broker don't worry about companies downsizing.  Thats an owner problem not a broker problem.  A decline in demand sucks for us but all that space hitting the market isn't bad for us at all.", "replies": [], "depth": 1}]