Office Broker in SF Bay Area questioning staying in the business
I am 26, have been a broker for about four years now. I am established in my market and have had some decent success. Before the pandemic this was shaping out to be my best year by far but the shelter in place ruined that pretty quickly due to clients holding off decision making until a vaccine, VC funding being pulled..etc. I want to hear from other brokers what your thoughts on staying in the business and weathering the storm or jumping ship most likely for tech sales. I love brokerage but am getting antsy and don't want to set myself too far back by waiting for something that might not recover.
[{"id": "gayhvpf", "text": "Not a broker, but could you just pivot to a different asset class like multifamily or industrial? \n\nIf the brokerage aspect is what you love, you can still pursue it.  You could just tweak your course a little bit instead of a full change in career.", "replies": [{"id": "gayi8ne", "text": "or even retail.", "replies": [], "depth": 2}, {"id": "gayi9rq", "text": "Appreciate the response. I have considered that, my main qualm with that idea is that it most likely would require me starting from zero again in a 100% commission position or taking a large paycut and a step back to become an analyst and learn that asset type.", "replies": [{"id": "gayimfa", "text": "I hear you. I imagine it takes a while to build up your book in a new asset class, but the skills are still super transferable.  You were able to do it once, it would probably go quicker this time around.  Either way - best of luck.", "replies": [], "depth": 3}, {"id": "gaykorf", "text": "Learn how to do section 363 sales and workouts.\n\nEdit: workouts in a cre context are mostly just paid extensions", "replies": [], "depth": 3}, {"id": "gb06ju0", "text": "I can't see it taking more than a week to learn a new asset class.  Any longer than that and you're wasting time.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gayiid6", "text": "Possibly getting into residential market. Many are still busy. Unless you want to sell failed business in business opportunities sector.", "replies": [], "depth": 1}, {"id": "gayiohl", "text": "Many rental property owners are leaving SF City saying their vacancy and rent reduction does not break even.  Some are buying in Tahoe or LA stating there is more a demand.", "replies": [], "depth": 1}, {"id": "gayj6v1", "text": "Consider moving, office market will bounce back much faster in states with less restrictions.\n\nWe already have tons of people back in offices in Atlanta.", "replies": [{"id": "gayl174", "text": "Midwest never stopped.", "replies": [], "depth": 2}], "depth": 1}, {"id": "gaymf0w", "text": "I\u2019m a commercial lender in the Bay Area. Obviously there\u2019s a lot of people looking to refinance right now so we\u2019ve stayed really busy but I\u2019ve definitely seen quite a few purchases lately. Let\u2019s connect and maybe I can help throw some business your way for my clients that \n don\u2019t have a broker. I specialize in owner occupied commercial real estate so Office space is my jam.", "replies": [{"id": "gb1hwkh", "text": "Damn what a fucking legend. Get this man an award.", "replies": [{"id": "gb1idiy", "text": "Lol, sarcasm?", "replies": [{"id": "gb1jif2", "text": "Not at all. I wish I had Reddit angels giving me referrals hahahah", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "gaypbhg", "text": "CRE, like many industries, is cyclical and we were riding a nice high for a long time. Now we're at a low. Things will come back - real estate doesn't seem to be going anywhere.", "replies": [], "depth": 1}, {"id": "gayzq6s", "text": "We are in a transitioning/ volatile/ highly uncertain market. That means there is a whole lot of nothing going on. People on every side need to get some clarity / definition to the market. Is this a hiccup or a long term disruption that will crush the market? The answer will become apparent in the months to come. Once we know the answer, the market will react and prices will reflect the situation. \n\nBrokers are valued more in a down market than an up one. The transition period is most difficult because you have so much uncertainty or unreasonable expectations from clients that it's hard to make deals. \n\nIf you love the business, stay with it and work hard now while others are huddled up at home. \n\nIf you are a leasing broker, I'm not sure what to tell you. There may be an oversupply of brokers if we have sustained problems and high vacancy. If you push to be a top broker you will do well regardless. \n\nI don't love being a broker any more. I've grown to not like being at the whim of my clients and not having control. As a result I've moved to the principal side of things. Maybe you see some opportunities now given your knowledge and expertise and can put those to work in a way other than brokerage.", "replies": [], "depth": 1}, {"id": "gazkzck", "text": "I\u2019m 26 as well and an commercial real estate broker for office in Orange County. I work in a huge firm and I\u2019m doing great. This is my first year and closed at least over 6 long 5 year deals all about 2000 square feet and above for about $2.5-$3.5 per square foot. Got a 2 million dollar listing and 10000 landlord rep. \n\nJust stay for the down turn when ppl start selling their office buildings lol", "replies": [], "depth": 1}, {"id": "gb0bqf9", "text": "With your username you are built for this. In all seriousness, if you have had some success and have saved well, you should stick it out.", "replies": [], "depth": 1}, {"id": "gb0jh7j", "text": "real estate will always find a way to come back, it may just look alittle different.  If you can figure out how the offices could be used in a unique way you might back into something great.  \n\nIf you truly love what you do you will figure it out! BOL!", "replies": [], "depth": 1}, {"id": "gb0jus7", "text": "I work in commercial real estate in San Francisco, though I\u2019m not a broker so we don\u2019t necessarily do the same thing. The first months of the pandemic were obviously horrible, but I have seen quite the uptick in business recently and also have noticed a strong contrast between some brokerages. Some have completely amped up and are doing insane amounts of leases/transactions and others are just waving the white flag at this point. I know I\u2019m going off topic but the point is that if doing CRE is what you love, and have always wanted to do, stick with it. I\u2019m a big supporter of doing what makes you happy. If it doesn\u2019t make you happy anymore, then call it a day.", "replies": [], "depth": 1}, {"id": "gb0skrf", "text": "I have a lot of friends and family in the Bay area including business owners and partners.  Many are moving especially if they have no real reason to keep their office staff in a central location.  That being said they will have to do something with the office spaces. Whether that is converting them to other assets or whatever they will need a broker.  If the only thing you want to focus on is tenant leasing or selling leased buildings, then looking elsewhere may be in your best interest in the near future.", "replies": [], "depth": 1}, {"id": "gb0t63x", "text": "You have a tough niche in a tough market.  But there is opportunity in every market direction.  Consider the downward pressure on office space.  Larger firms will no longer need the footprint they have but will still need to maintain an office presence.  COVID has also forced distancing requirements that will likely prevail long past the pandemic so those who can occupy 2000 sft may still need as much space, and in some instances more.   I'd say hang in there and look for companies needing to scale down, not up.", "replies": [], "depth": 1}, {"id": "gb0unjl", "text": "The next year will suck. You may need to pivit to a different focus for the time being? What about subleasing space?\n\nYou'll need to decide what you want to do, but keep in mind, all the other brokers in your area are pondering the same thing, so if you can stick it out, there will be less experienced competition after this as some brokers will have quit.\n\nGood luck and take care of your mental health regardless of what you decide.", "replies": [], "depth": 1}, {"id": "gb6b54r", "text": "I am not a broker but for many years I worked as an office, retail, and industrial analyst at a large capital markets intermediary. The three brokers I worked for had 25+ years in industry and repeatedly told me they learned the most about CRE and brokerage during the GFR in 2008 over any other event that took place during their careers. I am 25 (f), born and raised in the Bay Area, and spent the majority of my CRE career in brokerage.\n\nReal estate is cyclical and it will bounce back. If you love brokerage, I recommend staying in the industry and find the pockets of opportunities that other brokers are missing and capitalize on them. These challenging times may turn out to be the most transformative and enriching years of your career so long as you can be adaptable and pivot, strategize, and actively seek those new opportunities the pandemic is presenting. If you make this happen, I am certain you will come out the other side with an increased deal flow, more credibility, a stronger reputation, and a more respected broker. \n\nMany of my buddies do tech sales and speaking personally, I find CRE to be a more respectable, rewarding, and unique career choice, especially within a market like the Bay Area. \n\nFor the last year, I worked on the principals side. We were hired by a large tech company to advise on four master planned developments in the South Bay/San Jose market. I left the firm a few weeks ago and I am giving significant thought to transitioning over to the brokerage side again. \n\nShoot me a message if you want to chat further or bounce some ideas around. Would love to connect.\n\nBest,", "replies": [{"id": "gbrwmvy", "text": "Sent a message!", "replies": [], "depth": 2}], "depth": 1}, {"id": "gb8ie2k", "text": "SF seems like a crazy place. There's so much stuff around the bay area.\n\nAnd you might want to reconsider the brokerage idea. Yeah you can broker sales and leases for clients but there's other stuff too.\n\nI don't know what your goals or ambitions are but your business can be something that manages your own assets.\n\nOf course this \"storm\" would still affect you. I guess it depends on what you have in reserves and if you need to liquidate anything. And your business structure and liabilities.\n\nBut real estate will always be real estate whether now or a hundred years later.", "replies": [], "depth": 1}, {"id": "gc0efvf", "text": "Don\u2019t quit. Don\u2019t get thrown off the horse. Stay on. Adjust. Call small to mid size banks and learn about REOs. Adjust. Wake up earlier and pound the phones harder. Adjust. Try a new product. Adjust. Get your CCIM now. Adjust. Bamboo is flexible...can withstand strong wind", "replies": [], "depth": 1}]