Which roles in a large brokerage firm (CBRE, JLL, C&amp;W, etc.) typically get laid off first?
CBRE just announced that they will be doing layoffs over the next 6 months, and I imagine some other firms will do the same given the current state of the office market and possible recession soon. So I was wondering, what are my chances of being laid off as a Research Analyst for one of these firms?
[{"id": "iu1rt2g", "text": "Anything transaction related from coordinators, legal, analysts, etc. If your department\u2019s workflow is slowing, you might be at risk.", "replies": [], "depth": 1}, {"id": "iu1sxy0", "text": "Agree with other comment, but after surviving many layoffs over the years I\u2019d also add the first round also includes people who they wanted to let go in the past but didn\u2019t have the grounds too. Basically the minimum performers that no one likes.", "replies": [], "depth": 1}, {"id": "iu23yt3", "text": "Generally they'll trim brokers (low performers), client coordinators, marketing/graphic design (often contractors anyway), conveyancing, and research or financial analysts **if** there's a surplus of them. \n\nGenerally they won't go after research if it's a lean department as they want to retain continuity for reports, market stats and brokerage support. If I were you, I'd just focus on becoming invaluable to a couple high performing teams in your asset class. The reality is that you're probably cheap in the grand scheme of things and if a couple of high performing brokers see value in you, management will probably keep you around to keep them happy.", "replies": [{"id": "iu374og", "text": "Correct me if I\u2019m wrong, but aren\u2019t brokers independent contractors with CBRE? if they were independent contractors it wouldn\u2019t cost them anything to keep them on. Am I wrong here please let me know if I am.", "replies": [{"id": "iu37frp", "text": "Brokers are either personal real estate corporations (contractors) or employees. Either way they only make money when they bring in fees or commissions. Young brokers will generally get a small training salary or draw for a couple of years.\n\nIt doesn't cost the brokerage house anything except for desk space and software licenses to keep them but they'll generally trim the low performers anyway on the basis of trying to consolidate business around better performing brokers, and to keep broker/support staff ratios when they fire some of the latter.", "replies": [{"id": "iu37rg4", "text": "Thanks for the insight. I am A junior broker for a boutique firm but we are all on 100% commission. Large firm business practices are quite foreign to me. In addition I\u2019m actually quite surprised to hear about the layoff of CBRE. Our firm has been doing really well within the past few quarters. Granted, we are mainly retail and not too much office. (On the West coast if it matters)", "replies": [{"id": "iu381xt", "text": "Retail has been a bit of a suprise winner over the past year. It was somewhat oversold leading up to and during 2020 when e-commerce seemed to be killing conventional retail tenants. It has really come roaring back though. \n\nI'm really glad to hear you're doing well right now. I think you're in a good spot for the next couple of years while the market reprices and reallocates.", "replies": [{"id": "iu3a1vr", "text": "I really appreciate the thoughtful post and encouraging words! Love to see a genuine nice guy/gal in this industry.  \n\n&amp;#x200B;\n\nThank you!", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "iuts2mw", "text": "Just an FYI CBRE's brokers are employees not independent contractors. They get paid salary plus a bonus depending on how their team heads choose to disperse.", "replies": [], "depth": 3}], "depth": 2}, {"id": "iu7zkk6", "text": "Marketing and graphic design aren't contractors at any traded company, they're funded departments. But that can be the case at lower tier firms in lower tier markets.", "replies": [{"id": "iu99ppo", "text": "I should have said they have a higher incidence of contract employees than other departments (like research or finance). \n\nI've worked at two global top 4 brokerages and there are always a number of contract employees in those departments. Managers are always permanent staff though to your point.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iu2d0ro", "text": "I misread it. \"Which brokerage typically gets laid first?\" \nNow I'm wondering if mods will allow my post?!?\n\nSerious answer comes down to broker split and base pay. I worked for a commercial broker in 2009 and the first round was 10% salary cut to staff. Second round was staff layoffs and shifting all brokers to 100% commission and no base pay.\n\nIt isn't a matter of firm, it is a matter of cutting the cash loss and figuring out if you are a prime target due to high pay and stuck accepting the pay cut for staff or not bringing in more than your expenses in sales.", "replies": [{"id": "iu2koda", "text": "Do any of the big shops have brokers that are on salary? I know that most new brokers will get a draw but I\u2019m curious to hear if other brokerages maintain that last the first 12 months?", "replies": [{"id": "iu2mcae", "text": "I was implying that the draw was one of the first things to go for newer leasing and sales brokers. Another thing I omitted was the pay split might change at a desperate or greedy brokerage.\n\nIn commercial mortgage brokerage, there could be a longer period of base pay plus commission. This structure would allow a longer runway for being both an analyst and broker to pay for the analyst work.\n\nI know of one boutique broker that did a shared commission across the team. That translates into base pay plus bonus based on various production points. This Business model focused on regularly contacting all people active in a market for sales so the broker team wouldn't cut corners with email blasts, and not so leasing that would distract from working on getting and selling listings.", "replies": [], "depth": 3}, {"id": "iu2ohow", "text": "&gt; Do any of the big shops have brokers that are on salary? \n\nMost don\u2019t but there definitely are brokers on salary, even for people who have been in the industry for a while.\n\nI\u2019m in FP&amp;A at one of the three in the title and was surprised that our top sales team had salary (and it\u2019s much higher than the usual company gives just so junior brokers can get by until deals start coming in). They\u2019re kind of a special situation though. \n\n\nFor the rest of brokers that have a salary, it\u2019s either a low salary or something where company recovers it from revenue that broker/team brings in.", "replies": [], "depth": 3}, {"id": "iu4b61z", "text": "I think Eastdil is.  Also Moran before the got bought by Berkadia.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iu2yzpl", "text": "When the shit hits the fan, you want to know how fast it is spinning. I survived last downturn in research and it was busy! People want to know why their shit is not selling, where rents are, what is going on in the market ect. \n\nWe went through so many managing directors though, turnover at the top was high, but research was just part of the furniture.", "replies": [], "depth": 1}, {"id": "iu5cyyk", "text": "I work for CBRE in the Nordics. A colleague working with research had to go due to financial reasons. Our CEO indicates that times are tough and that companies will have to take actions.", "replies": [], "depth": 1}, {"id": "iufixyi", "text": "Shared admins, marketing, facility coordinators. Research should be safe. If you need some ideas to make yourself invaluable please reach out. This CBRE thing is very shitty.", "replies": [], "depth": 1}, {"id": "iugcvqa", "text": "Rule of thumb in my market is if you\u2019re a 1099 and got fired means you\u2019re a shitty broker", "replies": [], "depth": 1}]