How hard is it to switch asset classes mid career?
How hard/easy would it be to transition from say office to hotel/hospitality, or multifamily to hotel/hospitality, retail to office etc.
[{"id": "dt4dmxq", "text": "In brokerage? I\u2019ve switched a few times while transitioning slowly from one to another. Not too difficult if done right and you still have all of your contacts and knowledge from the other so if a deal passes by that you have contacts for from your last field you still have the opportunity to take advantage of it. \n\nEdit: Dont get me wrong, it takes time, but difficulty wise it\u2019s not very hard. ", "replies": [], "depth": 1}, {"id": "dt4ocbv", "text": "By mid-career do you mean 3-5 years in or 10-15?  \n\n3-5 years gives you enough background in the core fundamentals of dealmaking that you can transition to any asset class and you won't lose too much.  10-15 years you are giving up a lot of specific market knowledge and contacts.\n\nOffice/Industrial has a more interconnected network - a lot of developers and owners of those assets develop and own both.   SIOR and NAIOP are good examples of the overlap of these networks.  My Dad has a 35+ year career as a broker/developer of industrial and office.\n\nI'm a retail broker with over 10 years in a major national market.  A transition to a completely different asset class would be difficult as would a transition as a broker in another market.\n\nIn smaller markets (third tier), a lot of brokers do all the various asset types. In bigger markets you want to eventually pick a focus and be an expert.", "replies": [], "depth": 1}, {"id": "dt7u6fs", "text": "As an investor, I learn new asset classes/new markets (well enough to process the pertinent information) in a few days.  It's hours upon hours of looking at listings, speaking to brokers, and learning the numbers but it still only takes 2-3 days.  I would imagine it would take less than 2 weeks to know a class/market inside and out and another month or 2 to know everything (history, major players, future trajectory) Obviously, the size of the market will influence how fast you could learn it.\n\n It really depends how immersed you want to get.", "replies": [], "depth": 1}, {"id": "dtbigxi", "text": "I would say very hard for leasing brokerage and easier than that for investment brokerage. I would also say very hard for operational real estate (development and owner/operator models) and easier than that for asset allocation models. \n\nIt really depends on the level of detail you need to know to make a good decision. If you are advising users or creating space for users, the criteria is different than if you are making a value-based investment decision such as, occupancies are 90% in a submarket, and I\u2019m buying a 70% occupied office building there which is generally functional and well located, leasing it, and selling it. ", "replies": [{"id": "dtjtvzq", "text": "Thanks for the response. I\u2019m wondering from the investment or financing side, how hard/different is the switch between asset classes", "replies": [{"id": "dtju69u", "text": "Depends on how in depth / focused you are on the property type - office to industrial is easier than industrial to multifamily. Financing is easy because that is more about trusting the operator than operating the property. ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "dtd1xfe", "text": "I would say hotels are harder to switch into then others. Specifically due to the complexity of the brand/operator and since the revenue structure is so different - \u201c1 day leases\u201d and all. \n\nMany shops I deal with for example have a hotel group and an \u201ceverything else\u201d group for asset classes. \n\nThat being said the switch can be done, but likely with a slight step backward at a new position while you learn new things. \n\n(I do hotel development BTW)", "replies": [], "depth": 1}, {"id": "dtiyfuf", "text": "I've been a successful broker for 15 years or so. I've done 3-4 major jumps and still don't think this is my final form... the problem that you have to contend with in hospitality is that yields and operations are intertwined way more than multifamily and office. There are no NNN costs, financing is totally different and  the buyers often have different parameters which are inconsistant from company to company because operation cost and the cost of sweat equity can vary widely.\n\n\nBut to answer the question you posed. yes it's hard. but if it's profitable it's meant to be hard. I don't believe in easy money. You just have to do it. but if what you're doing now is working for you, don't jump ship unless it's dead. because a big deal could come along and you don't want to be too busy focusing on pipe dreams. \n\n\n", "replies": [{"id": "dtjtrgx", "text": "I work on the financing side, so I\u2019m wondering how different or hard it is to make the jump between asset classes from the financing or investment side?", "replies": [{"id": "dtjwu8g", "text": "The only place where they may interlope would be investment side. I get offered hotels at very good cap rates but they're a business. They're hard work. However you can put money in and get a return. \n\nFrom a financing side, I don't know to be honest.", "replies": [], "depth": 3}, {"id": "dts1knb", "text": "My experience is that they overlap at a corporate level, but rarely on a departmental or individual level. Meaning if your dealing with a PE shop on hospitality your dealing with the hospitality group and it\u2019s people who have little to no involvement in other asset classes.  You can do the jump, but the revenue model is so much different and metrics are much different. \n\nA concrete example of that is as simple as how you talk about costs at a generic level - either per key (hotels) or per SF (most other real estate). ", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}]