Commercial Real Estate

Description

All real estate that is not personal homes including offices, retail centers, industrial/warehouses, apartment buildings, self-storage, biotech laboratories and hotels.

Something Cool

Real estate is everywhere you look.

Types of Companies

• Owners: They are the owners of the real estate.  This can be one or more private individuals, a set of funds or a public REIT.  An owner typically has a product type focus such as office or industrial.  Some develop (build) new buildings.  Some buy and manage existing buildings.  Examples of REITs: Prologis, Kilroy Realty, Realty Income.

• Lenders: They loan money to an Owner to buy or refinance a property.  Examples: banks like Wells Fargo or debt funds like Mesa West.

• Brokers: Typically licensed in each state, they assist Owners in the buying, selling and leasing of buildings.  Examples: CBRE, Cushman & Wakefield, Newmark.

• Property Management: They handle the day-to-day management of properties.  These functions may or may not be done in house by the Owner.  Examples of external property management companies: CBRE, Cushman & Wakefield, JLL.

• Construction: They build or rehab buildings for the Owner.  Bigger companies tend to do the bigger jobs.  Smaller companies tend to do the smaller jobs.  Examples: too many to list and often local to a region.

• Title & Escrow: They assist with the purchase or sale of a property.  Examples: First American, Stewart Title.

• Inspection: They perform various types of property inspections (physical, environmental, structural).  Example: Partner Engineering.

• Appraisal: They value a property, typically for a Lender.  Examples: CBRE.

Further Education & Credentials Required

• None unless you want to be a broker.  Licensing is typically required through the state.  Example for the State of California: link.

Entry Level Roles

• Analyst (Heads Down / Analytical): This is a great place to start with an Owner, Lender or Appraisal company.  The role is sometimes referred to as Financial Analyst, Research Analyst (Broker) or FP&A Analyst.  FP&A stand for financial planning & analysis.  BreakIntoCRE.com talks about this role in detail and even has a YouTube channel.

• Salesperson or Broker (Sales): If you have an extroverted personality as discussed in the Roles section, joining a Brokerage company is probably your best approach.  Most U.S. states require some sort of licensing before you can start.  The position tends to be commission based so your upside is unlimited.  I suggest joining an established team within a company as opposed to being a "one person show" from day one.

• Associate Asset Manager (Project Management / Create or Service): Many companies use the term Associate.  It is a junior role that could apply to anything.  An Asset Manager with an Owner focuses on executing a business plan for a collection of properties.  You might also see this role with a Lender with the focus on making sure the loans perform.

• Property Administrator or Assistant Property Manager (Project Management / Service): If you like operations and lots of variety in your day-to-day, this could be a good fit for you.  Property Management companies and many owners have these Roles.  Like any entry level position, it can be fairly administrative early on but over time can be very interesting.

• Construction Project Engineer (Project Management / Transactions or Create): This role exists at Construction and Inspection companies.  It helps to have an undergraduate degree in construction management. The roles tend to be out of the office at the property as opposed to behind a desk.

• Escrow Agent (Project Management / Transactions): Get ready for fast paced action!  Some Owners and Lenders have a similar position called a Transaction Manager.  The focus is on getting the purchase or financing of a property closed in a specific time deadline.

How To Learn More

• Talk to someone doing the role you want.  Check out my writings on The Gift of Asking for Help, Mentors and Networking 101 on The Search page to learn how to do this.

• Check out BreakIntoCRE.com.

• Interesting in investing?  Check out the blog of the investor Moses Kagan: kagansblog.com

  • Better understand your own skills and where you will be successful at Roles.

  • Check out my writings on various industries and departments at the Industries page.

  • Already know what you want to do but are looking for guidance on how to find a job within that industry?  Check out The Search for advice.