Career Paths

Real Estate Career Paths

The most common functions for MBAs working in Real Estate are:

1) Financing real estate transactions
2) Buying, selling and managing real estate
3) Developing real estate

Some firms specialize in one function while others have groups that operate across this spectrum of functions. Occasionally, students will pursue brokerage or advisory functions such as consulting within the industry.

One of the key objectives of the real estate curriculum is to teach graduate students basic proficiencies about each industry function to direct their career search according to their interests and skill set. After participation in the classroom and the MREA’s various educational and networking events, students will be prepared to choose which path is the best fit and how best to pursue it.

Students will take courses to gain the necessary skills needed to succeed in their desired career path. The solid fundamental understanding of real estate markets, various asset types and real estate valuations will help students regardless of which part of the industry they decide to pursue. The industry can be broken down into five possible career paths:

1. Commercial Real Estate Development

Commercial real estate development consists of many activities, ranging from the renovation and re-lease of existing buildings, to the acquisition of raw land and the sale of improved parcels to others. Developers primarily are responsible for creating, imagining, funding, controlling, and orchestrating the entire development process from beginning to end.

Commercial real estate developers take the greatest risks in the creation or renovation of existing real estate – and respectfully can realize the greatest returns or suffer the greatest losses. Because of the intricacies involved in each type of real estate, most developers will specialize in a specific asset type or function within the development process. For example, a condo developer must be good at marketing and creating buzz around a project, while a land developer must focus on obtaining zoning approvals in order to make the project successful.

Developers are involved in all parts of the commercial real estate industry, and deal with design, construction, regulatory approvals, financing, investment analysis, brokerage, leasing, etc. Often smaller developers will outsource many related activities such as brokerage, leasing, or construction while larger developers handle these activities in-house in an effort to create more efficiency. Entry level positions include assistant project managers or development analysts.

Functions Within Development

Development Underwriting
Entitlements/Permitting
Community Outreach
Construction Management
Lease analysis

Career Development Within Development

Analyst/Senior Analyst
Construction Manager
Public Liaison (Government/Community Outreach)
Development Director/Project Manager
Principal

2. Commercial Real Estate Lending

Commercial real estate lenders come in many different forms: banks, insurance companies, debt funds or balance sheet lenders. They provide the debt capital needed to build or acquire commercial properties. Because almost all commercial real estate is financed with debt, commercial lenders play an essential role in the commercial real estate industry. Entry level analysts or associates typically work hand in hand with a relationship manager and are responsible for underwriting prospective loans. This involves gathering financial statements, tax returns, building pro-forma cash flow projections, valuing properties, and writing an internal credit memo, which is a document used to determine the feasibility of the loan.

Loans are various by nature and provide lenders with broad exposure to deals. Types of loans include construction loans, acquisitions, value-add re-positioning, bridge loans, land, development, home-builder lines of credit for lot development and construction, and more.

Functions Within Lending

Borrower/Credit Analysis
Investment Underwriting
Debt Capital Markets
Special Servicing

Career Development Within Lending

Analyst/Junior Underwriter
Senior Analyst
Relationship Manager
Credit Officer

3. Equity Investors

Many firms in commercial real estate focus specifically on setting up companies/funds specifically to buy and hold properties for a certain time horizon. Typically, these investors are (or are backed by) large institutions like insurance companies, pension funds, endowments, or are investment companies such as opportunity funds or REITs. A firm/fund will usually focus on a specific property type and geographic location, and will also target a certain risk level (value-add or core-opportunistic etc.).

The acquisition process requires collection, modeling and analysis of financial and market information. An investment professional will have to analyze this data surrounding a deal and either recommend making an investment or not. Roles within these institutions vary, but real estate students from an MBA program typically target positions in acquisitions or asset management.

​Functions Within Investment (PE, REIT, Operator, Investment Manager)

Acquisition/Disposition Underwriting
Investment Sourcing
Portfolio Management/Investor Relations
Asset Management
Research

Career Development Within Investment

Market Analyst/Researcher
Acquisitions Analyst
Senior Analyst
Acquisitions Officer
Asset Manager
Principal

4. Commercial Real Estate Brokerage

Brokers are everywhere in the commercial real estate industry. By most estimates there are approximately 100,000 practicing commercial real estate brokers in the U.S. Commercial real estate brokerage careers fall into two categories: Investment Sales and Leasing. Investment Sales brokers are hired by an institutional entity for the acquisition or disposition of commercial assets. Sales brokers will underwrite properties to determine a realistic value, create marketing packages, actively market the property for sale, and negotiate a final sales price.

Acquisition brokers will find deals that match the buyer’s acquisition criteria, underwrite potential acquisitions to determine value, and negotiate price and deal terms on behalf of the buyer. Entry level positions for Investment Sales brokerages include an underwriting/due diligence analyst, marketing associate, or research analyst.

Commercial Real Estate brokerage firms also work on behalf of landlords to lease their properties or tenants to find them physical space to operate. Brokers will serve as a fiduciary to their client and negotiate the best lease terms on their behalf.

Typically, commercial real estate brokerage is a 100% commission-based compensation structure, so it is a high risk/high return career and success is directly correlated to the amount of effort put in.

Functions Within Brokerage 

Relationship/Reputation Building
Transaction Underwriting

Career Development Within Brokerage

Salesperson/Agent
Leasing Agent/Broker
Associate Broker
Managing Broker

5. Investment Banks

Investment banks provide corporate finance services and strategic advice to firms and individuals participating in the real estate market. They raise debt and equity to help fund transactions and provide advisory work on mergers & acquisitions and restructuring situations. Often when a REIT or other large investment firm raises debt capital to finance a large acquisition or the purchase of another firm, they will use an investment bank.

Because most commercial real estate is local, investment banks typically work on larger corporate deals rather than small to medium sized local deals. These large deals involve Commercial Mortgage Backed Securities (CMBS), public capital markets, and large corporate clients. MBAs enter the industry as associates and assist in business development and the execution of a broad range of transactions.

Functions Within Advisory 

Raising Capital
Highest & Best Use Analysis
Asset Allocation
Investor Recommendation

Career Development Within Advisory

Analyst
Associate
VP (Account Manager)
Senior VP (Senior Account Manager)
Managing Director (Source deals, Maintain relationships)

 

Hiring Companies

The following companies have hired MBAs during the last two years for full-time or internships. You can see that most students went into the equity side of the business and it’s true that this is where most of the opportunities are. We saw many great opportunities on the debt side this past year as well. Many full-time jobs are sourced through off-campus means such as LinkedIn or SelectLeaders.com. A few real estate companies will come through On Campus Recruiting. Mock interviews with Parker and other students will help you prepare. While jobs in this industry can be sourced through conversational-style interviews, mostly to assess fit, some interviews can be very technical and you may have a modeling test so be prepared! ARGUS is the standard software within the industry and you will need to understand how to use this to be competitive for jobs.

Developers

Ratkovich Company
​LocalConstruct
Combined Properties
Shea Properties
Overton Moore Properties
McCarthy Cook

Investment (PE, REITs, Operators, Investment Management)

PCCP, LP
The Irvine Company
TruAmerica
Beacon Properties
Benedict Canyon Equities
AEW
Healthcare REIT
AIG
Regent Properties
CIM Group
HP Investors
DiNapoli Capital Partners
Arc Capital

Finance / Lending / Investment Banking

Eastdil (IB Group)
Acore Capital
AIG
Prudential
MetLife
Calmwater Capital (formerly Karlin)

Advisory

Green Street Advisors

 

Recruiting Timeline

The timeline for real estate recruiting can stretch all year for many people.  During Fall quarter of your first-year, you will need to learn the industry and build out a company and contact list.  You should start real estate electives no later than winter quarter of your first-year and consider doing an academic internship in the winter, spring or both.  ARGUS training happens in the winter and spring as well.  You may also consider doing a case competition which provides project experience.  You will update your resume with academic internships and projects as you progress in the year and will always be networking with fellow students, industry professionals and alumni.