Adding Value
Once you have landed a job and are beginning the next phase of your career, how can you be successful? See below for some recommendations.
Understand How the Company Makes Money - This seems simple, but sometimes it is more complicated than it sounds. Unless you are working for a REIT, many CRE companies make the money that pays your salary by earning fees. Fees come from managing properties. The owners of the real estate may be different than the owners of the management company that employs you. Look at your paystub to see who is paying you and try to understand how this company/entity fits into the big picture.
Be Curious - Ask lots of questions. You want to understand as much about the business, each department, the properties, and every other aspect of the business. Make sure you read the company's press releases and social media posts regularly. Maintain a student mentality. A student is always learning. Just because you have landed a job, doesn't mean you should stop learning. Always be learning.
Be Driven & Humble - This is the magic combination.
Take Notes - Never show up to a meeting without a notepad and pen(cil). Never. Writing things down shows you are paying attention and can be relied upon to do what you say you are going to do. Laptops are a OK alternative, but they are full of distractions and can give the impression that you are focused on other things.
Volunteer - When there is the opportunity to volunteer to take on a project, do it. This will allow you to learn and grow. It will also show that you are there to work and add value.
Create Relationships - Try to get to know everyone at the company, or at least in your office. Be brave and introduce yourself. Say hello in the kitchen. Get to understand what that person does and how their department fits into the overall company. You never know when you will be working on a project with someone in the future.
Use Your Time Wisely - Unless you are in customer service, sitting at your desk and responding to emails all day is not work. This is the coordination of work. Actual work is doing something that create value or keeps the machine of the company running. Manage your time. Make sure you fit in the projects that move the company forward. Beware of the pseudo productivity of email.
Take Breaks - Huh? Yes, take breaks. Take 5 minutes to walk outside. Try a walking meeting. Give yourself the ability move your body and reinvigorate your mind.
Leverage Technology - Technology is changing fast, yet its adoption in the workplace can be slow. Pay attention to the software that your company already has. Something that is simple for you to understand may be harder for someone else. Use this to your advantage to become a subject matter expert. Some of my favorite Microsoft tools: Teams, PowerBI, Planner, OneNote, Copilot.
Don't Be a Jerk - This should be obvious, but some people still behave poorly. Everyone is dealing with something challenging outside (or sometimes inside) the office. Be kind. Be helpful. Give people the benefit of the doubt.
Finding a Job & Creating a Career
Career. It is a big word that is used regularly. What does it really mean? Let's start with a "job". A job is anything that you do in exchange for some benefit, usually a paycheck. You may love it. You may hate it. It might be similar to the job you had before, or it might be totally different.
A "career" is one or more jobs that tie together in a cohesive theme that is meaningful to you. It is something that you care about; that you feel is a progression. You nurture a career. You direct it. It has purpose. For example, my career has focused on operations, people and culture. It has crossed multiple industries from sporting goods manufacturing to technology to commercial real estate to education. The common theme is operations, people and culture. I didn't plan it this way when I was in my early 20's. Instead, I followed what I was good at and enjoyed. The theme emerged over time.
Someone else's career might be entirely in a single industry spanning multiple roles. Most commonly it builds on a specific skill set: sales, engineering, project management, etc. It doesn't necessarily have to provide you income but is arguably a hobby if it doesn't make you money (this article provides a good visual). Follow these links for more information on creating a career and finding a job.
Understanding the Commercial Real Estate Industry
Commercial real estate is all real estate that is not personal homes including offices, retail centers, industrial/warehouses, apartment buildings, self-storage, biotech laboratories, medical offices, and hotels. It can even include personal homes if they are used to rent to others. Blackstone and other private equity companies have made big acquisitions of pools of single family homes that they rent out.
Real estate is everywhere you look.
Type of Companies
It is important to understand that there are many types of companies in the CRE industry. Here's an overview:
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, leasing and financing 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, Altus.
There are many paths to take when entering the CRE industry. See below for the most common examples.
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, 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): 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): 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): 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): Get ready for fast paced action! Some owners and lenders have a similar internal position called a Transaction Manager. The focus is on getting the purchase or financing of a property closed in a specific time deadline.
A Note on Types of Roles
After each role able, I have used one of three descriptors below. This is an oversimplification, but it can help you understand what your like and are good at.
Heads Down - your generally prefer working on tasks by yourself.
Project Management - you like leading teams.
Sales, Marketing, & Business Development - you prefer working with others most of the day.
An important note: the higher up in a company you get, the more you will need to lead teams. If a leadership role is important to you, focus on developing your project management skills. If we simplify the role of a CEO, it is really a project manager with the added responsibility of setting direction and making tough decisions.
Be a student of yourself. Understand what makes you tick. Determine your strengths and weaknesses. You will be more successful and happier if you leverage this knowledge to find the right fit.
In addition to getting feedback from people who know you well, personality testing can be hugely helpful. See below for examples:
Myers Briggs - this test has been around for a long time. It has 16 personality profiles and maps you to one. As of my test in 2017, I am an ESTJ. A few excerpts from my report: "ESTJs are natural administrators. ESTJs organize projects and people to get things done and focus on getting results in the most efficient way possible. ESTJs are clear and straightforward in their communication." These traits suit me well in a project management role.
Gallup's Clifton Strengths - this helps you better understand your strengths.
Disclaimer: This information is provided to help you better understand commercial real estate. It is based on my experience over 20+ years. There is no guarantee that this information will allow you to be successful. No guarantee is provided as to the accuracy of the information. It is provided for educational purposes only.