Within the context of this guide, real estate functions as a career categorization, as well as a type of asset. This section covers careers specific to real estate. As a type of asset, real estate is involved in all different areas of the financial services industry and focus can be found as a subdivision of many careers, for example, as a group within the Investment Banking Division of a bank.

Commercial Real Estate

Careers in Commercial Real Estate (CRE) can be responsible for raising capital, screening investment opportunities, acquiring/developing properties, managing properties and selling properties to generate returns for investors

Acquisitions in real estate involve purchasing property for investment and development through due diligence, negotiation, and closing while asset management involves value maximization through budgeting, tenant relations, and maintenance

General Real Estate Investment Sectors

• Traditional: Office, Multifamily, Retail, Industrial, Hotel, Single Family
• Non-Traditional: Senior Living, Self-Storage, Theme Parks, Cell Towers, Forest, Data Centers, PropTech, Manufactured Housing, Life Sciences

Investment Strategies

• Core: Fully-leased, stabilized, properties
• Core+: Properties that are stable but have potential for increased NOI (Net Operating Income)
• Value-Add: Properties that require repositioning or moderate redevelopment
• Opportunistic: Properties that require significant redevelopment or developing buildings “ground-up”, often with higher risk and potential returns

Recruiting

Candidates pursuing careers in CRE should be well-versed in real estate valuation methods, such as Capitalization Rate (Cap Rate), Discounted Cash Flow (DCF) analysis, Replacement Value, and Comparative Market Analysis (Comparables). They should also have knowledge of recent real estate deals and an understanding of the specific investment sectors they are interested in.

Examples