Good Morning/Afternoon!

Dropping the second half of the 2024 salary survey today. A few takeaways: 1) We had just over 250 respondents in 2024, this is a pretty small sample size compared to the ~700 a couple years ago; 2) ~10% came from investment sales or brokerage, we did our best to scrub full commission roles out since they skew numbers; 3) We’ve also been looking at things like fund size to see if there is a better correlation to comp. Notes are included below. For Part III we will dig into some of the international data and the roles covered by non-buyside groups

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Capital Markets

Salary Survey Part II

Asset Management

Notes

• AM vs. Acquisitions

  Based on comp sets from this year and prior years, the comp for Asset Management is much more linear than Acquisitions or your typical cradle-to-grave PE role. Base + Bonus tend to rise steadily with seniority

• Carry/Promote on Deals (Acquisitions Mostly)

  For the most part this is limited to acquisitions and PE roles and tends to vary greatly but on average is 0.5% - 5% of each deal, with some being able to buy in to deals. Most at the VP level reported 2.0%-2.5%. Others at larger funds reported getting restricted stock units, meaning there is a vesting period and was included in their bonus package

• Bonus Total

  Many included the value of their carry or stock grants as part of their total bonus number. Keep in mind

• Fund Size vs. Comp

  We looked at total comp vs. total AUM and didn’t find a significant trend. This is likely due to multiple factors including fund performance in 2023, asset class, and total years of experience. Mega funds with AUM over $5bn+ did show higher salaries but the sample size was too limited to show a solid trend at every position

• Gender Pay:

  No significant differences in gender pay were found. This is mostly due to a lack of data. For most positions within acquisitions, there was only 1 female employee comp for every 10-20 male employee comp submissions. Women made up only 6% of all survey respondents. The key takeaway is that commercial real estate is male-dominated field. Just a bunch of dudes in Argus…

• 2023 Layoffs:

  Roughly 1/3rd of those who responded to the survey reported their company having layoffs in 2023. Of those who reported layoffs some included comments stating low comp, or having to cover both AM and acquisitions. Others reported bonuses being reflected as raises for 2024. Layoffs were reported across all CRE job functions (Acquisitions, AM, Investment Sales, Appraisal, Corp Fin, Investment Banking, etc.)

Deals Deals Deals

Sales

• Office: Munich RE acquires the 760K SF office at 320 Park Ave in New York, NY for $500mm from Mutual of America. Munich RE previously owned a 25% interest, the total value of the asset is estimated at $700mm

• Industrial: Bridge Investment Group acquires a 42K SF Frito-Lay distribution center in Brooklyn, NY for $105mm from PepsiCo

Debt

• Multifamily: Terra and One Thousand Group secure a $285mm construction loan for a condo development in Miami, FL

• Multifamily: Nasser Freres secures a $245mm loan from TYKO Capital to develop a 28-story, 622-unit multifamily tower in Jersey City, NJ

• Production Studios: Gateway Studios & Production Centers secures a $35mm in C-PACE financing from PACE Lon Group for its planned 32-acre production campus in St. Louis, MO

Distress

• Hospitality: Northwind Group to take former Ace Hotel in Manhattan, NY through foreclosure

• Office: The Republic of Poland acquires a 60K SF office asset in D.C. from Johns Hopkins University for half its assessed value

Capital Raising

• Multifamily: Bluerock Value Exchange announced the launch of its 1031 exchange/DST offering BR Amira, DST seeking to raise $66mm. The DST consists of a multifamily asset in Tampa, FL with a non-recourse Fannie Mae loan at 4.81%

Meme Summary

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