Generation Y and Careers in Real Estate Development: Part I

Great career opportunities for members of Generation Y are about to emerge in real estate development. The real estate development industry is not about marketing, sales, appraising, or other similar disciplines. It’s about creating product by converting raw land or prior existing uses into functional residential or commercial properties such as homes, offices, retail and entertainment, resort/hospitality, mixed-use, or industrial projects.

Why are these opportunities emerging? Starting in the late 1980s, the real estate development industry neglected to prepare the next generation of development professionals because:

•      There was a deep recession in the industry through the early 1990s and recruiting stagnated;
•      The industry was slow to recognize the importance of, and adopt, rapidly advancing technology;
•      Those who may have been candidates for the development industry became interested in other industries that were more technologically advanced;
•      The economic recovery in the industry occurred so strongly and grew so rapidly that industry professionals focused on increasing profits and often neglected recruiting and training;

As a result, there currently exists a shortage of well-trained, well-qualified entry-level managers in the real estate development industry. As the industry recovers from the effects of the global recession, there will be rapidly expanding opportunities for competent young professionals.

So, where will the industry find these candidates?  Fortunately, for those lacking on-the-job experience in the industry – and that describes just about anyone in the entry level stage of his or her career – there are several sources for obtaining the requisite background and credentials. Principal among these is the graduate level degree program in real estate development. Many colleges and universities around the United States offer these either as a Master of Business Administration  (MBA), Master of Real Estate Development (MRED), or Master of Science in Real Estate Development (MSRED).

Which program is best? This is a question I’m frequently asked by members of Generation Y. The MBA programs typically offer only a concentration in real estate development as part of the broader general business degree, and, in my experience, do not provide a sufficient breadth and depth of industry-specific training to meet the needs of the industry. MRED or MSRED programs create the best-trained, most qualified human resources for the industry. This is because most of them focus all courses in the curriculum specifically on the industry.

Part II will discuss what a top MRED/MSRED program should offer.