Generation Y and Careers in Real Estate Development: Part II

Previously, I posted “Generation Y and Careers in Real Estate Development: Part I”. In it, I set out the reasons why I believe career opportunities are emerging for members of Generation Y. I also suggested that the most successful candidates for these careers will need to acquire a background and experience in the fundamentals of real estate development. Now, I want to offer observations on where that background and experience may be obtained.

A large number of universities in the United States, as well as abroad, have instituted programs in real estate development, some at the undergraduate level and, more importantly, at the graduate level. I previously discussed the principal differences between the Master of Business Administration (MBA), Master of Real Estate Development (MRED), and Master of Science in Real Estate Development (MSRED) degrees. The conclusion is that the MRED or MSRED is the preferable degree because these all courses in the curriculum focus specifically on real estate development, not just a few courses on the subject.

There are a number of MRED and MSRED programs offered, and they are not equal, regardless of tuition levels or the overall prestige of the university in other areas and disciplines.

Why would I know about such things? I have invested more than 30 years in my own successful career in real estate development. I also earned a doctoral degree and founded the MSRED program in a graduate school of business at a university in Florida, a hotbed of real estate development.

When I was asked to start that program, I thought carefully about two things:

·        Knowing what I know at this point in my career, what would I want from a program if I were starting my career in development today?

·        What do I look for in candidates I hire for positions in the industry today?

The answer was easy. What we need most in our entry-level management hires is a full understanding of the overall development process:

·        Who are the players?

·        What do they (or should they) do?

·        How do their actions interface with each other?

·        What are the phases of development?

·        How do they interconnect?

With these thoughts in mind, a top real estate development program will offer the following:

·        All courses will pertain directly to this industry. If you’re not sure you want to stake your career in the real estate development industry, get an MBA;

·        The courses in the curriculum will follow the chronological order of the real estate development process. The process makes a great deal more sense when taught this way;

·        Ideally, the courses are taught by practitioners from the industry. This can be troubling to academics because:

o   The accrediting bodies have established rules that are anti-practitioner; and

o    Some academics are disdainful of those who have actually “been there, done that”;

·        Practitioners from the industry should be a fixture in the classrooms as visiting lecturers, panelists, mentors, and more;

·        Regardless of his or her academic achievements, the program’s director ought to have spent years as a practitioner in the industry. How do you know what the industry needs if you’ve never spent significant time in it? Or, phrased differently, how do you know what your students will need to be successful in the industry?

·        An industry advisory committee consisting of leading practitioners from the industry – local, regional, and national, should guide the program. How else do you keep the program constantly in tune with emerging trends and needs in the industry?

·         The program should be tightly aligned with the leading industry associations – ULI-the Urban Land Institute, NAIOP-the National Association of Industrial and Office Properties, and ICSC-the International Council of Shopping Centers. This is where the student begins the most important activity of his or her career – networking.

So, all things considered, of the many dozens of graduate level programs on real estate development, how many follow these guidelines? While many will claim to identify with them, I believe the actual number is less than a dozen, perhaps substantially less. Why? It has to do with the perceived restrictions of the accrediting agencies such as AACSB, SACS and others, although there can be exceptions to these restrictions. It also has to do with academia’s view of the real world of industry. Not exactly anathema, but certainly populated by beings of lesser intelligence.

This puts the burden on the prospective student to perform due diligence in appraising a program and to ask the right questions of the right people. Call some members of the program’s industry advisory committee. Ask them:

·        Would they enroll their children in the program;

·        Would they enroll in it if they were beginning their own career;

·        Do they spend much time in the classroom;

·        Have they ever mentored students in the program;

·        Have they hired graduates of the program, and if so, were they satisfied with the skill sets they gained in the program;

·        Do their companies have an internship program for students at the school.

It also is a good idea to speak with recent graduates of the program to learn what they liked, or didn’t, about the program, and whether they believe it helped them land the job they really wanted. 

Good luck!