4 Underrated Ways To Prepare For a Real Estate Interview

When preparing for a real estate interview, a lot of people focus most on being able to talk through their background and getting ready for potential technical questions, but there are a few things I find are very commonly overlooked when it comes to this process.

These things can put you significantly ahead of other candidates with just a few hours of prep, and these are well worth your time if you’re serious about a role.

So to make sure you’re coming into these conversations ready to put your best foot forward, this post walks through four things to do before a real estate interview, and how each of these can help you stand out from the competition.

Watch the Full Video Here:

#1: Research the Markets the Company Operates In

The first thing you’ll want to research before heading into a real estate interview is the current state of the markets the company is active within.

This goes for both property types and geographic markets, so if the company you’re interviewing with buys industrial properties throughout the Northeast United States, you’ll want to understand what’s happening both in the industrial sector and also the major markets that exist within the area.

Where to Find This Information

Major brokerage firms like CBRE, Cushman & Wakefield, and Newmark often publish free quarterly reports on their websites that can give you a great, high-level overview of what’s happening nationally in a given sector, and also specifically in a major metropolitan area.

A quick Google search for something like “Industrial Market Report,” followed by the name of a major city and the most recent completed quarter, should give you several results to choose from when doing this research. These reports usually include things like:

• Vacancy levels
• Rent growth over time
• Incoming supply information

All of these factors can impact valuations and company strategy, so going into an interview knowing the general trajectory of where things are headed can put you far ahead of other candidates who haven’t taken the time to do this.

Identifying a Company’s Focus

If you’re unsure of where a company is active, most firms will have a portfolio page or a strategy page on their website that will be a great resource to sift through. This page often highlights the properties the company owns or the specific types of properties they’re targeting, including size, location, and/or general business plan.

All of these things can help you more clearly answer questions related to why you’re interested in this specific company, or what types of opportunities you see for the firm going forward. And by just taking a few hours to get a high-level overview of commercial real estate performance in the markets the company is active within, you’ll usually be setting yourself up to make a good impression.

#2: Research Recent Acquisition and Capital Raising Activity

The next thing you’ll want to do before heading into an interview is more related to the company itself (rather than property type or market performance), and this is researching acquisition and capital raising activity the company has recently done.

How to Find This Information

A lot of firms will have a “Press” or “News” page on their website, which can make this information really easy to find. But even if that’s not the case, running a simple Google search for the company and using the “News” filter will help you find any recently published articles the company is featured in.

Websites like Globe Street, Bisnow, PR Newswire, and Connect CRE also tend to cover notable transactions in this industry, including both major acquisitions and capital raises.

If the company you’re interviewing with is publicly traded, you may also be able to get a lot of insight into the firm’s recent deal flow and overall strategy by listening to its most recent earnings call, and this will also be freely available through the company’s website.

The goal should be to come into the interview well-informed about the firm itself and some of the company’s most notable recent achievements, which can help you answer questions and also give you talking points when discussing your interest in the position.

#3: Understand Current Interest Rate Activity

Beyond getting an understanding of product types, geographic markets, and company activity, the next thing I’d recommend doing to prepare is researching interest rate activity, specifically the rates that directly impact commercial real estate.

In the US, these primarily boil down to:

• The 1-month SOFR
• The 5-year, 7-year, and 10-year US Treasury

These are typically used as index rates to price both floating and fixed-rate loans, and major movements in any of these can have material impacts on valuations within the real estate market.

In addition to current interest rates, you’ll also want to research both where these rates have been over the last 12-24 months, along with where these rates are projected to go in both the short and the long term.

Recommended Resources

• Chatham Financial – One of the most commonly used resources by commercial real estate investors to find this information
• Pensford – Another great resource for interest rate projections
• Federal Reserve Bank of St. Louis – Has very detailed information for historical data

Especially during times when interest rates are volatile, these are often going to be at the top of an interviewer’s mind. And if you’re asked questions about where you believe interest rates might go in the future or how recent changes in rates are affecting the industry overall, going in knowing this information will make sure you’re prepared to talk through these topics.

#4: Prepare Your Own List of Questions

The last thing I want to mention here is often overlooked by candidates, but can make a huge difference during the interview process, and this is making a list of questions you want to ask during the conversation.

If you’ve done the things we’ve talked about already in this post, this list should be relatively easy to put together. The questions you ask say a lot about the way you’ve prepared for a conversation, and also how much effort you’re putting into the interview process as a whole.

Example Questions Based on Your Research

If you’re interviewing for a role at a company focused on acquiring multifamily properties in the Southwest and many of the company’s target markets are seeing an uptick in new supply, you might ask a question related to how the firm plans to address this change and what its strategy is for existing portfolio properties.

And if you’re interviewing for a role with a lender and interest rates are projected to fall in the near future, you might ask a question related to the impact of these falling rates on pricing and deal terms, and what their view on these changes is.

Things like significant capital raises, major acquisitions, or key new hires of senior personnel can also have major impacts on the way a company operates, so asking questions related to any of these topics can both make you look good and also give you insights into how these things might affect the culture of the company overall.

Even though you’re the one being interviewed, companies will almost always save time for candidates to ask their own questions. By coming prepared to do this, you have the opportunity to make it clear that you closely follow the industry (even if you’re not already working in commercial real estate), and you’re being intentional about your applications and the job search overall.

Stand Out from the Competition

If you want more commercial real estate interview or job search strategies, or you want to make sure you’re ready for an Excel modeling exam that might be given to you during the interview process, make sure to check out our all-in-one membership training platform, Break Into CRE Academy.

A membership to the Academy will give you instant access to over 120 hours of video training on real estate financial modeling and analysis, you’ll get access to hundreds of practice Excel interview exam questions, sample acquisition case studies, and you’ll also get access to the Break Into CRE Analyst Certification Exam, which covers topics like real estate pro forma and development modeling, commercial real estate lease modeling, equity waterfall modeling, and many other real estate financial analysis concepts that will help you prove to employers that you have what it takes to tackle the responsibilities of an analyst or associate at a top real estate firm.