Interview with David Ferber: Pursuing a Successful Career in Commercial Real Estate

#1 – What led you to pursue a career in commercial real estate, and how did you get started in multifamily investment sales?

I was initially working in real estate tax at a Big 4 accounting firm, but I realized that I wanted to be on the transactional side of the business. The excitement of being involved in deals, meeting people, and hearing their stories drew me in. So, I made the decision to leave my tax job and went straight into brokerage. Another major reason I decided to switch career paths was the level of growth I could attain in brokerage. To put it into perspective, it can take about 15 years to make Partner in accounting, but you can get up to that same level, in an income perspective, within two and a half years in brokerage. To sum it up, brokerage was enticing because it was a career where you could visibly see that the work you put in is what you get out.

My initial focus when entering commercial real estate was not multifamily; I was actually about to go into office leasing before COVID-19 started, so I think I got really lucky. Instead of office leasing, I joined a group that specialized in multifamily, which ended up being my chosen specialty in the end.

#2 – What led you to Matthews™, and what do you think sets Matthews apart from others in the industry?

One of the main factors that attracted me to Matthews™ was the advanced technology. Technology has won me about two listings since I joined just four months ago. The landing pages, click analytics, and automated email blasts have been mind-blowing. The ability to track clicks and receive real-time notifications has significantly accelerated my ability to secure listings.

#3 – What trends are you seeing in Hudson County multifamily in H2 2023?

In H2 2023, we’ve seen a 37% decline in transaction volume and a 35% decrease in prices. However, despite these declines, there is still substantial rent growth, with an increase of over 15%+ every year. It’s likely that the prices will continue to go down, possibly reaching a peak decline of 40% before stabilizing.

#4 – How do you leverage your status as a licensed CPA in commercial real estate?

As a licensed CPA, I bring a strong focus on numbers and financial analysis to my work. It provides me with a lot of credibility, especially when underwriting deals. People trust me more because of my CPA title. I was a CPA for three years, and the numerical aspect of the business is something I genuinely enjoy. It has certainly helped me throughout my career, establishing trust and credibility with clients who know that I understand what I’m talking about.

#5 – What is your biggest piece of advice for agents just starting out their commercial real estate careers?

My biggest piece of advice would be to follow every little thing you have been trained to do. Commercial real estate is a relatively simple business, but it can be challenging at times. Consistency is key, so focus on cold calls, meetings, and proposals consistently for at least two years. This dedicated effort makes it almost impossible not to succeed. I would also recommend specializing in a particular product type or area and becoming the most knowledgeable person in that niche. You will have people calling you and start getting more deals and referrals just because you are the go-to person in that product type.

#6 – How is the New York/New Jersey CRE market performing, specifically in the multifamily sector?

The multifamily sector, in general, remains one of the hottest product types. There is still a considerable amount of capital and investor interest in this sector. Demand for multifamily properties remains strong, and if a deal is priced well, it can still attract plenty of interest and activity. From personal experience, when a deal is priced fairly at market value, I will still get 10- to 15 offers within the first two weeks, even in today’s volatile environment.

#7 – What predictions do you have for the multifamily sector in the next 5 to 10 years?

In the short term, I anticipate that the market will continue to fall, experience pricing declines, and decrease transaction volume until the end of 2023. 2024 will likely see a stabilization without significant movement, as interest rates are expected to remain relatively stable. By 2025, we should start to see an improvement in the market, with a gradual recovery and a transaction boom in the middle of 2025. As conditions improve, people will likely begin pouring their money back into the multifamily sector.

#8 – What are your top three multifamily trends to watch for the remainder of 2023?

Firstly, keep an eye on rent growth. It has been consistently strong and is expected to continue growing. Secondly, it will be interesting to see if pricing adjusts to meet the market demand. If pricing comes down and becomes more realistic, transaction volume will really pick up again. Lastly, there is a potential increase in interest rates, as even a 25 basis point rise can impact investment decisions.

#9 – What is your top tip to build and maintain relationships with clients?

Staying top of mind is essential. Always strive to be at the forefront of your clients’ minds and consistently add value to their experience. Avoid focusing solely on selling and instead provide them with valuable information, such as rental data and market insights. Be a useful resource without being a pushy person. Remember, the decision to sell lies with the client; when they’re ready, they will reach out to you if you were able to leave a lasting impact on them.

#10 – Can you share a success story from your career in CRE, and what lessons did you learn from that experience?

One valuable lesson I’ve learned is that success is often just around the corner when you feel like you’re at the bottom. Consistency is key in this industry, especially within your first two years in the industry. Some of my most notable transactions have happened during challenging market conditions. During these times, I had to get creative and explore alternative solutions to close deals. For instance, I successfully closed an owner-financing deal by thinking outside the box. This experience taught me the importance of adaptability and finding unique solutions to achieve success.