Real estate attracting graduates

By COLIN TAYLOR


Real estate agency has taken a major step forward with the formation of a long-term career structure for university graduates.

"Traditionally people have drifted into real estate from other careers, but recently we have seen an increasing number of graduates seriously looking at the commercial agency side of the business as a long-term career option," says Mike Bayley, general manager of Bayleys Real Estate.

Bayleys has set up a dedicated real estate agents' career programme in which graduates work for one year in all areas of the commercial real estate business, including: property research, valuation, leasing, sales, property management and body corporate, marketing and office administration.

"The graduates aren't just those with a property degree. We have some who are out of the law, business, commerce and even civil engineering faculties. We need a good mix because we want a broad range of talents available to us," Bayley says.

Vendors and purchasers are more sophisticated now, he says. They demand more information and not just property-specific data.

Once a graduate has seen all aspects of the Bayleys business, they express their preference and seek a position in that chosen area.

"What is interesting is that all our graduates are attracted by the commercial, industrial and retail sides of the market where clients require a more analytical and technical approach. They're not looking at the residential side where buyers and sellers tend to be driven more by emotive factors."

Starting graduates straight from university has also led Bayleys to create a new income structure for them.

"Historically remuneration has been solely based on commission," Bayley says. "But the graduates commence with a base salary, plus an incentive level of commission."

This recognises that individuals coming out of university need to get established and have student loans and other debts to service.

The "mixed-income" basis is for a minimum of one year and up to three years.

A Business Studies graduate from Massey University, Lloyd Budd, is one of the first to embark on the company's new career programme.

Budd was a recipient of the Keystone Trust (formerly the Graeme Bringans Property Education Trust). The trust was founded in 1994 by colleagues of Bringans following his death at 48. Bringans left school at 15 with no qualifications and was outspoken in his belief the industry needed more professionals in its ranks.

Mike Bayley is one of the trustees. Others include: Angus McNaughton, CEO of Kiwi Income Property Trust; Paul Duffy, CEO of the Dominion Group and former general manager of Fletcher Property; Mike Higgins, former president of the New Zealand Property Council; Ann Robertson, National Human Resources Manager for Westfield NZ, Gregory Shanahan, a partner at Minter Ellison and David Kennedy, general manager group operations Sky City Entertainment.

Sponsors include Bell Gully, the ASB Bank, Melview Developments, Colliers Jardine, Kellands Real Estate and Tower Asset Management.

Over the past nine years, the trust has supported 27 students. Recipients are selected by a committee representing the Property Council of NZ, Institute of Architects, NZ Institute of Quantity Surveyors, the Real Estate Institute and NZ Property Institute.

Another Bayleys university graduate is Colin Stewart, who graduated from Auckland University with a civil engineering degree, then worked in construction for five years before joining Bayleys Commercial Sales.

He believes a university education provides "generic problem solving skills", but graduates must still learn their chosen career skills.

"Specific skills are sometimes easier to learn than seeing the big picture of what is required and why it's required. One of the advantages of a university career is that it teaches you the 'know-whys' as opposed to the 'know-hows'."

Michael Grainger graduated Bachelor of Property from Auckland University and worked in the valuation industry for three years.

"Since joining Bayleys I have found that much of my university training does apply to day-to-day business. A university education requires students to develop problem solving skills and to assimilate vast amounts of information with specific answers and solutions expected as the end result."

Bayleys and other real estate companies also assist university students with a work placement scheme where they work with key individuals for several days to get an appreciation of the business.

The major real estate companies have a working relationship with Deborah Levy, senior lecturer in the Property Department at the University of Auckland and director of industry liaison. But they don't have direct input into the curricula of property, business or other degrees but do feel graduates get a good overview of the industry.

The importance of developing an educated team is indicated by the fact that Bayleys employs in-house trainers who run week-long induction programmes for new employees.

Bayley says that from his company's viewpoint, taking on graduates "gives us the opportunity to train agents from scratch in the company's philosophy, branding, methods and policies".

Bayleys expects the graduate career programme will equip the company with agents who view their positions as secure, life-long careers, and who can offer better advice to clients, enabling them in turn to make better decisions.