​In recent years, there has been a noticeable transformation in real estate financial advisory services. The rise of boutique real estate financial advisory firms - smaller, specialised companies - are gaining traction and reshaping the sector significantly.

In this piece, we speak with Balaji Nagabhushan, Founder and Partner at boutique Real Estate Advisory firm, Conduit Real Estate, and delve into the reasons behind this shift, how boutique organisations differ from large-scale firms, what employees can expect from working at a boutique, and explore the implications of this new breed of advisory service for the real estate industry.

What makes a real estate advisory firm boutique?

Boutique firms tend to be more specialised and personalised in their approach with a focus on a ‘holistic approach’ with clients and the ‘ground-up development’ of their organisations, according to Balaji. They’re ‘independent in the market, not attached to an agency or institution’, with this lower volume, specialised nature meaning that they can focus on a particular asset class, locale or area of financial advisory, providing a hyper-detailed understanding of niche areas and the market trends that are apparent within them, which some larger firms are unable to offer.

Why have boutique advisories seen such growth?

Evolving client preferences and technological advancements have made alternatives more appealing and possible. Whilst these boutique firms may face challenges in establishing themselves amidst larger competitors, their specialised focus, personalised approach, and ability to pivot to the needs of client and the market because of their smaller size, offer a point of difference. The opportunity for organisations to partner directly with highly experienced individuals working at boutiques across different facets of their business is becoming increasingly popular.

This is something that’s already happening overseas Balaji continues, saying that ‘In the US market, 70-80% of real estate organisations are working with advisory firms, whereas in the UK and Europe, this figure is more around 20-30%, and so there’s a lot of opportunity still for further market penetration and growth.’

What impact are boutiques having on the sector?

Larger-scale firms will always have their place when it comes to financial advice. As Balaji says, ‘there are certain transactions that are better suited to larger players…but there is space for everyone’. For example, he says that ‘a lot of the boutiques have focused on the family office share of the market, whereas we have focused on the institutional segment, given our pre-existing relationships’. Either way, we can see that this development of boutique firms is having an overwhelmingly positive effect on the market. It increases competition which in turn raises standards across all advisories, causing disruption and therefore innovation from traditional models of real estate financial advisory, resulting in a better quality of service to the sector.

How does working at a boutique advisory differ from a large-scale firm?

Conduit Real Estate is a boutique financial advisory firm set up by Balaji and Jonathan Jay, specialising in institutional-level transactions, set up because of the opportunity available in the advisory market. Like other boutiques, they put a lot of focus on the relationships they develop with clients, so there’s often more of a client-facing aspect, across seniority, associated with boutiques and the personal touch that they give. Boutique firms have a roll-your-sleeves-up attitude; the ability to be versatile in your work, moving from one project to the next fluidly, and remaining dynamic, will result in success.

How can I find out more about working at a boutique advisory firm?

Large, market-leading advisories will always have an incredible pull with candidates because of their plethora of opportunities for in-company development and exposure to large names in the sector.

Depending on your career preferences, experience, and skillset though, working in a boutique advisory could be an excellent decision as part of your career development. Smaller teams at boutiques mean real responsibility where you’ll get full transaction exposure and be part of a culture that’s demanding, but incredibly rewarding in the output that you can see, the potential for development in your career, and also in the remuneration you’ll receive working at them.

Get in touch with us via the below for a confidential discussion about your advisory career, whether you’re looking for a new role now, or want to understand more about the market and future roles at either boutique or large-scale firms.

Ciara Murphy - Private Equity, Capital Markets & Investment Banking

Email: cmurphy@cobaltrecruitment.com

Phone: (+44)20 7478 2538

Ciarán Nicholl - Private Equity, Capital Markets & Investment Banking

Email: cnicholl@cobaltrecruitment.com

Phone: (+44)20 7478 2529