More than three times as many commercial real estate firms say they plan to increase hiring in 2025 than those that will decrease staff, according to a new Ferguson Partners survey.
The talent management and strategic advisory firm added that executive hiring increased “substantially” during the last two months of 2024, its latest real estate compensation and hiring pulse survey showed.
These results came from Ferguson’s data collection between October and November last year regarding 170 public and private real estate companies.
The results indicated modest salary increases of between 3.2 percent and 3.4 percent across employee levels and limited changes to bonus pools. Some 80 percent of public companies expect to raise salaries, while 54 percent expect to increase salaries for executive management. Mid- to junior-level positions will receive the most increases.
Those promoted are anticipated to average an 8.7 percent boost in salary.
The office and industrial sectors are forecast to perform worst in hiring and salary increases among all sectors.
‘Undeniable resilience’ in hiring market
“Today’s hiring market is robust, and its resilience is undeniable,” Lisa Flicker, senior managing partner, Jackson Lucas, told Commercial Property Executive.
“We are seeing confidence and certainty in the market that was truly missing last year,” Flicker said. She added that the boost has been driven largely by the relief that the election is over, and investors feel the shaky ground has steadied. Combined with a gangbuster December jobs report and the favorable dynamics across other sectors, real estate is poised for a great 2025.
“Our real estate executive talent advisory practice sees strong hiring plans in particular realms. Although borrowing rates remain stubbornly high, sellers have adjusted their expectations, and demand for top development and acquisition leaders has made a comeback.”
While hiring for C-suite and leadership roles continues to be extremely selective, Flicker sees many opportunities in investments and operations opening. “Overall, there’s a very positive outlook for the hiring market, and the story just keeps getting better.”
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For example, Open Impact Real Estate said it plans to expand its team by 15 percent this year.
Open Impact Real Estate uses a salary bonus model in an otherwise commission-driven industry “to build a diverse team driven by excellence and passion for impact,” Stephen Powers, its co-founder, told CPE.
Crexi continues to invest in research and development to offer customers high-value solutions.
“We are hiring engineers to drive innovation and enhance our product offerings,” said Suzanne Harrison, head of talent acquisition at Crexi.
Crexi is hiring account executives to help scale its customer base and grow in new markets.
“With more account executives, we can increase our reach, build stronger customer relationships, and ensure sustainable growth,” Harrison added.
Blanca Real Estate has upped its hiring to bring more diversity to its service lines.
“We offer competitive salaries and compensation packages aligned with experience and performance,” Tere Blanca, founder & CEO of Blanca Real Estate, told CPE.
“We also offer attractive benefits, bonus and incentives programs for employees and brokers,” Blanca said. “I take great pride in the team that we have built and recognize that everyone plays a role in our collective success and therefore believe in rewarding our team both financially and through career growth opportunities.”
Real estate amenity supplier WithMe said it is increasing its workforce by 30 percent to match its growing demand, offering a 5 percent average compensation increase to reflect CPI growth, according to its CEO, Jonathan Treble.