The commercial real estate industry is facing an unprecedented national hiring crunch. A recent survey estimated that 60% to 70% of commercial real estate companies are facing a talent shortage. Although this process was accelerated by the pandemic, there are several other features contributing to this shortage of top talent.
The commercial real estate industry is an industry with an aging workforce. Approximately 44% of people employed in the commercial real estate industry are older than 50. Other industries average between 25% and 30% of workers in the same demographic. This creates a bottleneck for advancement, especially for mid-career professionals. After the Great Recession, many young professionals did not enter the commercial real estate industry. Their choices of other industries helped further shrink the talent pool. Technological changes have eliminated many of the roles that entry-level employees once filled such as Research Associates and Tenant Engagement Associates. These roles used to provide training and industry knowledge for young employees, but they are no longer necessary in 2021.
Many roles within the commercial real estate industry did not provide competitive salaries before this year. For more than 10 years, many roles had little salary growth. This was especially true for non-brokerage roles within firms such as marketing, due diligence and accounting jobs. Salaries for many of these jobs have spiked in recent months as employers are competing to find and hire talented professionals. The salary growth is impacting people in the field as well. Salaries for Maintenance Technicians and Maintenance Directors have jumped dramatically over the last few months.
As this talent shortage has become more acute, the rate of burnout for front-line workers is increasing. Many owners and management companies have been struggling to find and hire property managers and maintenance staff for years. These roles require a substantial amount of juggling, problem solving and customer service. Like in many other industries, these employees are getting burned out by their workload in 2021. Many employees are deciding to retire or leave the industry, which only increases the burnout felt by the employees at their firms.
The recruiters at Real Estate Executive Search are happy to help you find and hire great new talent for your firm. Contact us to learn more about finding new talented employees and our hiring guarantees.