First
In-Depth Assessment of Commercial Real Estate Job Market Gives Cause for
Celebration as Well as Concern for the Economy
War for
Talent Rages in Superheated Market, According to SelectLeaders Job Barometer
NEW YORK
CITY, May 21 -
Results from the first SelectLeaders Job Barometer report, compiled by
SelectLeaders, an online job board for the commercial real estate industry, in
conjunction with Cornell University's Program in Real Estate, forecast solid
hiring and compensation growth, but also reveal worrisome trends.
The
findings were reported by Anthony J. LoPinto, CEO of Equinox Partners, a
retained executive search firm, and founder of SelectLeaders, and Dr. David
Funk, director of the Cornell University Program in Real Estate.
"Hiring
and compensation provide a barometer for trends in the commercial real estate
industry, as well as for the U.S. economic outlook," Mr. LoPinto says.
Among the
notable findings of the SelectLeaders Job Barometer are:
*
Job postings
for the commercial real estate industry have soared by 35 percent during the
first quarter of 2007.
*
66 percent of
senior executives expect compensation to increase in the next six months, and
over 60 percent of industry employers expect to increase hiring over the same
period.
*
The Southeast
region, led by the Atlanta and Charlotte markets, had the fastest job growth of
any region, experiencing a 60 percent increase in job postings in the first
quarter, and, surprisingly, the Midwest region, led by the Chicago market,
experienced a 43 percent increase in job postings, making it second in job
growth nationally.
*
New York and California are the hottest
areas for real estate finance jobs, but New York attracts twice as many
applicants as California, which has led to a talent shortage on the West
Coast.
*
Despite the
fact that demand is growing for asset and property managers, the majority of
job candidates seek the highly desirable "deal-making" positions that involve
acquisitions, development, capital raising and investment banking.
"Candidates
should pay close attention to regional and sector opportunities," advises Dr.
Funk. "If the candidates are willing to pursue prospects in other states and
sectors, they will broaden their options as well as their resumes, and with
multi-sector jobs accounting for 46 percent of all postings nationwide,
cross-sector experience makes a candidate extremely appealing."
According
to Mr. LoPinto, there are several reasons why the industry is currently
experiencing a shortage of talent. "One of the major reasons is 'The Brain
Drain,' or lack of up-and-coming talent caused by few entering the real estate
industry during the bust of the 90's, coupled with the baby boomers exiting
the business and heading to the beach. Also, there has been an enormous influx
of capital into real estate, fueling tremendous growth, and a corresponding
demand for talent."
Dr. Funk
adds, "With more companies going public, and greater institutionalization in
the industry, the bar has been raised on the caliber and qualifications for
real estate job candidates."
"Notwithstanding
the residential sector's less optimistic viewpoint, which the study concludes
is sector-specific, the industry is quite optimistic," observes Mr. LoPinto.
"The
question remains as to whether the hiring and compensation bubble will get so
big that it will burst, or if the current optimism is indicative of a lot more
runway in the current economy," notes Dr. Funk.
About
The SelectLeaders Job Barometer
The
SelectLeaders Job Barometer utilized data collected from three sources: a
comprehensive sample from 8 primary job boards of all online job postings for
professional commercial real estate positions, surveys among senior C-Suite and
middle management in commercial real estate companies, and 74,853 resumes from
job applicants submitted on the SelectLeaders site, as well as the
SelectLeaders Job Network, comprising 11 real estate professional organization
career centers.
To view
the SelectLeaders Job Barometer, please visit www.selectleaders.com.
About
SelectLeaders
SelectLeaders
is the leading real estate jobsite for professionals. Association partners in
the SelectLeaders Job Network include Building Owners & Managers
Association (BOMA), Certified Commercial Investment Member Institute (CCIM),
Commercial Mortgage Securities Association (CMBS), National Association of
Industrial & Office Properties (NAIOP), National Association of Real Estate
Investment Trusts (NAREIT), National Multi Housing Council (NMHC), Pension Real
Estate Association (PREA), The Royal Institute of Chartered Surveyors (RICS),
Society of Industrial and Office Realtors (SIOR), and Urban Land Institute
(ULI). GlobeSt.com, the real estate industry's premier online news site, is
also a network partner. For more information, visit www.SelectLeaders.com.
About Cornell University Program in Real Estate
Cornell's
Program in Real Estate is home to the Masters of Professional Studies in Real
Estate degree, a two-year comprehensive, graduate-level curriculum that
educates the next generation of real estate industry leaders. Cornell is also
home to the Cornell Real Estate Council, an extensive network of over 1,100
real estate industry leaders, as well as the Cornell Real Estate Review, unique
as a student-edited and managed real estate journal serving the real estate
industry. To learn more about the Cornell Program in Real Estate, visit
www.realestate.cornell.edu.
About Equinox Partners
Equinox
Partners, a retained executive search firm, is distinguished by its exclusive
focus on the real estate industry and its industry thought leadership.
The
Equinox team combines deep real estate experience with a proven track record in
recruiting across all sectors.
Equinox is
the sponsor of the inaugural edition of this report.
