Corporate Real Estate Compensation Keeps Rising
CoreNet Global's latest survey also details how crucial packages are for retention.
Corporate real estate professionals have again seen increases in their compensation, according to a CoreNet Global survey conducted in the third quarter of 2024, together with Ferguson Partners.
A total of 78 percent of participants reported base salary growth in 2024 compared to the previous year, with a median increase of 3.8 percent and an average of 4.8 percent. In addition, some 79 percent of participants anticipate a salary increase in 2025.
About half (51 percent) of companies gave employees an increase in their annual incentive (cash bonus) award payout in 2023 compared to 2022. The median increase was 15 percent. While 21 percent of participants reported a decrease, with the median rate at 18 percent.
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CoreNet’s findings align with Bureau of Labor Statistics data for 2024, NAA Vice President of Research Paula Munger told Commercial Property Executive. BLS showed real estate wage growth consistently higher than the U.S. average and in the top five for wage growth among other sectors throughout the year.
This latest CoreNet survey is based on 107 end-user members representing 99 organizations, some of which are from Fortune 500 companies.
EY, meanwhile, reported that the median CEO salary in the real estate sector is $888,000, slightly above the $880,000 in the general market. It said CEO salaries in the Midwest and West are slightly higher, at $900,000.
Sweetening the deal
Among the top reported perks granted, CoreNet reported, were mobile device/internet reimbursement, tuition reimbursement, on-site fitness/health club memberships, parking/commuting benefits and subsidized meals/cafeteria service.
“As businesses continue to adapt to changing workplace dynamics, it’s clear that corporate real estate professionals are at the forefront of driving innovation and strategic growth,” said Chris Papa, founding partner of Jackson Lucas. “The increasing compensation reflects the industry’s growing recognition of their role in shaping the future of work environments.”
Meanwhile, companies have faced difficulties in the past several years due to hiring and retention challenges, observed Doug Miller, partner & chief research officer, Swift Bunny.
Keys to retention
“It’s obviously difficult for properties to maximize performance when short-staffed, leading to service delivery and customer satisfaction/retention taking a hit,” Miller pointed out. “Because of this, organizations have evaluated their compensation and benefits packages’ competitiveness. Companies must identify changes to make their firms more attractive to current and future employees.”
This shows up in the fact that more people are participating in surveys—as many as 62 percent in Miller’s firm. He mentioned that one survey topic, “Compensation for my job is fair,” has a relatively high correlation with the likelihood the employee stays at the company, and the correlation has increased noticeably in the past several years. Likewise, the topic “The benefits package matches my needs” has a similar correlation and has also increased significantly over several years.
“This simply proves the obvious: Compensation and benefits matter and impact employee engagement and retention,” Miller said.
Other research supports the need to focus on compensation, citing the degree to which employees suffer from a high cost of living and feel financially fragile. For example, the 2024 survey on workplace wellness conducted by EBRI/Greenwald Research validates the importance of compensation and benefits, reporting that half of U.S. workers expressed at least moderate concern about their financial well-being.
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