Industry Insights Archives - Building Careers

Upskilling: What Is It and How It Can Help You

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Upskilling is the process of adding new competencies to an existing skill set. Employers may upskill staff through corporate training programs in order to gain a more proficient workforce. Workers may upskill themselves via continuing education, certification, and private training.

How To Upskill

Upskilling builds on your current proficiencies through training, education, or on-the-job learning. Unlike reskilling, which involves learning an entirely new skill set, upskilling adds to the knowledge you already possess.

Major employers including Walmart, Verizon, and Marriott make heavy investments in upskilling and reskilling programs. Many employer-sponsored programs focus on hard skills like coding, cloud computing, and digital marketing. But soft skills are also in demand—Verizon’s Skill Forward program focuses on communication and teamwork, as well as technical skills. In a ZipRecruiter survey, 93% of employers said that soft skills play a critical role in their hiring decisions.

You can also upskill yourself on your own, taking continuing education classes, participating in internships, or completing a certification. Upskilling can help you become better at your job, earn a promotion, or adapt to new challenges in your industry. It can also help you future-proof your career!

Rapidly evolving industries mean that even workers who stay in their current jobs will need to add to their skill sets in order to stay current.

Upskilling Example

Let’s say that you’re a software developer. You have a bachelor’s degree in computer and information technology and several years of experience designing and developing software to suit users’ needs.

You like your job, which allows you to use your creativity and problem-solving skills to help design new solutions to challenging issues. But your ultimate career goal is to become a chief technology officer, which may require you to earn an MBA and gain experience as a computer and information systems manager.

Sustainable Building Design Trends Shaping the Future of CRE

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In today’s rapidly evolving world, new, sustainable building design trends are reshaping CRE. These construction methods and sustainable building techniques are rising in popularity and taking center stage in the commercial real estate (CRE) industry.

CRE professionals want to stay ahead of the curve and fully understand the emerging trends that are shaping the future of sustainable buildings and CRE. And it actually pays to stay informed about these industry developments. So, let’s delve into the exciting innovations revolutionizing the CRE landscape and how to better prepare for these trends.

Net-Zero Energy Buildings

One of the most prominent trends in sustainable building design is the rise of net-zero energy buildings. These architectural marvels generate as much energy as they consume, resulting in a minimal carbon footprint.

With advancements in renewable energy sources like solar panels and geothermal systems, net-zero buildings are becoming increasingly feasible and cost-effective. They not only reduce environmental impact but also lead to substantial energy savings for building owners, making them highly attractive from both ecological and economic standpoints.

One building that perfectly demonstrates this sustainable building design trend is The Edge in Amsterdam. This structure is known as the world’s most sustainable office building and incorporates innovative technologies such as solar panels, rainwater harvesting, and intelligent lighting systems to achieve net-zero energy consumption.

Green Roofs

Lately, green roofs have transformed the concrete jungle into urban oases. These eco-friendly rooftop gardens not only provide aesthetic appeal, but also offer a host of other environmental benefits. Green roofs improve air quality, reduce stormwater runoff, enhance insulation, and mitigate the urban heat island effect. And even more exciting, they create inviting spaces for relaxation and socialization, boosting the overall well-being of building occupants.

For example, the Salesforce Tower in San Francisco boasts a stunning green roof that spans an impressive 5.4 acres, contributing to the city’s commitment to sustainability while providing a tranquil retreat for employees. That’s over five acres of growing space crowning just one office building!

Smart Building Technologies

With the advent of the Internet of Things (IoT), smart building technologies are revolutionizing the way commercial properties operate. Part of this move toward sustainable building design trends is the rise of intelligent buildings.

From energy management systems and occupancy sensors to automated climate control and intelligent lighting, these technologies optimize resource utilization, enhance occupant comfort, and streamline building maintenance. By collecting and analyzing data in real-time, smart buildings provide valuable insights for efficient decision-making, leading to significant cost savings and environmental benefits.

Again, The Edge in Amsterdam showcases this principle of smart building, utilizing an array of sensors to monitor and adjust lighting, temperature, and ventilation in real-time, creating a personalized and energy-efficient workspace for its occupants.

Circular Economy Principles

Embracing circular economy principles is another of these emerging sustainable building design trends. Rather than following the traditional linear model of “take-make-dispose,” the circular economy promotes the reuse, recycling, and repurposing of materials.

In other words, buildings designed with circularity in mind are constructed using renewable or recycled materials, incorporating modular and construction techniques that allow for easy disassembly and reconfiguration. This approach not only reduces waste and minimizes resource consumption, but actually fosters a more sustainable and resilient built environment.

The Reversible Experience Center in Eindhoven, Netherlands, is an inspiring example of circular construction. Its modular design allows for components to actually be disassembled and reused in future projects. This creates essentially a closed-loop system that minimizes waste and maximizes resource efficiency.

Competitive Advantages in the CRE Industry

The adoption of these sustainable building design trends provides significant competitive advantages for professionals in the CRE industry.

Companies that prioritize sustainability attract environmentally conscious tenants and investors, positioning themselves as leaders in the market. Furthermore, sustainable buildings often command higher rental rates and lower vacancy rates, translating into better financial performance and improved long-term asset value. Additionally, sustainable practices contribute to a positive corporate image and can attract top talent who are increasingly mindful of environmental responsibility.

CRE professionals must stay informed about the emerging trends in sustainable building design and construction. From net-zero energy buildings and green roofs to smart building technologies and circular economy principles, these emerging innovations are reshaping the future of commercial real estate.

By embracing sustainability, professionals can gain a competitive edge, attract high-value tenants and investors, and contribute to a more environmentally responsible and economically viable built environment.

Remember, the future of commercial real estate lies in creating sustainable spaces that not only meet the needs of today but also safeguard the planet for generations to come. So, let’s embrace these emerging trends, drive positive change, and shape a brighter future for the CRE industry.

Is Commercial Real Estate Cooling?

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With Fed rate hikes continuing indefinitely, many are asking what the future holds for CRE. Are we finally at the end of the bull market? While it seems a recession is more and more likely, just how will this impact CRE?

Perhaps the biggest question in the minds of professionals is whether or not commercial real estate is cooling down. Has a slowdown already begun? Just how will capital markets affect real estate? Let’s wade into these waters to get a better handle on what the rest of this year and 2023 will look like.

Interest Rates

It’s no secret that commercial real estate is a highly leveraged industry. Interest rate hikes are not our friend. And it would seem that recent rate hikes will continue for a while. Because the cost of capital is rising, investors are more hesitant. Higher interest rates mean smaller margins and greater risk. It’s quite likely that over the next year or more, success in CRE will require more capital and more effort than the previous few years.

However, there is currently somewhat of a disparity between capital markets and property markets. While rising interest rates are making it more difficult to fund new projects, we still see strong fundamentals. Most commercial properties are still outperforming expectations. Commercial real estate may be cooling, but it seems quite gradual.

Other factors are holding up. For example, job growth is still strong. CRE compensation is still rising, as demand remains strong. And liquidity is still profound at this juncture, leading some to theorize that an inevitable downturn will not be nearly as severe as the 2008 recession. Not all recessions are the same, and if we are entering one, it might be a mixed bag.

Market Sectors

2022 has not been a bad year for CRE. Though it all depends on which asset class you are looking at, commercial real estate in general looks rather strong considering the headwinds it is facing. Indeed, the remainder of 2022 looks promising, in spite of some commercial real estate cooling in the forecast.

Retail Properties

In densely populated areas, retail spaces like strip malls are performing well. Class B and C malls are struggling, but that’s nothing new. These buildings may present an opportunity for adaptive reuse as fulfillment centers or industrial space.

Multifamily Properties

Current vacancy rates are lower than they were in 2019 for multifamily, with rents at near-record highs. Nationally, the US is facing a housing shortage estimated to be between 2 million and 5 million units. Add to this the advent of Gen Z renters entering the market, and there is a strong argument to be made for modernizing and updating apartment space even during these uncertain times. Even Baby Boomers are selling their homes and renting in apartment spaces at increasing levels.

Office Properties

Offices are evolving, and companies may need to rethink how much office space they need. In an age of hybrid work and work from home, it is likely that demand for office space will decrease and change. How companies use their spaces will likely change, too.

Industrial Properties

Industrial space is still experiencing a boom, thanks to growth in ecommerce. Warehouses and fulfillment centers continue to be in high demand. Even though most commercial properties will likely see some level of slowing during a recession, if consumers continue to purchase online, odds are industrial space will remain in demand.

What’s Next?

There’s no denying that CRE deals are slowing down. Commercial real estate is cooling down like everything as interest rates climb. But as the balance shifts from a sellers’ market to a buyers’ market, there is immense opportunity to capitalize on new deals. The strength of multifamily and industrial are very promising.

Cheap debt is a thing of the past for the foreseeable future. As such, more-speculative deals aren’t as attractive. But with the shift, sellers are more likely to make favorable concessions to retain potential buyers. Bargains will once again enter the marketplace.

Office space will need some time to adjust to new formats and uses. Commercial real estate cooling will likely continue for a time as the overall economy reacts to rising inflation and rate hikes. But analysts are optimistic about new opportunities and long-term viability.

CRE Job Market, Facing Cooldown, ‘Like 2 A.M. In A Club’

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Taking the temperature of the labor market anytime between Memorial Day and Labor Day presents challenges, considering huge strategic decisions tend to get pushed to the fall. But the general sentiment of analysts, brokers and recruiters interviewed for this story suggested that anxiety had already curtailed opportunities, firms were taking steps to slow down new hiring, and any significant slowdown could have significant impact on the long-term recruitment of younger talent, especially brokers.

These shifts in the job market have taken place against a backdrop of declining CRE deal volume, which dropped more than 50% from a recent record of $347B in Q4 of 2021 to $172B in Q1 of this year. Many experts predict rising interest rates will dampen enthusiasm for deals going forward.

The foreshadowing of a more difficult job market on the horizon contrasts sharply with the optimism felt at the end of 2021 and early 2022. A Bisnow/SelectLeaders survey of 130 industry HR execs from February found many expected the year to bring more jobs, higher compensation, even additional benefits; more than half expected to hire more in 2022 than 2021. And in late 2021, industry experts argued that firms, stung by labor shortages, were gearing up to pay more.

Those predictions have generally held through the first half of 2022, especially in many of the hotter sectors in CRE, such as industrial, life sciences and multifamily.

But the job market is increasingly taking a conservative turn, said Kaitlin Kincaid, Keller Augusta senior managing director, with companies becoming more thoughtful about budgets, more choosy about roles and taking more time, especially when deciding on management and executive roles and specialty positions.

Jackson Lucas Managing Partner Chris Papa, who runs a CRE-focused recruiting firm, said that there’s increasing interest in debt and equity-focused roles, as well as a demand for asset managers: It’s vital to be important with your assets during a downturn.

“I feel the changes have been in the amount of hiring,” Building Careers President Carly Glova said. “Teams are looking at whether they really need to hire someone.”

To read the full article, visit the link below.

https://www.bisnow.com/national/news/top-talent/real-estates-red-hot-job-market-on-precipice-of-slowdown-113787

CRE Compensation Still Rising

Lingering Effects of the “Great Resignation”

In 2020, when literally one in four firms froze hiring and most jobs were either put on hiatus or changed to work-from-home status, the prospect of a labor shortage might have seemed silly. Yet within a year, what has come to be described as the “Great Resignation” rocked the workforce. As many preferred to go into early retirement or work a side hustle or just stay home, firms began noticing how challenging it was to find new hires.

Pair this was with a period of significant economic growth in the rebound from the COVID crisis, and you’ve got a major talent war. In 2021, a large segment of firms in commercial real estate began reporting difficulty in meeting their hiring needs. Since then, however, the problem has only worsened. And now, in 2022, firms are still feeling the lingering effects of this stark drop-off in talent.

Around 60-70% of all CRE firms are still challenged by the lack of supply. As a result, the cost of filling a new opening is mounting. This is especially true for roles in high-demand fields where competition is fierce. Anything requiring specialized or technical know-how are commanding top dollar right now. Analysts are in very high demand. This is also true of professionals with a more general proficiency in a variety of skills.

And because the cost of turnover or replacing existing staff is so high – as much as twice their annual salary in many cases – there is also an emphasis on retaining top talent as a cost-saving measure.

Facing the Rising Cost of CRE Talent

In response to these shortages, salaries and compensations packages are rising dramatically. Some executives are reporting upwards of 20% compensation increases when they switch companies. Most companies are hiring middle management in particular. And diversity candidates are among the most sought after. But firms are learning they will have to pay for them.

This has brought about a shift in compensation packages – a reset of sorts. The talent crunch has brought workplace issues back to the table for renegotiations. CRE professionals are expecting more flexibility and work-from-home options. In reality, there is still a gap between what they’re asking for and what firms are willing to pay. But many are offering telecommuting options up to four days a week. And bonus realizations based on performance goals were at about 90% last year.

In reality, there is a renewed push for reevaluating corporate culture as a whole. Today’s CRE professionals are empowered by these changes and can demand more for their investment in a firm. Thus, CRE businesses should carefully analyze what they offer these candidates and expect to significantly alter their compensation packages – not only the bottom line, but also in work-life considerations and cultural concessions.

With around 78% of CRE firms aiming to have an increased workforce in the near future, some are even offering equity to middle-to-lower management to sweeten the deal. CRE compensation is becoming especially negotiable around young and promising new talent capable of pivoting these companies into the “new norm.” As the commercial real estate landscape evolves, those leaders who can facilitate a transition are particularly valuable.

Looking Forward

With talk of a recession mounting, it would seem that the era of rapidly rising salaries and compensation packages for commercial real estate is nearly over. There have been recent talks of layoffs for the first time since 2020. In June of this year, layoffs in the tech-related sector were announced.

While once thought invincible, CRE jobs in the tech space are now in question. But some believe this is only part of the cycle and that the overall trend will be for higher and higher demand, even in this space. Of course, no one can predict what the next year will hold. But the strong demand in commercial real estate, coupled with the historically low supply of talent, seem to spell continued growth in CRE compensation.

Now is an exciting time to be working in CRE. Those seeking to grow in their career have ample room for it. And those firms seeking to evolve and improve have an opportunity to address workplace norms and culture in new and unprecedented ways.

Inflation And The Workplace

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As we continue the new year with the expectation of slowing economic growth and continued high inflation, we want to take a closer look at the relationship of inflation and the workplace — and how commercial property trends will change as a result.

Inflation and Expending

As we know from our own personal finances, people tend to change their spending habits when inflation drives prices higher. We may buy fewer name-brand products, eat out less frequently, and cut back on luxuries like vacations. To manage our expenses long-term, homeowners may even choose to downsize to a smaller house.

Businesses are no different. Inflation and the workplace relationship forces businesses to also make more prudent buying decisions, spend less opulently and manage costs aggressively.

For businesses, however, there is an additional complicating factor. Inflation and the resulting increase in the cost of living often necessitates higher pay for workers. As companies attempt to manage costs, this presents a significant challenge in any inflationary year. Further confounding the matter in 2022 is the nation’s tight labor market, in which competitive pay will be vital to attracting new employees and retaining existing ones.

Can Workplaces Navigate Inflation?

With pay cuts presumably off the table, how will employers contain costs while remaining competitive in the marketplace? One of the most obvious cost-cutting measures is to reduce operating costs like rent and utilities. This can be done in one of two ways: either by moving to a less costly facility or reducing the amount of space they own or lease.

How Do Recruiters Work?

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ou know that the economy is crazy right now, that the CRE talent war is escalating, and that it can be challenging to find the right hire or open position. You know that recruiters are said to be the best way to cut through the white noise and identify the ideal opportunity. But what you may not know is how recruiters work.

There is a lot of mystery surrounding the art and science of headhunting. But really, the average, effective recruiting firm follows a basic process to match the best talent with the best positions. So, if you’ve ever wondered just how a recruiter goes about making these matches, keep reading. Let’s look at key elements that make up just how recruiters work.

What Do Recruiters Do?

Of course, recruiters match talent with open positions. But just what is the process of effective recruiting?

As a rule, recruiters maintain a database of professionals, whether on the bench or currently employed. They routinely make contact with the people in this network to discuss opportunities, industry needs, compensation norms, and other strategic insights.

In other words, they stay in the know. They are on the front lines of hiring for their industry, and when a position comes open, they can leverage their database to yield a slate of qualified candidates. These databases can be sorted by a myriad of filters and parameters, based on the specifications provided by the clients.

By analyzing resumes and advising both employers and candidates, the recruiter acts as a go-between and matchmaker. They are both a strategic advisor and your inside scoop.

How Recruiters Work for Candidates

If you are a professional interested in working with a recruiter, you need to understand how recruiters work for you and just what it means to work with a recruiter as a candidate.

First off, it’s important to note that recruiters technically work for the company doing the hiring. In other words, they are paid by the employer, not the candidate. This means they are free for you. And though you don’t cut them a check, you can avail yourself of numerous services through the process.

When you submit your resume or CV to a recruiter, be accurate about your skills, compensation expectations, etc. When a recruiter learns of an opening, the first thing they will likely do is search their database. If the position is offering $100,000 annual salary, but you’ve said your minimum is $110,000, your resume likely won’t come up.

When a recruiter surfaces your resume as a potential match, they will reach out to you, typically via phone, but often via email, too. Talk freely with them about your expectations and goals, work/life balance needs and company culture requirements. Recruiters guard the confidentiality of everyone they speak to, and they can be a great sounding board for what you would like from your next career move.

If they choose to present you to the client, they may not reach back out immediately. They are likely discussing your qualifications with the client and waiting for definite feedback. Don’t bug them, but do reach out after a few days to get a status update if you hear nothing back. When you are selected for an interview, a recruiter will likely help you prepare. Listen, ask questions, and take advantage of this free resource.

How Recruiters Work for Employers

If you represent a company in need of rockstar talent, developing a relationship with a recruiter could be your smartest move. But how recruiters work for you may not be clear just yet.

To start with, there are two types of recruiters: contingent and retained. Retained recruiters are typically reserved for high-level, C-suite positions. Retained recruiters are paid up front or on a schedule. For entry-level to middle-senior positions, contingent recruiters are more common. Rather than being paid for their effort, they are only paid for results.

A contingent recruiter in the CRE industry will closely study your candidate requirements and put forward only the best candidates. Because they only get paid if their candidate is hired (typically 30-90 days after to ensure a long-term fit), and because hiring companies sometimes field candidates from multiple recruiters, contingency firms are highly incentivized to surface the best match possible. And they are highly efficient at doing so.

And because they are paid only after their candidate is hired, there is no risk for a company to work with them. It’s exciting to realize that you can maximize your recruitment reach by working with multiple contingency recruiters and source the best match, risk free. While you consider the most qualified candidates, the recruiter will reach out to them on your behalf for clarifying info and to align expectations.

Recruiters are trusted partners in the hiring or job search process. By better understanding how recruiters work and what they can do for you, you’ll be able to get the maximum results and ensure long-term success in your career or company.

Key Highlights from the NAIOP Annual Report for 2022

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Each year, NAIOP, the Commercial Real Estate Development Association, releases a report on the state of the commercial real estate industry with thoughts on the previous year and forecasts for the current year. The NAIOP annual report contains strategic insights from the nation’s foremost commercial real estate, economic, and public policy experts through their Research Foundation’s Distinguished Fellows Program.

This year’s report focused on the challenges of 2021, from the ongoing COVID crisis to supply shortages to stalled back-to-office plans. The 2022 report further examined key hot-button issue and trends unfolding in the current year. Here are the key takeaways from the NAIOP annual report.

Economic Impact of CRE

Commercial real estate generates significant economic activity, and 2021 was no different. In the NAIOP annual report, the Research Foundation examined the wages, salaries, and other financial factors stemming from the commercial real estate industry in the US for the previous year. They found the following were generated from commercial, residential, institutional, and infrastructure development of existing commercial buildings:

$4.8 trillion USD or 21% of total GDP
32.7 million US jobs, including new job creation and support of existing jobs
Substantial personal earnings and state revenues

New Development Approvals Index

NAIOP announced the creation of a new resource to help developers better evaluate local approval processes. This New Development Approvals Index compares the process of obtaining entitlements and permits across various local jurisdictions. This index will help new developers overcome the inconsistency and costliness inherent in a fragmented approvals system to make investment decisions clearer.

Future Trends for Industrial and Office Space Demand

The NAIOP annual report announced two studies that provided a strategic outlook on current and future trends relating to commercial real estate market in the US.

On the office space side, their study showed that office net absorption was negative throughout 2021. Yet heading into 2022, absorption is gradually digging out of this whole and steadily improving. In the final quarter of 2021, the net absorption is forecasted to reach 8.3 million square.

Some of the factors contributing to this positive revision include declining unemployment rates, more workers returning to the office, and an improving economy.

On the industrial space side, according to the forecast from Q# of 2021, demand is strong. Industrial real estate is expected to remain strong in the long term in spite of rising interest in ecommerce.

According to the study’s forecast, total net absorption for the last half of 2021 is expected to be 162.6 million square feet. This represents a quarterly average of 81.3 million square feet. The forecast for 2022 is even more positive, with projected net absorption at nearly 335 million square feet, reflecting an 83.6 million square feet average per quarter.

New Talent Entering CRE

Commenting on prospects for new professionals beginning a career in CRE – with its pros and cons – F.E. “Skip” Kalb, the 2022 NAIOP Research Foundation Chair, commented:

I’m enthusiastic about the young professionals coming into commercial real estate…This generation grew up in a technology-driven world, and they offer unique perspectives into the data and trends shaping commercial real estate.

The CRE Talent War Is Escalating

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Companies are shifting compensation plans and recruitment strategies as the CRE talent war escalates. Since the downturn in 2020, the commercial real estate industry has bounced back, albeit amidst a shortage in qualified talent that has seen rising salaries and restructured expectations.

The Talent Shortage

The labor shortage has extended to the commercial real estate (CRE) industry, and companies are facing the reality that it will likely escalate in 2022. Already, approximately half of CRE companies report hiring challenges have impacted their company moderately or severely, according to a recent CPE 100 survey.

In the same survey, approximately half of industry leaders reported frustration with the available talent pool, stating it is adequate for some searches but inadequate for others. Additionally, a full 25% of respondents said the talent pool simply doesn’t have what they need for their job openings in commercial real estate.

As a result, many companies have been forced to shift recruitment policies over the past year or more to be more flexible and diverse in their expectations. As more and more openings chase fewer and fewer qualified professionals, the CRE talent war escalates.

Rising Compensation Expected to Continue

Professionals in all CRE roles can expect salaries and compensation packages to continue rising. Talent is at a premium, and firms must reset their expectations to stay competitive. Nearly 90% of real estate firms offered merit bonuses in 2021. Attracting CRE rockstars is requiring companies to change their work environments, as well as role expectations and pay.

One way firms are changing their expectations is in the area of diversity in hiring. It’s becoming more and more apparent that companies want to hire diverse candidates, yet those candidates come at a premium, simply because they’re hard to find. Likewise, approximately half of CRE companies are changing their talent management plans to attract younger talent.

Meanwhile, overall, salaries have yet to flatline. It is likely that companies will continue to adjust to the CRE talent war, raising salaries throughout 2022. A new trend in the CRE space is for hiring companies to offer equity, even to lower-level positions to make them more competitive.

Countering the Shortage

Creative strategies are called for to counter the shortage. Companies that allow for more remote-work flexibility and an enhanced focus on work-life balance will attract a larger pool of job prospects. Competitive CRE firms are also renewing their push for higher retention levels among existing employees. Those who recruit from within, ask for employee referrals, and actively leverage personal networks, both online and in person, will have a competitive edge.

However, while in-house HR teams and hiring efforts can still have some success, successfully sourcing from a shrinking pool in these highly competitive times requires an edge. And maintaining a working relationship with a proven CRE recruiter is a proven tactic for companies to combat this talent shortage.

Some of the key advantages of going with a professional headhunting firm include:

Trust and confidentiality
Company advocacy
Help with role structuring
Better talent access
Repeated hiring success

With the CRE talent shortage on the rise, short-term solutions won’t do. Competitive firms in the commercial real estate space are looking to the future with the assumption that the talent shortage won’t resolve in the near future. With long-term flexibility and strategic planning, future unknowns will pose less of a challenge.

CRE Firms: Recruitment Plans for 2022

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Pandemic-era disruptions have roiled the real estate industry, but when it comes to compensation, the impact on CRE firms has just begun to be felt.

With new leverage in an era of labor shortages and increasing concern about diversity, empowered workers have made it that much harder for firms and human resources departments to find and afford the talent they want, industry recruiters and researchers say. As a Deloitte CRE survey put it, “the tight labor market is bringing workforce issues to the forefront.”

Competitiveness explains part of the shift. Everyone, it seems, is hiring at the same time. Per CEL data, 66% of private firms and 58% of public firms are hiring, and 78% of all firms expect to have a net increase in headcount when the year is done. That’s a sharp rebound from 2020, when 1 in 4 firms implemented a hiring freeze.

“Salaries haven’t yet flattened out, but I am not sure how high they will go,” said Carly Glova, president of Building Careers, a commercial real estate talent firm. “Companies are slowly adjusting to the higher compensation packages, so there may be a continued adjustment period into 2022.”

Commercial real estate firms also stumble a bit when it comes to hiring young talent. CEL research finds that 48.3% of firms will likely change their talent management plans specifically to attract younger workers.

Building Careers’ Glova said that despite the potential awkwardness of making equity part of new compensation discussions, opportunities for equity are becoming more readily available and tied to specific deal metrics, becoming a more prominent part of the compensation package.

Remote working, and the ability to do so, has also factored into the industry’s wide-ranging talent search. Not that many senior positions and hires have problems with receiving or demanding remote work privileges, especially in tech-related roles, while junior roles have a higher bar to clear to earn a similar schedule.

Ultimately, the in-office issue is part of the larger, and immediate, need for talent in the industry, from life sciences to acquisitions managers. A worker shortage at a moment when the industry is pivoting and becoming more technologically complex means that experience is in even higher demand than usual.

“[Firms] are looking for people with specific skill sets that can ramp up quickly as most don’t have time to train entry-level people,” Glova said. “Candidates with more experience are more sought after.”