Industry Insights

Let’s face it: when people think about commercial real estate (CRE), they tend to focus on the hard skills – things like market analysis, financial modeling, etc. But the real game-changers are often the softer, less obvious skills that separate the good from the great.

And that’s what we’re going to reveal here and now: soft skills for CRE that set you apart. And we’re going to show you specifically how to grow in each of these five areas.

Because soft skills are the secret sauce for CRE professionals – it’s how they navigate this complex industry So, here the ones you should have in your toolkit as well as how to sharpen them.

1. Communication: Speaking the Language of Deals

CRE professionals study effective communication. You’re constantly explaining complex ideas to people who might not have your level of expertise. If you can’t break it down simply, then you’re going to lose them.

For example, let’s say you’re pitching an investment opportunity to a group of potential investors. Half of the room might be finance pros, but the other half could be entrepreneurs with minimal CRE knowledge. Your ability to tailor your message to both groups is what lands the deal.

So, how do you develop this ability?

• Practice summarizing complex topics in a single sentence. Think of it as the headline of your story.

• Take public speaking workshops, even if you think you’re decent already. Toastmasters is a great place to start.

• Seek feedback from colleagues. Honest critiques help you grow.

2. Negotiation: The Art of Finding Win-Wins

In CRE, negotiation is everywhere—leases, sales, development contracts. It’s not about steamrolling the other side, but the best negotiators know how to balance assertiveness with collaboration. And this creates outcomes where everyone feels like they’ve won something.

Imagine you’re negotiating lease terms for a high-profile client. They want low rent; the landlord wants a longer-term commitment. Your ability to listen, identify common ground, and propose creative solutions (like a phased rent increase) makes all the difference.

You develop this soft skill by:

• Studying classic negotiation strategies like BATNA (Best Alternative to a Negotiated Agreement). Understanding fallback positions gives you leverage.
• Role-playing scenarios with a colleague. Practicing tough conversations in a low-stakes environment builds confidence.
• Focusing more on active listening. Most people aren’t great at it, so this alone sets you apart.

3. Emotional Intelligence: Understanding People Beyond Numbers

Commercial real estate isn’t just about properties; it’s about people. Clients, tenants, and stakeholders all bring emotions, motivations, and expectations to the table. Emotional intelligence (EQ) is your ability to read the room, build rapport, manage relationships, and navigate conflicts with grace.

If a client is upset about unexpected delays on a project, you don’t rush in to defend yourself or blame others. Instead, you acknowledge their frustration, explain the issue clearly, and offer solutions. That’s EQ in action.

Next steps:

• Work on self-awareness. Keep a journal or reflect after stressful interactions: “What triggered my reaction?”
• Pay attention to body language and tone. They often reveal more than words.
• Practice empathy by asking open-ended questions: “How does this impact your goals?”

4. Adaptability: Navigating an Ever-Changing Market

CRE is nothing if not unpredictable. Markets shift, interest rates fluctuate, regulations change – and then there’s technology, which keeps reinventing how we do business. Adaptability isn’t just a nice-to-have; it’s a must.

Take the recent surge in remote work. Office space demand plummeted, while industrial and mixed-use properties surged. The CRE pros who adapted and explored new strategies and asset classes were the ones who thrived.

How to hone this skill:

• Stay curious. Subscribe to industry reports and attend webinars to stay ahead of trends.
• Take on projects outside your comfort zone. Stretching yourself builds resilience.
• Reframe setbacks as learning opportunities: “What did this teach me?”

5. Networking: Building Authentic Relationships

Sure, technical skills get your foot in the door. But it’s your network of relationships that opens the doors to the biggest opportunities. The key is to make it genuine. People can spot transactional networking from a mile away.

For example, instead of attending every happy hour just to collect business cards, focus on smaller, quality interactions. A 10-minute, meaningful conversation with someone in your niche beats a dozen surface-level chats every time.

How do you develop this?

• Prioritize smaller, focused events over massive mixers. You’ll have better conversations.
• Find more ways to optimize your LinkedIn. Use your profile to stay connected and share valuable insights, not just self-promotion.
• Follow up! Send a quick, personalized note after meeting someone to keep in touch.

Soft Skills for CRE Are Your Competitive Edge

Soft skills might not be flashy, but they’re the backbone of a successful CRE career. The best part? They’re learnable. Start by picking one or two areas to focus on, and you’ll see the impact ripple through your deals, relationships, and reputation.

So, what’s your next move? A public speaking class? A deep dive into negotiation strategies? Whatever it is, remember: honing your soft skills isn’t just about career advancement. It’s about becoming the kind of professional people want to work with – and that’s priceless.

Sources:

• 5 Keys to Effective Business Communication – Building Careers
• How to Build Rapport in the CRE Workplace – Building Careers
• Interest Rates Are Falling: What It Means for Commercial Real Estate – Building Careers
• Beyond Happy Hour: Fresh Ideas for Building Authentic CRE Connections – Building Careers
• 5 More Ways to Optimize Your LinkedIn for CRE – Building Careers

Networking.

Maybe it brings to your mind overcrowded happy hours and awkward, forced conversations. But here’s the thing—networking doesn’t have to be a chore.

In commercial real estate (CRE), where relationships are everything, there are way better ways to connect. But you’ll have to think outside the bar tab. If you want to forge lasting and meaningful CRE connections, you just need a little creativity and proactivity.

So, let’s dive into five fresh ideas to make networking feel more like building real relationships and less like a numbers game.

1. Skip the Mixers—Go Niche with Industry Events

Why aimlessly wander around a general networking event when you could be at a focused CRE panel or workshop? These are goldmines for deeper conversations and real connections in the CRE space. Plus, the people there actually care about what you care about—unlike someone cornering you with their elevator pitch at a happy hour.

Here’s how to make it work. First, do a little recon. Who’s speaking? Who’s attending? Really prepare and have a plan. Then, when you’re there, don’t just sit silently in the back. Ask a smart question or two during the session—it’s an easy way to get noticed. Afterward, skip the generic “nice to meet you” emails. Instead, mention something specific they said during the session.

These events are perfect for finding people who geek out about the same things you do, which is way better than pretending to enjoy small talk.

2. Dive Into Online Communities (Yes, They’re Worth It)

Think LinkedIn is just for job-hunting? Think again. It’s also a place where CRE professionals share market insights, industry news, and hot takes. And then there are niche forums or even Reddit threads where you can join conversations that matter to you. The trick here isn’t to lurk in the shadows—it’s to actually engage. Here’s a few tips:

• Comment on posts with something thoughtful (no “great post!” nonsense).
• Share an article or insight you’ve come across, along with your perspective.
• Start a conversation yourself. Got a question or observation about a market trend? Put it out there.

Over time, people will start recognizing your name as someone with ideas worth paying attention to. And guess what? That’s networking, even if it doesn’t feel like it.

3. Team Up on a Local Project

CRE pros are all about impact—on buildings, on cities, on communities. So why not use that to your advantage? Jump into a local project that really matters to you. Whether it’s urban planning, affordable housing, or even a sustainability initiative. Not only are you doing some good, but you’re also meeting others who care about the same things you do.

Let’s say you help organize a community cleanup or assist with a local affordable housing fair. You’re not just shaking hands; you’re working shoulder-to-shoulder with people. That builds connections way faster—and stronger—than handing out business cards.

4. Tap Into CRE Tech Platforms

If you’re already using tools like CoStar, CREXi, or LoopNet for deals, why not use them to cultivate your CRE network, too? These platforms are crawling with other pros looking at the same data you are.

Spot a user whose listings catch your eye? Shoot them a quick message—not to pitch anything but to ask a thoughtful question or start a conversation. Share tips on how you’re using the platform effectively. People love learning hacks. Stay active, whether that means posting insights or simply engaging with others’ activity.

It’s not exactly the same as grabbing coffee, but in today’s tech-driven world, it can be just as effective at creating meaningful CRE connections.

5. Keep It Small and Purposeful

Here’s a radical idea: Forget the big events entirely.

Instead, focus on smaller, tighter-knit groups where you can really build rapport. Breakfast roundtables, book clubs, or even just a casual coffee meetup with a handful of people can be way more rewarding.

Why? Because these settings give you the space to actually connect. No loud music. No juggling a drink and a plate of appetizers. Just real conversations. You know, the way your grandparents used to make deals.

You could even organize your own. A book club for commercial real estate professionals? A brainstorming group for solving zoning challenges? Why not? When you create these spaces, you’re not just networking—you’re becoming a connector. And that’s a power move.

Making CRE Connections Naturally

Networking doesn’t have to be a grind. In fact, it can be a natural part of a healthy work-life balance.

The days of slapping on a name tag and hoping for the best are long gone. By focusing on niche events, digital spaces, meaningful projects, and smaller gatherings, you can build connections that actually matter.

And when those connections come naturally and organically, they last longer. So, ditch the stiff networking events and try something fresh. Your career (and friendships) will thank you.

Sources:

• Networking Events 101: How to Prepare and Make a Lasting Impression
• Proven Principles to Achieve Career Success Without Sacrificing What Matters  – Building Careers
• https://www.crexi.com/blog/ccim-and-how-to-cultivate-your-cre-network
• How to Build Rapport in the CRE Workplace – Building Careers
• 7 Highly Effective Tips for Achieving Work-Life Balance in CRE – Building Careers

The commercial real estate (CRE) industry is witnessing a shift as the Federal Reserve takes steps to lower interest rates. With a recent 50 basis points (bps) cut and further reductions expected, the implications for CRE are vast.

But what do falling interest rates really mean for the industry? Currently the US has been facing the prospect of a CRE recession. Will the Fed’s cut be enough to avoid the big slowdown? Let’s explore how this shift can reshape the landscape for developers, investors, and borrowers alike.

Lower Borrowing Costs, Better Opportunities

Perhaps the most immediate and tangible benefit of falling interest rates for commercial real estate is reduced borrowing costs. For CRE stakeholders, this is huge.

Lower rates mean cheaper financing, which can improve the profitability of new projects and reduce the cost of servicing existing debt. As borrowing becomes more affordable, we may see an uptick in activity. Developers could be more motivated to greenlight new projects, while investors might take advantage of lower financing costs to expand their portfolios.

It’s important to note, though, that while financing costs will decrease, the effects won’t be felt evenly across the board. Larger players with access to capital might be quicker to act. But smaller firms could still feel the pinch of high costs until rate cuts fully trickle down.

But balance and caution are called for here. The 10-year Treasury yield is a key benchmark in the real estate world, and rate cuts generally push those yields lower. This can create a more attractive environment for CRE investments as the spread between borrowing costs and expected returns narrows. For developers, this alignment of falling yields and reduced interest rates might make it the perfect time to launch new projects.

That said, while lower rates create a fertile environment for investment, they can also spark competition. As borrowing becomes more accessible, demand for prime assets could drive up prices, creating new challenges for investors looking to capitalize on the favorable conditions.

CRE Fundamentals Looking Good

Historically, when the Fed starts cutting rates, it signals better days ahead for the financial markets. But do lower interest rates in 2024 equal a better 2025 for commercial real estate? CRE has been cooling for a few years now; can it be turned around so quickly?

The ripple effect of easier financial conditions often leads to improved fundamentals in the CRE space. Net operating income (NOI) could grow as businesses find it easier to expand, driving demand for commercial properties.

For CRE professionals, this means a shift toward more favorable conditions for cash flow, underwriting assumptions, and valuation metrics. The current rate cut, although modest in impact for now, signals a broader move toward easier conditions that could open the door in future years for more growth in the sector.

It’s not just new deals that stand to benefit, either. Investors with floating-rate debt could see relief as well, with lower rates making it easier to manage debt service costs. Over time, these developments should contribute to more fluidity in the capital markets, helping to restore positive leverage conditions. In other words, this could be the beginning of a new chapter for CRE.

Looking Ahead: More Cuts to Come?

The Fed’s recent action marks the start of a shift from restrictive to more accommodative monetary policy. And it’s not over yet. Analysts are predicting more cuts by year-end, which could push rates lower. And lower interest rates would ease financial pressures on commercial real estate.

While these reductions are certainly welcome, it’s important to remember that we’re still in the early stages of this easing cycle. The effects will take time to materialize, but as more cuts come, the broader CRE market will likely experience a boost in more tangible ways.

For CRE stakeholders, the Fed’s rate cuts bring cautious optimism. Lower borrowing costs, improved market conditions, and a more favorable investment climate are all on the horizon. But with these opportunities come new challenges – chief among them, increased competition and rising asset prices. Navigating this new landscape will require a careful balance of risk and reward.

As interest rates continue to fall, commercial real estate may be on the cusp of a new growth cycle. And for those ready to leverage this window of opportunity, the potential rewards could be significant.

Sources:

• How to Weather a CRE Recession | Building Careers (buildingrecareers.com)
• Yesterday’s Interest Rate Cut: Understanding the Impact on Commercial (northmarq.com)
• Is Commercial Real Estate Cooling? – Building Careers (buildingrecareers.com)
• Fed Pivots: The Next Chapter for Commercial Real Estate | US | Cushman & Wakefield (cushmanwakefield.com)
• Will the Fed’s Interest Rate Cut Boost US Commercial Real Estate? | Altus Group Insights

If you’re looking for job posting tips to ensure your CRE job post brings in only the most qualified candidates, then this is for you. Because it’s a crowded job market out there. And hiring the wrong person can cost you. Unlock the secret to strategic job posting with the tips we reveal below.

It all starts with creating the right job post. But most companies have to revise their job posting after publishing it. Why? Obviously, they didn’t get it right the first time. And apparently, they weren’t attracting the right talent.

So, here are 10 tips to nail that job listing and get resumes only from the most qualified and talented leads out there. Every one of them is guaranteed to improve the quality of your results.

1. Write Clearly.

Now is not the time to use fun buzzwords that don’t tell prospects much about what is actually required for the position or what the role entails. Be clear, concise, and descriptive. Looking for someone with experience in multi-family? Then state how important this point is.

2. Include Compensation.

It’s the elephant in the room. No one wants to list salary specifics. Yet it’s the #1 most important distinguisher to serious job applicants. So at least state a clear range and what the benefits entail. Of course this is all negotiable. But list some numbers to filter out candidates who would be a waste of your time.

3. Create an Employment Value Proposition.

What is an employment value proposition (EVP)? In short, it’s the sum total of the value that your organization can provide to potential employees. Everything that makes your organization an attractive place to work – from the salary to workplace culture to employee development and team building opportunities – your EVP is a statement that attracts qualified professionals of similar personalities and value sets.

It’s one of the most overlooked job posting tips, but including a clear EVP will automatically draw the right kind of candidates and convince them of the value of committing their time and energy to your team.

4. Help candidates Self-Assess.

Think about it. If you give candidates the right tools within the job posting to assess their fit, you avoid having to filter out unwanted resumes later on. A good job posting saves resources for both your company and the candidates by giving specific markers to gauge if they are a good fit or not.

5. Use the Right Keywords.

Everything is all about the algorithms these days. Technology has reshaped CRE as well as the way we find CRE professionals. If you want your advertisement for this job to land in front of the right people, make sure it corresponds to the same keywords your ideal candidate is searching right now. All the other CRE job posting tips are worthless if your ad doesn’t get seen by the right people.

6. Ask for Help from a Similar Employee

No one ever thinks of this. But why not get help writing the job post from someone already working in the same role or who has the same basic skill set? Ask them to think about what attracts them and what to include in the post. Because they’ll know more than anyone what skills are needed.

7. Format.

Break up text blocks by using sub headers and only 1-3 sentences per paragraph. Clearly define the sections, and consider adding translations for diversity.

8. Prioritize Company Culture/Personality.

Among the most important job posting tips is that new hires who are a good cultural or personality fit tend to perform better than those with the right skills. The saying goes, hire for attitude, train for skills.  Put your company vibe out there in the job post and be specific about the kind of personality that will fit best. Your vibe will attract your tribe.

9. Include Multimedia.

This isn’t just a job description. It’s an advertisement meant to motivate and attract the right talent for your opening. Include eye-catching graphics and video to show off perks and employee experiences. Images of the property and team consistently rank among the top factors candidates look for in a new job.

10. Talk About Onboarding.

It might seem like jumping ahead in the process, but candidates who are committed to success want to know they will be appreciated and fully utilized. In the job posting, include information about your onboarding and new-hire integration process.

In all of these, remember that you can spend the time sorting through and screening dozens of resumes to find one or two worth interviewing – or you can spend that time crafting a strategic job post that will self-screen and automatically bring the right candidates to you. Starting your hiring search right is up to you.

Sources:

• The Cost of a Bad Hire and How to Get it Right | Building Careers, LLC (buildingrecareers.com)
• Actionable Steps to Establish an Employment Value Proposition | Building Careers (buildingrecareers.com)
• How Technology is Reshaping CRE – Building Careers (buildingrecareers.com)
• Hire for Attitude, Train for Skill (hbr.org)
• 10 Steps to Effectively Onboard CRE Hires – Building Careers (buildingrecareers.com)
• Career Opportunities | Hcareers
• How to write an effective job posting to attract the best talent (testgorilla.com)

The fact is, having a paper resume isn’t enough to be hired in commercial real estate (or any industry, for that matter).

You want recruiters to recommend you? You want companies to notice you? You want to be hired? Then you need to change the way you think of a resume. Because, in a broader sense, your resume is your CV plus your social presence (aka LinkedIn).

Therefore, it’s absolutely essential to maximize the impact of your LinkedIn profile to properly display your fit for the job you want and get you the interview. LinkedIn is jam packed with features and tools to help you stand out as the right candidate.

No, LinkedIn isn’t the whole picture. Yes, you still need to craft a CRE resume that stands out, network, partner with a recruiter, and interview prep. There’s more to a job search than social media. But optimizing your LinkedIn for CRE is without a doubt an essential part of the equation.

So, let’s dive into how to get the most out of it.

1. Headshot

The first impression is always going to be your headshot. We’re visual creatures, and a good headshot is going to get you more clicks than the competition. It should be:

• Professional
• Flattering
• High quality
• Not a selfie
• Current

2. Headline

No, this is not where you put your current job title. Yes, that’s what most people do. But your goal isn’t to be like most people; it’s to stand out and craft a LinkedIn profile for the CRE job you want.

It’s the first thing recruiters and hiring managers see. It’s not hid by a see-more button. And it helps categorize your unique value. In short, it’s prime LinkedIn real estate.

Your goal is to aim for a line that combines your current and previous functions and expertise along with the job title you want. Be specific to help identify your specialty. Communicate both what your specialty is and what you offer a prospective company.

In other words, don’t just leave it at “Property Manager.” Instead maybe opt for, “Accomplished Property Manager in Senior Housing Leveraging Tech Systems for Max Results.”

3. Your About Summary

So many commercial real estate professionals get confused at this point. This isn’t where you copy and paste boilerplate about your company, your job description, or your resume. This is where you tell the story of your experience and accomplishments.

List the property and project types you’ve focused on. For example: retail, ground-ups, mixed-use, etc. And don’t stop there! Add the scale and scope of these projects to give employers a better sense of what your baseline experience is.

Any specialties like LIHTC or senior living? What about cold-storage or high-rise office? Where were these projects or assets located?

4.  Network

Yes, you should have a lot of contacts. Doesn’t quality matter? You betcha! But quantity does, too.

Ideally, you’d like recruiters to see that 500+ tag on your profile, but they should at least see you’ve networked with 200 or more professionals in the industry to let them know you’re committed and well nestled in this industry.

Update your status often to stay in the feed and open networking opportunities. Frequent profile updates increase your visibility and search ranking, so check in every week or so to spark conversations.

And join LinkedIn groups, too. These don’t just look good on your profile; they also provide a forum for improvement and advancement in your market. There are several LinkedIn groups every CRE professional should join. So, start plugging in.

5. Categorize Properly

LinkedIn allows you to choose a category that best fits your industry and specialty. Explore the options and select the one that fits best. The names of categories have evolved over the years, and some may still need improvement. But choose the best one for your industry category.

Previously, LinkedIn categorized Commercial Real Estate under “Leasing Non-residential Real Estate.” But there is now an option for “Real Estate” and “Real Estate and Equipment Rental Services.”

6. Expertise

Don’t skip the certifications, education, and experience sections if you want to make LinkedIn work for your CRE job search. State your credentials clearly. If you have a CPA, say so. List any and all previous positions that demonstrate proficiency in your target field. List your honors and awards. Include any CRE-related tech and software experience that may set you apart, such as:

• Sage
• Procore
• Yardi
• MRI
• Adobe Suite
• Lease Matrix
• Argus

7. Keywords

Don’t forget to set up your LinkedIn profile for CRE recruiters. Keep hiring managers in mind when writing. Sprinkle in keywords associated with your market and industry.

The Recommendations section is a great place to do this, too. One thing that can enhance profile visibility and searchability is recommendations that contain relevant keywords and phrases. It improves your SEO and increases your chances of appearing in relevant search results for your target job.

For those commercial real estate professionals in search of the next advancement, putting the thought and effort into optimizing your LinkedIn for CRE keywords and specialties can make all the difference. With a little thoughtful optimization, you can help recruiters and hiring companies find you, better identify your value, and qualify your expertise in ways that will set you apart and land you the CRE job you’ve been looking for.

Sources:

• 5 Ways to Make Your CRE Resume Stand Out – Building Careers (buildingrecareers.com)
• How to Interview Prep to Get the Job You Want [10 Key Steps] – Building Careers (buildingrecareers.com)
• (29) 7 LinkedIn Groups Every CRE Professional Should Join | LinkedIn
• Which Tech Tools Help CRE Pros the Most? (globest.com)
• The Ultimate Guide To Crafting A LinkedIn Profile That Recruiters Love (forbes.com)
• (29) 7 Ways to Boost Your LinkedIn Profile to Get Hired Fast! | LinkedIn

What’s new in the world of California CRE? Right now, the commercial real estate in general is in flux. And this is particularly true in the California market.

Technological shifts and evolving use patterns are changing the ways buildings are built and used and sold. The concept of the office has been forever altered with work-from-home becoming more and more prevalent. Without a doubt, CRE is rapidly changing.

In California, there is concern about a recent slowdown. Some are concerned about a CRE recession. The market has certainly cooled down from the bull market of previous years. But recent commercial deals show a lot of activity, some positive, some negative. The California CRE market is complex, and recent developments in sales and construction reflect this dynamic.

Below is a look at just some of the new activity, deals, and developments in commercial real estate for the California market.

California CRE News Roundup

• Intuitive Surgical, a medical device manufacturer, acquired properties in Santa Clara in late 2023 as part of a large plan to develop a 1.17-million-square-foot campus. This deal totaled $157 million.
• 99 Cents Only filed for bankruptcy in April, 2024. The liquidation will vacate 3.8 million square feet of retail space in Southern California.
• Marcus & Millichap closed a $27 million sale of The Abbey Food & Bar and The Chapel at The Abbey in West Hollywood last month. The iconic nightspots were sold to Tristan Schukraft, who intends to continue their legacy.
• Thousand Oaks neighborhood saw the sale of a 400-unit apartment and townhouse portfolio in December, 2023. The sale totaled $171 million.
• Disneyland received final approval from the city of Anaheim for a $1.9 billion expansion in April. This massive plan will include restaurants, hotels, and a complete redesign of the Disneyland theme park. This represents Disney’s largest investment in the attraction since the 1990s.
• Goodman, a global industrial property and digital infrastructure specialist has broken ground on their new Goodman Commerce Center. The 500,000-square-foot development is expected to be completed by the end of this year.
• The University of Southern California released their new Casden Real Estate Economic Forecast in Q4 of 2023, forecasting a 2-4% increase for apartment rents in all SoCal housing markets over the next two years.
• The Mission Rock Partners development team recently held the grand opening of China Basin Park. The 5-acre waterfront park is intended to be the new central gathering place and regional destination for the Mission Rock neighborhood.
• Disney announced in Q4 of last year that they will invest $60 billion in their theme parks and cruise business, an infusion of capital for their California operations as well as other locations.
• The California Supreme Court is set to hear arguments this week on the constitutionality of a ballot measure intended to reverse Los Angeles’ real estate transfer tax. Advocates argue that Measure ULA has significantly reduced multi-family sales.
• The Santa Ana Development, a shovel-ready property less than a mile from downtown Santa Ana, recently sold to a local investor for $1.16 million.
• Downtown’s The James recently sold for $74 million. The luxury apartment complex located in downtown San Jose was transferred at what is considered a bargain price.

There’s a hot new term in HR that employers are focusing on to hep give them an edge over competitors in the hiring war. In commercial real estate, hiring and retaining superstar talent can be essential to long-term success. So, it makes sense that businesses in this field are asking about how to improve their employment value proposition to attract better candidates.

Just What Is an Employee Value Proposition?

This term is relatively new, but the concept is as old as time. So, just what is an EVP or Employment Value Proposition, and what does this mean exactly? In short, this term envelops the sum total of the value your organization can provide to potential employees. From the salary to the benefits to the workplace culture and employee development opportunities, your company benefits your employees. In exchange, they provide you with their skills, knowledge, and time.

But why should they?

What sets your company apart from all the other organizations in the commercial real estate space? That’s where your EVP comes in. It’s essentially your brand, but measured in the value you provide employees in exchange for the value they provide to the company.

How to Craft an EVP

It’s not as simple as setting a high salary and calling it quits. The fact is, CRE compensation is still on the rise. So, if that’s your only focus, you could be burning through a lot of capital to keep up. There are several key components that make up a vibrant employment value proposition, including:

• Compensation
• Benefits
• Stability
• Respect
• Location

These form the core of your employer brand and represent a promise to your workforce. To attract high-value candidates to fill your openings, it’s essential to craft an attractive EVP. Here’s how to go about it:

1. First, identify what sets your company apart. What are your unique selling points? Why would a potential employee want to work for you over another group?
2. Second, brainstorm to get a grasp on employee needs. What do employees want from a job in your field? How can your company empower people to meet these aspirations?
3. Next, incorporate your company’s mission and goals. Your employment value proposition should be closely aligned with your values and culture to show potential hires with similar values the benefit of plugging in there.
4. Then, review for integrity and authenticity. Is your company’s work schedule flexible? If not, don’t say it is.
5. Next, be tangible where possible. Put your value in their hands. Have you included everything that is relevant to their desired value, like PTO, learning opportunities, bonus structures, etc.?
6. Lastly, it’s important that your business communication effectively showcases your employment value proposition. Is it relatable? Is it compelling? Bring it to life with testimonials and specific examples.

Review for Success

Now that you have your EVP established and crafted, what next? Well, an employment value proposition isn’t a static thing. It needs to be reviewed and updated often for ongoing hiring success. Measure results and get feedback. This enables you to rethink your EVP and adjust for changing times and needs.

As you follow these actionable steps, you may find your proposition focuses too much on collective benefits and not enough on individual value. Or you may find too much emphasis on material value instead of the non-tangible benefits. Keep adjusting.

This continual cycle of reviewing and improving can help you craft an attractive employment value proposition that gives you a competitive edge for many years.

It’s no secret that things haven’t been great for commercial real estate for over a year. Since at least 2022, a cooldown has been in the forecast. Higher interest rates and other developing factors have led many to ask if a recession is coming for the CRE industry and the US economy at large.

In the world of CRE, recession could mean anything from a collapse to minor correction. Understanding the trends and how to stay ahead of them could be critical. Here’s what we think you should be paying attention to.

Is Commercial Real Estate Facing a Recession?

The US commercial real estate market is valued at around $21 trillion USD, but it faces challenges amidst rising financing costs and increased vacancies. Historical patterns suggest the market may be moving through denial, migration, and potentially panic phases.

Transaction volumes have decreased over 2023, and spreads between buyer and seller expectations have widened. Notably, the office market, estimated at $3.2 trillion, faces a significant shift due to remote work trends, with approximately half of office buildings currently occupied.

The 2020 crisis changed the way we work, introducing new patterns into real estate demand. This was exacerbated by changes in retail demands, leaving vast office spaces underutilized. Of course, this poses a risk of foreclosures, layoffs, and economic downturns, impacting property values.

However, while these factors are certainly not good, they don’t mean the sector is crashing. Is a recession on the horizon? Quite possibly.

Nevertheless, some point to positive signs like the robust millennial population, the global economic influence of the US market, and the potential for lifestyle revolutions through remote work, technology shifts, and others. These all indicate potential resilience in a downturn.

How Would CRE Be Impacted?

Recognizing fundamental shifts is crucial for navigating the CRE landscape. There is much reason to believe a recession is developing in the near future. It may be severe, mild, or it might even be years away. But whatever challenges exist, systemic strengths and optimistic prospects for the future suggest the risk lies more in missing strategic moves than in an imminent recession or market collapse.

If a recession does come due to increased interest rates, it will likely come in the form of a moderate downturn driven by weakened fundamentals and higher capital costs. But it will have far reaching ramifications. Lower asset values may also play a role.

The impact on the office sector could be significant, as hybrid working trends reshape demand, requiring adaptation in cities and the real estate industry. However, certain sectors, like data centers and industrial real estate, may show real resilience.

While a recession could mean reduced real estate investment and leasing activity, there are also positive signals. The market is not over leveraged, there is a strong balance sheet, and growth drivers such as the digital economy and reshoring of manufacturing can minimize damage. That said, it will likely continue to be a buyer’s market – something CRE professionals have not seen for a decade.

Geopolitical improvements, such as the end of the Ukraine-Russia war, could ease the recession’s impact, with falling commodity and food prices and increased stimulus in the Asia-Pacific region. Still, there is risk going forward, and CRE firms should be cautious. A 2024 recession could reshape the CRE landscape, impacting asset values, demand patterns, and investment dynamics.

Resilience Measures You Can Take

Whatever the future holds for commercial real estate, there are some common-sense steps to help you weather a storm.

1. Keep Cash Flowing

Make sure you’ve got some cash on hand or easy access through credit lines when banks tighten up during tougher times. Having a financial safety net to cover gaps and grab opportunities that may pop up can set you up for success in a CRE recession.

2. Lighten the Load

Don’t let high debt levels knock you out during a downturn. Deleverage, even if it means selling assets.  This creates resilience and increases flexibility.

3. Smart Loan Moves

Refinance any existing debt to give yourself more runway. Push those big payments five to ten years down the road so you can handle any bumps along the way. Try to negotiate upfront on what happens if things don’t go as planned.

4. Hold Off on Big Projects

Don’t dive into major projects that need lots of cash. When banks stop lending and owners can’t refinance debts that come due, it’s smart to have wrapped up big projects in advance to minimize risk exposure. You don’t want to be delivering a big project in the middle of a crisis.

5. Bet on the Winners

Focus on investments that can weather the storm. Stay away from properties that might become obsolete, like old industrial spaces and offices with less-than-ideal features. Keep an eye on developing industry trends and changes happening in the industrial, retail, and office spaces.

In short, take steps now to minimize the blow of a downturn or recession.