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  4. 2018 SelectLeaders Network Hiring Trends Survey Results

Perception often leads to reality. In the final weeks of every December, we conduct an industry-wide survey in cooperation with the 10 premier Real Estate Professional Associations, whose Career Centers are powered by SelectLeaders. Again this year, a rich mix of Real Estate Professionals: Candidates, Employers, Principals, Top-line Managers, and HR Executives share their insights and perspectives on the Real Estate Job Market and its prospects for the year ahead in their own words.

2018 SelectLeaders Network Hiring Trends Survey Results


75% of respondents’ companies had year-over-year revenue growth, with 31% achieving over 10% growth in revenue

69% of respondents expect a raise in 2018


Hurricanes, wild fires, nuclear threats, terror attacks, social unrest – the disasters of 2017 at times halted hiring, but they could not keep the real estate industry down. 75% of our respondents reported year-over-year revenue growth in 2017, with an impressive 31% achieving over 10% growth in revenue. However, many companies were hard hit. 25% of our respondents reported revenue decline, and 7% of these reported more than a 10% decline in revenue.

Impact of Disasters on Company Revenue 2018 chart

“Should be an interesting year…accelerating economic growth against a background of everyone thinking the next recession is around the corner, which it may well be.”


Expected Compensation in 2018

69% of respondents expect their total compensation to increase in 2018.

Expected Compensation in 2018 chart


Actual Compensation in 2016

Looking back at 2016, the last full year of compensation prior to our survey, 62% of our survey had their compensation increase.

Actual Compensation in 2016 chart


2016 Compensation Increase

The compensation increase in 2016 was quite significant: 32% received an increase of over 10%, while 18% received an increase of over 20%.

2016 Compensation Increase chart


Did you receive a Bonus in 2016?

64% received a bonus by the end of 2016.


Sexual Harrassment Impact

The recent sexual harassment allegations in other industries motivated 9% of our respondents’ companies to make changes in their company culture, or company policies.

Sexual Harrassment Impact chart


Are you a Passive or Active Job Seeker?

Hiring remained stable, as well as how our real estate professionals apply to jobs.

63% of our real estate professionals described themselves as “Passive” job seekers rather than an “Active” job seekers. How do you find your jobs? You decide on the criteria for your perfect job then set up email Job Alerts. You also complete your entire profile and check the box to allow our premier employers search for you.


When You Apply to a Job, What is the First Step you Usually Take?

Only 23% of our highly qualified job seekers apply immediately to a job. 77% wait to apply later.

When You Apply to a Job, What is the First Step you Usually Take chart


What does the collective wisdom predict for the year ahead?

“For employers, 2018 is going to be very tough to fill positions.”

“Employers will continue to be… short sighted with compensation of rank and file – yet continue to overcompensate executives.”

“Strong REIT’s will recover well causing further separation between Tier 1 and Tier 2 competitors.”

“Marketed properties are over-priced. Desired value is being driven by too much cash chasing too few good quality deals.”

“It’s tough to get deals done. Cap rates are very low which means less margin for safety. The spread between our cap rate and the rate we borrow at is disappearing. 2018 will be a tough year for acquisitions.”

“Possibly rocky as a result of tax reform since I work investments
in tax credits.”

“Expecting Development and Construction to slow down in the private
sector. Public sector should pick up with the government stimulus.”

“I expect the stock market to keep rising, the residential real estate market to grow at a slower rate and the commercial real estate market to stay about the same as it has this year.”

“Company was purchased by a larger enterprise; compensation is being adjusted downward to match the acquiring company culture/protocols. Not Good. Expect the same in 2018.”

“The ‘cycle’ can’t last forever.”

“I consider myself an innovator, I would love to work for an Organization that’s leading the future of the industry.”

“Multifamily, cyclically, it is at the end of its INCREDIBLY dynamic run, and it may suffer deep declines in many areas as prices may have far exceeded macroeconomic support. Conversely, some asset types (Office!) and markets are VERY WELL primed for gains due to the long period of tepid growth and a sense of noteworthy economic expansion. As such, the demands for RE professionals will continue to grow even as the hiring and employment concentration evolves.”

More thoughts and insights on the year ahead…in your own words:

Infrastructure Dreaming

  • Economy with new tax bill and new infrastructure plan will take off yet again.
  • Expecting development and Construction to slow down in the private sector. Public sector should pick up with the government stimulus. Developers would love to be in Construction during 2019, to pick up NOI after the expected slowdown…

Residential

  • Tax reform is the biggest obstacle in the low-income housing tax credit industry. Hopefully this will be settled shortly, and we can all react as needed.
  • I have my own business, which is doing well. So, I’m not a job seeker. I recruit real estate professionals, mostly in the affordable housing industry. I’m concerned about the impact of the tax reform bill on the value of low income housing tax credits, and the resulting effect on affordable housing production
  • Seeing signs of over-supply in the apartment market and job growth slowing; this is coupled with low wage growth. We may finally understand what the ceiling for rents looks like shortly.
  • In San Francisco bay area, new for-sale home building will slow down to a trickle as existing projects are absorbed through the year. Rising land prices and construction cost combined with slow city approval process will significantly impact delivery of new homes in 2019, further exasperating an already short supply of homes for sale. Apartment building will remain strong.
  • New England’s development just keeps growing from central Boston, biggest developments coming to Worchester MA, Biddeford ME, Everett MA, places undesirable because of distance and safety but all that 50-70k/year can afford now.
  • Major shortage in affordable housing. Need for construction lending at highest point it 10 years.

Hiring

  • Barbell with no mid-tier. Senior Talent not considered as too expensive.
  • Companies waste way too much time and never have much urgency after their best qualified clients get their first interviews ~ way too much times elapse between interviews and job offers… sad really! Often letting they’re best “fit” walk out the door.
  • I see the extreme being advertised. Too much required of the applicant to meet the requirements of the position.
  • Looking to get a job that provides stability and long-term growth.
  • Planning on staying in my current job.

Positive / Growth

  • Positive trends overall but finding opportunities and creating value takes more work. We’ll need a different set of resources (strong asset manager, deal leaders) to unlock asset potential.”
  • The 2016 Election changed everything. Now we have some hope in this business!
  • Just food for thought: Compensation increased for me as a result of accepting consulting projects in the real estate services sector. I also expect a further increase in compensation during 2018.
  • I think it will be a very good year for businesses. The cut to corporate taxes is going to help the economy tremendously.
  • Going to be a great year, thanks to the GOP tax cuts!!
  • Tax reform is a big big question mark. Nonetheless 2018 should be another great year as long as everyone stays focused/undistracted and does not get sloppy with internal controls.
  • Improving employment and free cash flow in the market will enhance the CRE outlook.
  • Expect the economy to improve
  • Economy will continue to grow as it has in 2017 due to a better business climate with fewer regulations, lower taxes and favorable interest rates.
  • Country, politically may be rocky; but my business is steady!
  • Continued growth in the marketplace with increased costs and expenses.
  • Continued growth in the industry
  • I am comfortable in my current position, but I am looking for something more challenging. I do not want to relocate
  • Hopefully C level jobs are available
  • Have not applied for a job since 1999
  • Good for business
  • I’m paid at least $20,000 less than my peers in my area. I’m going to change this in 2018.
  • I’m a smallish single family raw land developer and I expect the year ahead to be excellent. Our market is doing very well.
  • It can only get better, but I need new tools, new perspective and a stronger network.
  • My business is very stable, but keep eyes open.
  • I think this should be a great year across the board in the CRE sector
  • 2018 should be a solid year for real estate, and hence my part-time, geographically restricted job search …. Looking Forward To It!!
  • will be growth
  • The democrats are going to push the unions in right to work states like Florida! This will make product very expensive and no one will buy the product! Now we will lose many, many jobs and back on welfare!
  • Trump has the US Economy moving…end of story…
  • Should be a solid year for economic growth, and hence CRE.
  • If tax reform is passed, the economy should grow at its fastest pace in 15 years.
  • Should be a good one!
  • Increasing prosperity
  • Some career growth opportunities…, especially that lead to relocation for me and my family.
  • Plan to retire in 2018 after 40 years in commercial real estate
  • Should see growth.
  • Hopeful

Uncertainty

  • It’s a strange market in terms of velocity.
  • Real Estate is a very local business and as such there are still tremendous opportunities for growth in some areas while some areas have stabilized.
  • It’s going to be a challenging year. Great opportunities for good companies and great employees.
  • Uncertainty surrounding the economy. Will tax relief hurt real estate prices?
  • It will be an up and down year. I expect general sentiment to improve, but I also have a strong sense that there will be some sort of singular, disruptive event that reset the markets. I have no idea if that event will be a positive of negative for real estate.
  • 1st quarter will be negative. Wages are too low and regulations stifle profitability! Once Corporations begin hiring more people at higher wages and other company’s investments begin to make a difference by the 3rd & 4th quarter. Only then will Our Great US President Donald Trump’s efforts make a real financial impact in the positive for Middle and Lower classes. Usually results aren’t realized for the human markets for up to two years after policy changes. It’s better to be an investor rather than a worker.
  • Not sure how long the CRE high wave will last.
  • Like many of us we are keeping our fingers crossed for a strong Real Estate Market for 2018 but you never know what will happen. Where is our crystal ball when we need it? It has been relatively stable for us this year but come what may for the year ahead.
  • It will be a big year, but who knows in which direction.

Injustice

  • Trophy / Primary assets are past peak pricing. Secondary assets are stabilizing. Tertiary assets are drawing little attention and can’t move forward without real and widespread economic growth. The recovery so far is not evenly spread. We need real growth and real jobs in Middle America to sustain a meaningful recovery. The one we’re in looks like it was engineered by investment bankers.
  • It’s sad that you cannot secure a position based on credentials in this industry. It’s only about who you know.
  • I’m 65, worked in corporate real estate and construction over 30 years, have an MBA from top school and can’t get an interview. Age discrimination is REAL
  • I was a Development/Asset Mgmt. Analyst. My compensation increased 25% because I switched companies. My old company will not counter-offer over 10%. They had to hire a younger candidate, outside of Real Estate, and with less education to find my replacement. Seems like the larger companies with strict salary guidelines are hurting themselves.
  • Not good…I was laid off in 2016 from a very good job. I have struggled to find full employment, ever since. I am 54 and believe my age is becoming a factor that no one will admit to. I am currently doing a job that I did 30 years ago making less money than I did 15 years ago. I also work a part time job that I go to on my days off at my full-time job; I work seven days a week. Real estate management has turned out to be a poor career choice for me, it seems.
  • I think it is unfortunate that companies will not take a chance on a candidate with over 20 years experience and a master’s degree in real estate development, just because that person is living and working overseas currently. I have not heard a single word back from a corporation or firm since becoming a member in 2013 (with over 100 positions applied for). I either feel that the companies that advertise jobs on your website are not serious or they are too concerned about insignificant logistical issues and would rather hire someone that will require slightly less logistical planning. Still currently looking for 2018, with high hopes that a firm will speak with me regardless of logistical issues in which I have already worked through.

Negative

  • major crash due
  • The mix of players throughout the commercial real estate industry is an odd collection – you have the old guard who generally fell into real estate years ago by mistake as it was clearly not their first choice career… meanwhile these veterans don’t have the background to keep from feeling threatened daily by a new crowd who mostly have college degrees and confidence, and this new group certainly represents more “change” which the ’80’s & ’90’s style commercial real estate industry is famous for fighting and resisting at every step. More fun times are ahead!
  • The new Tax Law is going to have a serious negative impact on residential real estate due to deduction limits imposed on States (CA, FL, NY, NJ) that happen to provide the most tax revenue to the Federal Government and support to less prosperous states like LA, MS and AL.
  • The mix of players throughout the commercial real estate industry is an odd collection – you have the old guard who generally fell into real estate years ago by mistake as it was clearly not their first choice career… meanwhile these veterans don’t have the background to keep from feeling threatened daily by a new crowd who mostly have college degrees and confidence, and this new group certainly represents more “change” which the ’80’s & ’90’s style commercial real estate industry is famous for fighting and resisting at every step. More fun times are ahead!
  • The future is difficult to see. 1st quarter will be negative. Wages are too low and regulations stifle profitability! Once Corporations begin hiring more people at higher wages and other companies’ investments begin to make a difference by the 3rd & 4th quarter. Only then will Our Great US President Donald Trump’s efforts make a real financial impact in the positive for Middle and Lower classes. Usually results aren’t realized for the human markets for up to two years after policy changes. It’s better to be an investor rather than a worker. The cost of housing is a crime for the tenants. Many citizens are disenfranchised and homeless due to Corporations, Big Bank BAILOUTS and Wall Street crimes and great Recession of 2006-2017. There is a generation, ages 18 to 60 of middle and lower-class workers that have dropped out of the work force, because of the Great Recession. Families were ruined. Difficult to see their reactions to recent changes in American Corporate Dictatorships’ reinvestments and job creations for 2018. My suggestion is to retrain and educate them and include cheap housing.
  • The democrats are going to push the unions in right to work states like Florida! This will make product very expensive.
  • staying focused and on-task will continue to be a challenge with: – total dysfunction and chaos in the US – Brexit dysfunction in the UK and uncertainty in the EU – Aggressive Chinese expansion in the South China Sea and interference in western democracies – Russian “election”, expected aggression in neighboring countries, continued interference in western elections – North Korea… boom.
  • I think this year will be full of politics that will continue to be destructive to the first truly pro-economic president since Reagan. These disruptive forces are vindictive and stupid but are having the effect of slowing down the real change our “service” oriented economy needs to restore balance and bring back manufacturing and infrastructure jobs. Real estate will see deflation as interest rates creep. Places like Calif will continue to lose jobs as the IT industries find more welcoming environments for their employees and their corporate tax rates and regulations.
  • I expect 2018 to be a very tumultuous year for the real estate and mortgage Industries. I foresee large impacts on Fannie and Freddie that will Cascade throughout the industries.
  • I believe we are facing a headwind brought on by increased division of the political parties and resulting regulation.
  • I am the CFO of the United States subsidiary of a global design/build contractor. I worry that the current environment of uncertainty, particularly caused by the executive branch of US government (DJT), will negatively impact the US economy. Worse, I worry that his policies, and overall stupidity, will land the US in a war.
  • Expecting a big stock market correction after a spurt upwards; then a very slow recovery.
  • Expect to see more cooling in the market.
  • Constitutional crisis will disrupt all expectations
  • Concerned!
  • Bleak. No one hires the long-term unemployed / underemployed / self-employed.
  • Biggest concerns for industry in 2018. Sexual harassment – I believe that companies will be reluctant to hire females for several reasons – are they (the female) a plant and the new tax code if passed may seem to be tax relief for all, but (it’s) for the huge corporations.
  • As I just became a General Partner and the Chief Investment Officer of an investment fund, founded with Harvard classmates, I believe that continuing to seek a job through Select Leaders will be moot. However, I am most appreciative of the resource as no other website really concentrates on the needs of institutional real estate professionals. Regarding the future of the market… Multifamily is going to become a quite toxic asset in most areas/markets. Cyclically, it is at the end of its INCREDIBLY dynamic run, and it may suffer deep declines in many areas as prices may have far exceeded macroeconomic support. Conversely, some asset types (Office!) and markets are VERY WELL primed for gains due to the long period of tepid growth and a sense of noteworthy economic expansion. As such, the demands for RE professionals will continue to grow even as the hiring and employment concentration evolves.

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