Earning Power Increases For Corporate Real Estate Professionals

ATLANTA, April 6, 2018 /PRNewswire/ -- In a recent survey of corporate real estate executives at corporations globally, 80% reported that their base salary increased from 2016 to 2017 by an average of 4.6%.  In addition, 76% projected further increases of roughly 4% on average in 2018, according to a survey conducted by CoreNet Global and FPL Associates.  

"Slightly fewer participants' project salary increases in 2018 and the size of these projected increases are conservative compared to increases in 2017.  This is consistent with what we are seeing across the real estate industry… an optimistic yet cautious approach," said Lindsay Pankratz, Survey Director, FPL Associates.

Total annual remuneration, including long-term incentives, for a global head of corporate real estate was $339,000 in 2017, compared to $315,000 in 2016.  

The function of corporate real estate is an increasingly strategic function of the corporation – directly tied to many others, including workplace strategy and design, corporate finance, site location and often overall corporate branding.

Corporate real estate executives have strategic responsibility for their corporations' total real estate footprint of owned and leased space; they generally manage portfolios with millions of square feet property spanning multiple continents. Corporate real estate touches all classes of property, land and buildings such as: office facilities, data centers, manufacturing facilities, logistic centers, corporate headquarters, distribution facilities, retail stores and hotels. 

"We've been seeing these increases for several years. Because the corporate real estate function is tied to so many other operations within the corporation, we are seeing that C-Suite level executives are placing more strategic importance on how real estate is managed. In effect, the corporate real estate professional is becoming a more valued, and compensated, member of the organization," said Tim Venable, Senior Vice President at CoreNet Global.

Survey Methodology

In the third quarter of 2017, FPL worked with CoreNet Global to develop a questionnaire for the purpose of gathering compensation information relevant to internal CRE organization employees in the current market.    

For this year's survey, 185 end user (occupier) members provided thorough responses, classifying them as participants.  

The companies represented a wide variety of industries, with most in technology and financial services.  

93% of participants' internal CRE organizations currently have operations and/or staff located in the United States, 65% in Europe, 57% in Asia, 50% in Canada, 45% in Latin America and 43% in Australia/New Zealand.

SOURCE CoreNet Global