The commercial real estate (CRE) industry has faced a tough year, but signs of recovery are emerging as the year closes, according to BisNow.
With two interest rate cuts in the U.S. and more expected, the market outlook is improving, and businesses are gradually gaining confidence after the uncertainty surrounding events such as elections.
Hiring activity has picked up in the industry during the second half of 2024, showing a marked improvement compared to last year and the earlier months of this year. However, experts caution that it will take more time before the industry sees significant shifts in compensation and hiring strategies.
According to new data, there has been a 41% increase in management role postings and notable growth in financial and analyst positions as well.
Large-scale hiring across the industry remains cautious though, with many companies still dealing with the long-term impact of the pandemic and budget cuts.
Hiring is primarily focused on roles that help companies manage existing assets, such as asset and portfolio management, rather than new development or deals.
Despite a slight market recovery, compensation remains a challenge. Many employees feel underpaid after years of tight budgets, leading to potential turnover if companies don’t address these concerns.
While bonuses are expected to stay stable, top performers may see slight increases.
The office leasing market, in particular, has shifted strategies to focus on capital preservation, making experienced asset managers more in demand.
As companies prepare for a full market recovery by 2026, the pressure is on to manage retention and keep top talent from leaving.
The CRE industry is now focused on maneuvering through current market conditions, with hiring likely to gain momentum later in 2025 or early 2026.
