Labor Shortage Plagues the Debt Markets
Increased activity in the debt markets has created a labor shortage over the last several months.
In the last year, the war for talent has intensified. Every industry is struggling to attract and retain talent, and commercial real estate is no exception. While there are several market sectors experiencing a dearth of available talent, the debt markets are facing significant challenges, according to Kent Elliott, a principal at RETS Associates.
“With stronger activity within the debt markets over the past several months, a significant demand for talent is beginning to emerge within this sector of real estate,” Elliott tells GlobeSt.com. “Rising activity within the debt markets has created an increasing demand for seasoned talent in this sector. As a result, mid- to upper-level employees are becoming more thoughtful in their job searches and weighing various elements in their compensation packages.”
While the COVID-19 pandemic was the catalyst for the overall labor shortage, Elliott says that isn’t the case in the debt markets. Rather, there has been sustained and organic growth in this field, which has led to demand for experienced candidates. “COVID’s impact was a lot less significant on the debt markets than it was on all other CRE sectors,” adds Elliott. “The debt markets have also been extremely busy in the last several years because of historically low interest rates and a robust appetite for investment in commercial real estate, which tends to be a more reliable category as compared to the stock market.”
Debt companies should also focus on budding young talent that can move up the ladder quickly. “Younger professionals should be given the opportunity to grow within their respective firms,” says Elliott. “A lack of growth opportunities could lead to these candidates being poached by other firms.”
RETS has received a surge of requests for experienced talent, according to Elliott, and he expects the demand to continue into 2022. “As a result, firms must apply creative solutions to successfully recruit and retain talent, including working with recruiting firms that understand the market and the people in it like we do,” he says.
Right now, however, talent has the upper hand in negotiations. “Within the debt markets, it truly is a candidate’s market,” adds Elliott. “Therefore, finding talent that meets specific criteria will cost employers more than before The Great Resignation.”