WASHINGTON, DC-An overwhelming majority of commercial real estate executive respondents—83%—in a survey to be released this week report that their base salary compensation rose 5% in 2011. This compares to a year earlier when 64% reported an increase in base salary in 2010. The survey, conducted by CoreNet Global and FPL Associates, focused specifically on the demand side—that is, executives at companies that managed corporate real estate operations, CoreNet’s vice president of strategic communications Richard Kadzis tells GlobeSt.com. “The next survey we do will focus on the supply side,” Kadzis says.
The survey, which CoreNet provided to GlobeSt.com in advance of its release, provides an interesting glimpse into the growing importance corporate real estate is having at many firms.
Around the financial crisis, companies start to rely more and more on their internal real estate operations to add value to the company, Kadzis explains. “Space reduction, cost savings, sustainability—these all were seen as important to the bottom line, especially if they also enhanced productivity,” he says.
Corporate real estate execs delivered on this call for action, Kadzis continues—and are being rewarded for it now with raises. “This survey validates that corporate real estate executives have become trusted advisors to a firm and are being paid accordingly.”
According to the survey, 81% of the respondents expect to receive increases again in 2012. Also in 2010 the percentage of survey participants that received a larger cash bonus than in 2009 more than doubled those that received a decreased payout over the same time period.
By comparison, fewer—16% of the participants—anticipate receiving a decreased payout in 2011 (when compared to 2010) than the 23% that received a decreased payout between 2009 and 2010.
The report also showed that salaries can range significantly, depending on the industry in question. According to the survey, corporate real estate executives in the business service/consulting industry can expect to receive an average salary of $360,167. Those in the 75th percentile in this sector receive $423, 500 and in the 25th percentile, $309,250.
In the construction industry those numbers are $152,072 (average), $165,109 (75th percentile) and $145,250 (25th percentile).
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