Where is the Future CRE Talent Pool?

Joseph Ori, executive managing director of Paramount Capital Corp.

The booming CRE industry during the last five years has been great for investors and sponsors but has created a shortage of C-suite experienced leaders and junior level employees. CRE is a $7 trillion business in the U.S. and it must do a better job of creating, enabling and training a more agile and engaged workforce. It must also allow for a new wave of leadership in the industry as many of the Baby Boomer founders of REITs, private equity firms and institutional investors are over the age of 75 and will retire in mass in the next few years. CRE companies need to increase efforts to groom senior level personnel to take over the reins of these firms and also attract next-generation talent. These efforts should concentrate on retraining existing talent, recruiting junior level employees right out of college and diversifying senior leadership along with advisory and corporate boards.

CRE companies have also been slow to use the power of social media and new technologies to change business operations, marketplace perceptions and attract this next-generation talent. Many real estate companies today don’t recognize that today’s millennials and generation Zers have different expectations and aspirations, and work/life balance priorities than prior generations. These include; mobility and flexibility in work, use of mobile devices and data analytics, advancement potential and incentive compensation in employer real estate investments. Very few real estate firms show up on college campuses to recruit college graduates for entry-level positions, which is a big mistake in securing this next generation of talent.