Jones Lang LaSalle
USA 12 08 05
SALARY SURVEY: WHERE THE BUCKS STOP
Peter Slatin
Real estate people love to discuss and dissect a disconnect. Last year, in our review of Specialty Consultants' annual executive compensation survey, the most apparent disconnect was the lackluster performance of real estate salaries despite the stellar performance of real estate investment.
Not this year.
"We did see some hefty increases" in year over year compensation, says Specialty Consultants vice president Michael J. Uzyak.The latest survey, which had a whopping 50% participation rate, reviewed responses from hundreds of senior and upper-level management executives with base salaries beginning in the mid $70,000 range. Each position reported on also drew on at least 50 respondents.
Just as the entire real estate industry is caught up with concerns about whether values have peaked after their long runup, salaries may be at the same happy place, cautions Uzyak.: "we're probably looking at a real plateau in base salaries across the board."
If a plateau is at hand, it is perhaps because the mountain has been scaled. "It's a situation where we are almost at full employment as far as management talent," declares Uzyak. "Anybody any good is working." As a result, he adds, "Increases based on luring people from the competition."
That can get interesting for prospective hires. The search for qualified talent is leading organizations to strike arrangements with new recruits that include "a lot more equity participation in individual deals and corporate profits" – and such deals are being made for staff level positions that typically "don't have anything to do with individual projects," says Uzyak.
The industry sector where gains have been strongest – home building – is also cooling off the most rapidly, the survey found – although cooling off is a relative term: "Home building has leveled off a bit," notes Uzyak. "Salaries are not increasing as rapidly as they had been.
"Not surprisingly, the next best area in which to be seeking work in investment and development: retail. "It's doing very well," says Uzyak. "It's second in terms of compensation growth." He also reports a "nice pop" in office and industrial salaries, although this is largely attributable to the continuing strength of the industrial sector.
On the slow side, reflecting concern about the heated condominium conversion market, is the multifamily industry. In asset and property management generally, says Uzyak, "compensation is not going up as strongly" as it is in the rest of the real estate universe, especially in finance and investing. In that group, jobseekers are "sitting very nicely in the middle of all the activity that's going on."
USA 12 08 05
SALARY SURVEY: WHERE THE BUCKS STOP
Peter Slatin
Real estate people love to discuss and dissect a disconnect. Last year, in our review of Specialty Consultants' annual executive compensation survey, the most apparent disconnect was the lackluster performance of real estate salaries despite the stellar performance of real estate investment.
Not this year.
"We did see some hefty increases" in year over year compensation, says Specialty Consultants vice president Michael J. Uzyak.The latest survey, which had a whopping 50% participation rate, reviewed responses from hundreds of senior and upper-level management executives with base salaries beginning in the mid $70,000 range. Each position reported on also drew on at least 50 respondents.
Just as the entire real estate industry is caught up with concerns about whether values have peaked after their long runup, salaries may be at the same happy place, cautions Uzyak.: "we're probably looking at a real plateau in base salaries across the board."
If a plateau is at hand, it is perhaps because the mountain has been scaled. "It's a situation where we are almost at full employment as far as management talent," declares Uzyak. "Anybody any good is working." As a result, he adds, "Increases based on luring people from the competition."
That can get interesting for prospective hires. The search for qualified talent is leading organizations to strike arrangements with new recruits that include "a lot more equity participation in individual deals and corporate profits" – and such deals are being made for staff level positions that typically "don't have anything to do with individual projects," says Uzyak.
The industry sector where gains have been strongest – home building – is also cooling off the most rapidly, the survey found – although cooling off is a relative term: "Home building has leveled off a bit," notes Uzyak. "Salaries are not increasing as rapidly as they had been.
"Not surprisingly, the next best area in which to be seeking work in investment and development: retail. "It's doing very well," says Uzyak. "It's second in terms of compensation growth." He also reports a "nice pop" in office and industrial salaries, although this is largely attributable to the continuing strength of the industrial sector.
On the slow side, reflecting concern about the heated condominium conversion market, is the multifamily industry. In asset and property management generally, says Uzyak, "compensation is not going up as strongly" as it is in the rest of the real estate universe, especially in finance and investing. In that group, jobseekers are "sitting very nicely in the middle of all the activity that's going on."
posted by Jones Lang LaSalle NJ News Blog at 5:03 PM
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