An overwhelming majority 83% of those who manage corporate real estate (CRE) portfolios saw increases in their base salary in 2011, according to a global compensation study conducted by CoreNet Global and FPL Associates. This compares to a year earlier when 64% reported an increase in base salary in 2010.
In addition, 81% of the respondents expect to receive increases again in 2012.
Taken as a key economic indicator for the CRE industry, the survey results bode well for 2012.
The growth in compensation correlates to greater levels of investment and development activity among corporate real estate departments. From 2010 to 2011, 50% of the respondents reported increases in acquisition activity, compared to 43% a year earlier (2009 to 2010). And, from 2010 to 2011, 36% reported increases in development activity, compared to 32% a year earlier (2009 to 2010).
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.
Between 2010 and 2011, 83% of participants received an increase in their base salary.
Globally, corporate real estate executives realized an average increase of 5% in base salary in 2011. Between 2011 and 2012, a large percentage of participants (over three-quarters) expect to receive an increase in their base salary. The average increase is expected to be 4% in 2012.
"After several years of tracking this information, we do see a clear upward trend in across the board compensation for those who manage corporate real estate globally," said Angela Cain, CEO of CoreNet Global. "As the survey points out, these increases follow gains in activity as corporations enhance and consolidate their real estate portfolios."
"Calendar year 2011 proved to be a solid year for corporate real estate, and as such, professionals are expecting to see commensurate gains in compensation. Although bonuses are anticipated to increase and demand for talent has intensified, compensation payouts still lag pre-recession levels," said Jeremy Banoff, Senior Managing Director at FPL.
CoreNet Global and FPL conducted the survey in the third quarter of 2011 among 288 corporate end users of commercial real estate. The respondents represented a range of industries and global regions. The average number of employees in the companies represented in the survey is 50,306 and the average number of employees involved in internal corporate real estate was 137.
CoreNet Global is the world's leading association for corporate real estate (CRE) and workplace professionals, service providers, and economic developers. Our more than 7,000 members, who include 70% of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally.
For more information, visit www.corenetglobal.org