Real estate executives working for corporations globally are earning more according to a new survey.
Most (87%) saw compensation increase between 2017 to 2018 with an average rise of 5.3% and 80% are expecting an increase of around 4% for 2019.
The survey of participants in 143 companies (many Fortune 500) was conducted by CoreNet Global and FPL Associates.
Total annual remuneration, including long-term incentives, for a global head of corporate real estate was $385,000 in 2018, compared to $339,000 in 2017.
"Salary increases continue to be the predominant practice for CRE and other real estate sectors. The prevalence of bonus increases, however, continues to be split between firms indicating increasing awards (~50%) and no change from the prior year. We have found this is largely due to firms indicating that performance based incentives are falling at or near target," said FPL Associates.
Many of the respondents said that their role had become more of a strategic function within the corporations including workplace strategy and design, corporate finance, site location and often overall corporate branding.
This increased focus has helped boost the incomes of corporate real estate executives.
"We know that corporate real estate for the last several years has become an increasingly strategic function within the corporate hierarchy, which is why compensation levels have been consistently increasing year to year," said Tim Venable, Senior Vice President at CoreNet Global. "This year in particular, CoreNet Global completed FutureForward 2025, which is a projection of how the profession will continue to evolve and how CoreNet Global will respond. We believe that corporate real estate will become a broader function that encompasses the overall employee
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