Corporate real estate professionals are expecting to earn more in 2018 than last year but the year-over-year rise may moderate.
A survey by conducted by CoreNet Global and FPL Associates reveals that 80% of executives in corporations globally received an average base pay rise of 4.6% in the year from 2016 to 2017, but 76% are expecting around 4% this year.
"Slightly fewer participants' project salary increases in 2018 and the size of these projected increases are conservative compared to increases in 2017. This is consistent with what we are seeing across the real estate industry… an optimistic yet cautious approach," said Lindsay Pankratz, Survey Director, FPL Associates.
Job function is rising, so is compensation
Managing the real estate assets of a large corporate is becoming an increasingly important part of the business. It’s directly tied to many other parts of the corporation’s strategic function, including workplace strategy and design, corporate finance, site location and often overall corporate branding.
For that reason, a global head of corporate real estate saw average compensation including long-term incentives, rise to $339,000 in 2017 from $319,000 in 2016.
"We've been seeing these increases for several years. Because the corporate real estate function is tied to so many other operations within the corporation, we are seeing that C-Suite level executives are placing more strategic importance on how real estate is managed. In effect, the corporate real estate professional is becoming a more valued, and compensated, member of the organization," said Tim Venable, Senior Vice President at CoreNet Global.
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