The real estate industry is known for its diverse job sectors and lucrative career opportunities. As we delve into 2022, let's take a closer look at the compensation trends in this ever-evolving field.
Source of Compensation Data
Each year, the real estate consulting firm CEL & Associates releases its National Real Estate Compensation & Benefits Survey. This industry-standard survey provides valuable insights into pay statistics across 190 real estate positions in the United States. Conducted in partnership with the National Association of Office and Industrial Properties (NAIOP) and the National Apartment Association (NAA), the survey is highly respected and reliable.
The survey offers two formats for accessing the results. A comprehensive 400+ page paper covering salary trends, bonus pay structures, and detailed breakdowns by company type, location, and size is available for purchase. Alternatively, a free summary of the survey results can be downloaded.
Real Estate Compensation in 2022
In this article, we will focus on the most relevant information regarding compensation in the real estate industry for positions such as Analyst, Managing Director, and everything in between. We'll explore compensation trends in industrial, office, retail, and multifamily-focused firms across various roles, including acquisitions, asset management, property management, and development.
The total pay, which includes salary and bonus, has been calculated for each position. Additionally, we will highlight the percentage change in total compensation from 2013 to 2022 and from 2020 to 2022 for each role.
Summary of 2022 Pay for Office and Industrial Real Estate Professionals
Professionals working in office and industrial real estate experienced an average compensation increase of 7.43% in 2022. This growth ranged from 5.5% to an impressive 13.47%, setting a new record high.
Senior roles in acquisitions and asset management boasted higher bonus percentages compared to junior positions. For a senior analyst/associate role in acquisitions, the bonus percentage reached 30%. Asset management followed closely behind with junior role percentages of 27% and 29%.
Asset management professionals witnessed the most substantial change in total compensation, with a 9.45% increase. Property management professionals experienced a 7.94% increase, while development and acquisitions saw growth rates of 6.75% and 6.02%, respectively.
Summary of 2022 Pay for Retail Real Estate Professionals
Retail professionals witnessed a total compensation increase ranging from 5.57% to 7.56% in 2022. Acquisitions led the pack with the highest average percentage change in compensation, at 7.24%. Property management, asset management, and development roles followed closely, with growth rates of 7.13%, 7.01%, and 7.0%, respectively.
The percentage change increase in total salary nearly doubled compared to the previous year, likely due to high inflation in the middle of 2022. Retail senior positions continued to enjoy the highest total compensation compared to other real estate sectors. Junior positions kept pace with their senior counterparts, enjoying growing compensation benefits.
Summary of 2022 Pay for Multifamily Real Estate Professionals
In the multifamily sector, the bonus as a percentage of salary remained stable compared to 2021. However, multifamily professionals still enjoyed higher average bonus percentages than their retail counterparts, though office and industrial sectors ranked highest. Base salaries in the multifamily sector were comparatively lower than in other sectors.
Early-career professionals in multifamily acquisitions, asset management, and development can expect total compensation ranging from the high-five figure range to the middle-six figure range. Bonus percentages typically account for around 21% of their total compensation.
Changes in Real Estate Salary and Bonus - 2022 vs. 2021
In 2021, the real estate industry witnessed its fastest rate of compensation growth in five years. This trend continued in 2022, with an average total compensation increase of 7.31%. The annual inflation rate reached 6.5%, peaking at 9.1% in June. Consequently, base salaries saw significant increases compared to the previous year.
Asset management professionals in the office and industrial sectors experienced the highest average growth in total compensation, with a 9.45% increase from 2021 to 2022. On the other hand, office and industrial acquisitions saw a more modest growth rate of 6.01% in average compensation.
Changes in Real Estate Salary and Bonus - 2013 vs. 2022
Since 2013, the total compensation in the real estate industry has increased by an average of 30.6%. The scale of change across all positions (high-end) from 2016 to 2022 is illustrated below. It is worth noting that the calculations for total compensation change go back to 2013, while data for 2015 is unavailable.
Conclusion on 2022 Real Estate Pay
The year 2022 marked a record-breaking period for increases in total compensation within the real estate industry. This survey reveals that compensation continues to grow at an accelerated rate. The industry welcomes both entrepreneurial spirits and employees, offering benefits in both base and additional compensation.
Current professionals in acquisitions, development, asset management, leasing, and property management must keep a pulse on the salary trends in the industry. We hope that the data provided in this report will serve as a valuable resource for negotiating real estate salaries.
