In a recent survey of corporate real estate professionals at corporations globally, 81 percent reported that their base salary increased from 2015 to 2016 by an average of 4.6 percent. In addition, 75 percent real estate professionals projected further increases in 2017, according to a survey conducted by CoreNet Global and FPL Associates.
“Projected increases for 2017 are more conservative than we have seen in years past. This is consistent with what we are seeing across the real estate industry,” said Lindsay Pankratz, Survey Director at FPL Associates.
The average total annual cash compensation for a head of corporate real estate globally was $280,000 in 2016 compared to $265,684 in 2015, an increase of more than 5%. Since 2012, the average total annual compensation for head of corporate real estate has increased by more than 20 percent. In North America, the average total annual cash compensation was $292,000 in 2016, nearly 9 percent higher than a year earlier.
Overall, nearly half of participating companies reported an increase in annual cash bonuses; just 22 percent reported that annual cash bonuses had decreased.
“Corporate real estate is increasingly viewed as a key strategic resource that the corporation can leverage to achieve its business goals,” said Tim Venable, Senior Vice President at CoreNet Global. “Examples include higher levels of employee retention and attraction, a greater commitment to sustainability, lower energy costs, increased flexibility in uncertain times and reduced operational risk.”
For this year’s survey, 141 end user (occupier) members provided thorough responses, classifying them as participants. FPL gathered all of the responses, clarified additional information, as needed, from participants, and then analyzed the data to develop the summary report.
The companies represented a wide variety of industries, with most in the technology, financial services and insurance sectors. Others included energy, manufacturing, pharmaceuticals, business services, consumer products, and healthcare.
95 percent of participants’ internal CRE organizations currently have operations and/or staff located in the United States, 60 percent in Europe, and 52 percent in Asia.
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According to another report, changes in governmental policies and economic expansion in Vietnam has paved the way for growth in Corporate Real Estate (CRE). However, the profession is still nascent in the country.
“For example, green buildings are still not very common in Vietnam, though this might change with a greater influx of MNCs into the country. One concept that seems to have taken off and is expected to see gains is the notion of Co-Working. There are numerous co-working spaces in Vietnam, with Ho Chi Minh City seeing a flurry of activity and increased usage in this sector.”
The above is according to a finding by CoreNet Global examining the challenges and opportunities presented by Vietnam in its report titled, ‘Vietnam: A New Asian Tiger.’
As of now, however, CRE and facilities management are not widely understood in the local market and are typically viewed as property management services, which are transactional or building engineering services focused. The reason for dramatic growth in Corporate Real Estate (CRE) services in Vietnam is owing to several facets of economic expansion in the country:
Overall, the outlook for Vietnam is positive. A young population, a growing middle class, and a government keen on pushing the economy higher are all factors that will influence growth positively. As the economy develops and matures, the need for CRE to provide increasingly strategic guidance will grow as well.
Also read: In Asia, India and Vietnam Will See the Highest Salary Increase in 2017