by Brianna Crandall — February 27, 2017 — In a recent survey of corporate real estate (CRE) executives at corporations globally, 81% reported that their base salary increased from 2015 to 2016 by an average of 4.6%. In addition, 75% projected further compensation increases in 2017, according to a survey conducted by CRE professionals association CoreNet Global and FPL Associates.
Lindsay Pankratz, survey director at FPL Associates, pointed out:
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.
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%. In North America, the average total annual cash compensation was $292,000 in 2016, nearly 9% higher than a year earlier.
Overall, nearly half of participating companies reported an increase in annual cash bonuses; just 22% reported that annual cash bonuses had decreased.
Tim Venable, senior vice president at CoreNet Global, stated:
Corporate real estate is increasingly viewed as a key strategic resource that the corporation can leverage to achieve its business goals. 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, which FPL gathered and 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. A full 95% of participants’ internal CRE organizations currently have operations and/or staff located in the United States, with 60% in Europe, and 52% in Asia.