The past several years have represented a period of strong performance and significant competition for talent among private real estate firms. This period translated into compensation levels that were meaningfully higher than historical run rates.
The private real estate industry is now contending with significant questions around inflation, interest rates, access to capital and underlying market fundamentals, causing many firms to revisit their investment strategy and capital sources. As firms adjust business plans, ownership structures and forecasted returns, private real estate compensation programs are also being reassessed and modified to ensure alignment with the company’s short- and long-term strategy and objectives.
Included in the report are four trends that we have observed in 2023 at private real estate firms:
- Increased use of non-promote LTI programs
- Expansion of co-investment programs
- Enhanced employment protections for key employees
- Increased need for competitive board compensation
To learn more about these topics, see the full report.
For additional information, contact Katie Gaynor.