In commercial real estate, succession planning often focuses on future CEOs or retiring senior partners. But the most vulnerable and frequently overlooked layer of leadership is in the middle.
Mid-level leaders such as regional heads, asset managers, controllers, and development leads are the ones who turn strategy into action. They mentor teams, hold institutional knowledge, and solve problems before they reach the executive level. Despite their importance, many firms fail to plan for their succession.
Why This Matters Now
With leaner teams, shifting market dynamics, and increasingly complex operations, real estate firms cannot afford to be reactive about talent. Mid-level succession planning offers a way to be proactive by identifying rising talent, providing the right exposure, and creating clear advancement paths.
It is not just about retaining people. It is about building a strong leadership pipeline that can guide the business through the next cycle. As more senior leaders begin to retire or move into strategic roles, the need for prepared successors in the middle becomes even more urgent.
Mid-Level, Maximum Impact
Planning at the mid-level is not just about naming potential replacements. It is about developing people so they are truly ready for bigger roles. This layer often holds untapped potential: an asset manager who could lead a region, a finance lead ready to take on broader strategy, or a development director who can oversee a portfolio.
But without intentional development, these individuals may remain stuck in execution mode. Firms can unlock their potential through stretch assignments, rotational programs, and exposure to high-level decisions. Helping them think like enterprise leaders rather than just functional experts can improve engagement and retention.
An Opportunity to Rethink Structure
Succession planning also creates a chance to revisit organizational structure. As the industry changes with more technology, new asset types, and evolving investor expectations, firms should ask:
- Are current roles aligned with business needs?
- Are there unnecessary handoffs or silos?
- Should some responsibilities be redistributed?
Reevaluating roles during succession planning helps firms adapt to the future while supporting real career development.
What CRE Firms Can Do
Leading organizations are taking the following steps:
- View succession as a portfolio, not a one-time event. Map critical roles and successors with a three- to five-year outlook.
- Separate performance from readiness. Use this insight to design development plans.
- Increase visibility into talent. Avoid relying solely on informal recognition from leadership.
- Build a talent bench for each role. Even a short-term vacancy can cause strain.
- Protect institutional knowledge through systems and planning.
- Follow through on development plans with real investment in training.
Final Thought
Succession planning is not just about who takes the top job. It is about ensuring stability and continuity across all levels that matter. In commercial real estate, that very much includes the middle. Now is the time to start focusing on it.
For More Information Please Contact:
Michelle Yelaska
Management Consulting
[email protected]