CPN - January 2009 - (Page 13) Wanted: Top Talent H iring is down overall for the United States commercial real estate industry,as firms focus internally on running their businesses more effectively. But smaller and midsize companies, especially on the West Coast, are taking advantage of the market to snap up higher-level talent than they might be able to afford under other circumstances,according to Debra Barbanel, vice chairman & senior managing direcWHO’S HIRING tor for Ferguson Partners Ltd. (percent of companies hiring) Increased outsourcing by cor35% porate America has also conF Business Type F H tributed, offering opportuniF 30% F F F ties for facilities managers,genH P B Commercial Brokerage Services 25% eral services executives and F F F P B H H H asset managers. P J Construction/Engineering P B B 20% P P B B H H H J J J Asset management, in fact, B P P J J has become a big focus across 1 1 H Investment Management 1 15% P B B J J 1 property types as commercial H 1 F Commercial Mortgage Finance real estate owners seek to 10% B J J 1 1 1 retain and attract tenants. For P Private Equity the office market,the degree to 5% which this will be necessary 1 Real Estate Investment Banking 0% 1 will vary across the country, '01 '02 '03 '04 '05 '06 '07 '08 '09* depending on corporate America’s market preferences. Fergu35% son Partners Ltd. senior managProperty Type F J ing director & COO Wayne 30% F F J P P J B Costley Jr.stated that significant F J B Hospitality 25% F F P P J J B B declines in this market segment P B have not yet been felt, though J Multi-Family 20% F F P P P B H J J he warned of both impending F H Office/Industrial real and shadow vacancies. J H 15% P H H B H B The multi-family sector likeH F Retail wise will require a focus on 10% H B B H H occupancies and tenant retenP Seniors Housing 5% tion, though it is more stable than most, as the pullback in *Forecast 0% financing for home buyers has '01 '02 '03 '04 '05 '06 '07 '08 '09* resulted in more renters. Greater difficulties are Following the long period of strong performance, the biggest chalalready impacting the retail area, which will need not only leasing lenge across the board is finding quality asset managers. “In the last experts but also restructuring and workout talent. “Shopping center 10 years, a rising tide in real estate valuations resulted in asset manageowners should prepare for large value losses,” Costley said.“Regional ment being less valued by real estate investors,” noted president & senmalls and lifestyle/luxury shopping centers have felt the largest decreases.” Well-located urban-infill lifestyle centers and groceryior managing director James Dell’Olio. “The demand is now finding that there is a decade-long lost generation of asset management talent.” anchored properties have performed better, but the overall retail diffi- culties have caused a slowdown in industrial activity, as well. On the other hand,the hospitality sector has the advantage of experience facing adversity, as it tends to traverse down cycles every six to nine years, noted managing director David Mansbach.The focus is on brand differentiation and customer attraction, and top companies are recruiting sales, marketing and operations experts to achieve this, in addition to both junior- and senior-level asset managers. Hiring Methodology Data and observations are based on the results of hiring surveys conducted by Ferguson Partners Ltd. across all major real estate industry sectors, including commercial banking, insurance, commercial services and brokerage, mortgage finance, hospitality, investment banking, private development, pension advisory, REITs and seniors housing. For the purposes of this year’s survey, senior-level employees were defined as those whose compensation packages total $150,000 or more per year. Visit www.cpnonline.com/business management for more stories on managing your commercial real estate business. Worldwide Hiring Plans Europe: Many firms are shouldering excessive debt, diminished cash flows and falling property values, so “firms are looking to stretch assets, restructure finances and create a stabilized debt facility,” noted Ferguson Partners Europe Ltd. managing director Serena Althaus. They need strong asset managers, CFOs and COOs. Asia-Pacific: Asia’s distressed assets are starting to attract investor interest, especially in Japan, Australia, China, Hong Kong and Singapore, creating a need for acquisitions experts, according to Andrew Peck, managing director of Ferguson Partners Asia Ltd. in Hong Kong. Executives who are good at corporate mergers and acquisitions are also in demand in Asia. The Middle East, on the other hand, is just beginning to experience a real estate downturn and is laying people off. Americas: Layoffs have taken place in a number of U.S. firms, but some smaller companies are taking advantage of the greater availability of top-level talent, and in general there is a need for asset management expertise, as well as top-line operations and financial professionals. Canada and Latin America are performing more strongly, but real estate firms in those areas also are focused on experts in asset management, operations and finance. 13 www.cpnonline.com • January 2009 • COMMERCIAL PROPERTY NEWS http://www.cpnonline.com/businessmanagement http://www.cpnonline.com
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