5 Biggest Trends In CPM Member And Candidate Compensation In 2016
The commercial real estate industry is home to a varied array of compensation. This past July, IREM conducted a study on trends in the salaries of CPM Members and Candidates across the United States and Canada in 2016. The following are five of the most intriguing discoveries.
1) Factors Determining Bonus or Commission
Those surveyed who received a commission or bonus were asked to report all elements used to determine the specific amount paid. The company’s overall financial performance was listed as the most common factor, with 52% of CPM Members and 38% of CPM Candidates stating it accounted for their bonuses. Coming in at No. 2 and No. 3 were the financial performance of the portfolio or properties (39% and 42.6%) and whether specific portfolio/property goals were met that year (41.1% and 39.2%).
2) Most Base Salary Changes Were Salary Increases
The majority of those surveyed in the U.S.F — 52.7% of CMP Members and 48.9% of CPM Candidates — received a 1% to 5% increase in salary from 2015 to 2016. Twenty-five percent of CPM Members and 17% of CPM Candidates had no change in salary, while 17% of CPMs and 29% of CPM Candidates had a greater than 6% increase. Very few had a decrease in compensation.
Similarly, 50% of Canadian CPM Members and 48.6% of Candidates had a 1% to 5% salary increase, while 12.8% of CPM and 18.9% of Candidate Members received even greater increases. About 29% to 30% of CPM Members and Candidates had no change in their base compensation.
3) Coasts Make The Most
CPM Members and Candidates along the coasts — primarily the Pacific Northwest, California, Mid-Atlantic and Northeast — earn the largest amounts of money. CPM Members average a total compensation of $145,177 in the Northeast/Mid-Atlantic, while candidates receive $112,097. Median compensation runs at $125k and $90k, respectively.
Similarly, Eastern Canadian CPM Candidates and Members — those in New Brunswick, Ontario, Quebec, Nova Scotia, and Newfoundland and Labrador — earned the highest compensation, with $138,972 and $92,026 as their average total pay and $132k and $86,563 as the respective medians. These provinces stand in stark contrast to Western Canada, where the averages are $121,621 and $88,952, and median total compensation figures are $107k and $85,350 for those in Manitoba, Alberta, Saskatchewan and British Columbia.
These areas may command the highest salaries, but be wary of higher rents and costs of living.
4) American Investment Company Employees Make The Most Money
American CPM Members and Candidates who work with investment companies, REITs, and private owners or investors also earn the biggest base and total compensations. CPM Members earn a total amount of $206,503, $162,270 and $162,645 for each type of organization, while Candidates receive $116,360, $96,040 and $113,042, respectively. Nonprofit employees receive the least compensation, with averages totaling $107,037 for CPM Members and $75,321 for Candidates.
5) The Type Of Property You Manage Matters
The highest compensation for CPM Members and Candidates is earned by those who work with conventionally financed apartments. Total compensation for CPM Members works out to $177,219, while Candidates typically receive an average of $109,365. Condos and co-ops come in at sixth place, with average pay resting at $128,236 and $90,288 for CPM Members and Candidates, respectively. Canadian CPMs, on the other hand, receive their highest compensations from office buildings ($154,568), with conventionally financed apartments in second place.
To learn more about Bisnow partner IREM, click here.