The plummeting volume of commercial real estate sales is hitting the personal bank accounts of those in the investment sector.
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Bonus payouts for CRE investment professionals fell 12% year-over-year during 2023, according to a new poll from Jackson Lucas that gathered data from 1,574 respondents.
The decline in bonuses was offset by a 3% overall increase in salaries, Jackson Lucas found, resulting in an overall 3% decline in pay for investment professionals. Real Estate Alert first reported the poll’s findings.
The report broke it down by types of roles within the sector, with project developers and managers seeing the sharpest year-over-year drop. That segment last year averaged a 48% decline in their bonuses, with last year's payouts averaging $31.5K less than in 2022.
Bonuses for chief operating officers were down 47%, or roughly $180K, from 2022.
Only two categories saw their bonuses increase. Regional assessment managers increased by 6%, while senior development executives rose by 16%.
The decreases are a result of a plunge in the number of commercial transactions in 2023. Transactions were down 51% year-over-year last year, with just $374.1B in transactions, according to MSCI.
Bonuses and compensation are cited by employees as reasons for looking to switch jobs, Bisnow reported in January.
“The reaction is, there aren't a lot of great places to go. It’s not like these other firms are paying great bonuses,” Jackson Lucas Founding Partner Chris Papa told Bisnow. “I think people are looking to make moves to firms that maybe are a little better positioned, maybe don’t have as many office assets in their portfolio.”
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