- CRE firms are reversing staffing cuts made during the downturn, with 3.5 times more companies to increase headcounts in 2025 than to cut them.
- The hiring surge is driven by higher transaction volumes, CEO succession at REITs, and growth in mid-level finance, asset management, and property management positions.
- Salary boosts are expected across all levels, with entry- and mid-level roles seeing the biggest hikes. Executive salaries are projected to rise by 3.2% to 3.4% on average.
- Despite this growth, industry experts don’t anticipate large-scale hiring expansions until 2026.
After enduring sluggish transaction volumes, hiring freezes, and layoffs over the past few years, commercial real estate (CRE) firms are beginning to rebuild their workforces.
According to new research from Ferguson Partners, 2025 is set to be a year of growth in the CRE sector, with firms much more likely to hire more than to reduce staff.
Rising deal volumes, CEO succession plans at major firms, and a surge in mid-level roles—particularly in finance, asset management, and property management—drive the demand for talent, per Bisnow.
Reversing Trends
The shift in hiring trends comes after years of retrenchment, where CRE firms struggled with declining revenues caused by higher interest rates and uncertainty over the future of office spaces.
However, as the industry shows signs of recovery, the number of firms planning to increase headcount in 2025 is 3.5 times higher than those expecting to cut staff, according to Ferguson Partners’ survey of 170 CRE firms in October and November 2024.
“We’re seeing hiring activity across the board, with the most significant growth at the mid-level and executive ranks,” said Graham Beatty, President of Ferguson Partners. “The sector is showing signs of life, especially as executive hiring returned in the final months of 2024.”
Growing Mid-Level Demand
The greatest surge in hiring is occurring at the mid-level, particularly within finance, accounting, asset management, and property management roles.
As deal volumes increase and firms look to strengthen their leadership teams—particularly at REITs and private equity firms—companies fill more roles in these key operational areas.
Executives also appear to be back in demand, especially with CEO succession mandates at large firms. However, despite the uptick, the CRE job market remains cautious overall, and industry recruiters predict firms won’t embark on major expansion plans until 2026.
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Fewer Entry-Level Jobs
While mid- and senior-level hiring is on the rise, entry-level positions have continued to fall over the past two years as firms grappled with reduced revenues and uncertainty around the future of office space.
Despite the improvements in hiring activity, entry-level job openings are expected to remain few and far between as companies seek to stabilize their operations and focus on more senior roles.
Higher Salaries Expected
Salaries in the CRE sector are also poised to go up in 2025. Over half of public firms surveyed expect salary hikes at the executive level, while 80% of both public and private firms plan to raise salaries across all levels.
The average expected salary increase is projected to range from 3.2% to 3.4%, depending on employee seniority.
Private firms, in particular, anticipate widespread salary increases, with 77% of firms planning boosts across the board. Notably, half of those firms are also expecting to raise executive salaries.
Bonus Pools
While salary growth is anticipated, bonus pools are expected to remain consistent with 2024 levels. Public companies are funding their bonus pools at or above target levels for 2024, with 82% of firms maintaining similar bonus structures for 2025. In contrast, 68% of private firms have done the same.
However, sector performance is influencing bonus expectations. Retail sector respondents are the most optimistic, with 35% expecting bigger bonuses in 2025. Meanwhile, industrial firms, still recovering from a post-pandemic boom, anticipate smaller bonuses, with only 29% expecting increases.
Challenges Persist
While the CRE job market shows signs of recovery, the industry continues to grapple with challenges related to capital access, cost control, and inflationary pressures. According to Charlie Apfelbach, Managing Director at Ferguson Partners, these challenges impact employee compensation.
“Rising operating costs and capital deployment issues are contributing to the complexity of compensation strategies,” Apfelbach said. “Despite these hurdles, we expect to see continued hiring activity, especially as firms begin to ramp up for the longer-term recovery.”
Cautiously Optimistic
As the commercial real estate sector recovers in 2025, hiring is expected to grow, particularly in finance, asset management, and property management roles.
While salary increases and improved hiring prospects are encouraging, the industry still faces challenges stemming from inflation, capital accessibility, and post-pandemic adjustments. CRE firms are cautiously optimistic, but large-scale expansion is unlikely until 2026.
In the meantime, job seekers in mid-level and executive positions can expect a more favorable market, with salary increases and more opportunities on the horizon.