November 30, 2016
In this edition of The Hiring Squad, Kent Elliott, principal at RETS Associates, a leading national executive search and staffing firm that focuses specifically on the real estate industry, reveals a second wave of results from the firm’s fifth annual survey of financial analysts.
RETS recently surveyed 239 financial analysts working in the U.S. commercial real estate industry, and has identified several employment trends. The below insider information focuses on which sectors these future leaders want to grow into, and provides career planning advice to financial analysts based on insights revealed in compensation trends.
Interest in Multifamily and Industrial is Gaining Speed
Each year, RETS surveys financial analysts to uncover which CRE sector respondents are most interested in pursuing as they grow in their career. In 2016, financial analyst preference for moving into the multifamily sector increased by a sharp 5.8 percent compared to 2015 – which is more growth than any other sector. This closed the gap as the third-leading preference behind office, which has remained steady in second place, following the leading preference of being a “generalist.”
Close behind multifamily, financial analysts demonstrated most growth of interest in moving into the industrial sector, with an increase of 2.2 percent year-over-year. According to Elliott, this growing preference to work in the industrial sector is attributed to the spike in industrial and warehousing demand nationwide.
Once You Become a “Master,” It’s Time to Move On
Compared to 2015, this year’s financial analyst survey proved that there is the greatest growth in mean net salary for analysts who hold masters degrees and have three-to-five years of overall experience.
These core three-to-five years represent the peak of the financial analyst salary bell curve, suggesting diminishing career returns beyond that cohort. Today, RETS advises candidates to move on to their next opportunity to avoid flatlining a career. According to Elliott, natural next steps for a financial analyst would be to pursue a mid‑level position in acquisitions, development or asset management.
Read a Q&A with Kent about getting started in CRE here.