Align incentives with firm growth, offer leadership roles, and support professional development to retain top real estate executives.
Employee loyalty and executive retention are critical in every industry, but in real estate, property management, and asset management, it often takes more than traditional benefits like health care and retirement plans to keep high-ranking leaders engaged and productive.
Top executives in these sectors respond most effectively to total rewards packages that directly tie their incentives to firm growth, portfolio returns, and investor outcomes. By blending financial incentives — such as co-investment, carried interest, and performance bonuses — with non-financial strategies like career growth, flexibility, and visible recognition, real estate firms can create a culture where senior leaders feel valued, empowered, and motivated to stay for the long term.
Below are some practical, industry-aligned strategies that successful real estate organizations use to motivate and retain their top talent.
How to motivate and retain top talent
Performance-based equity and promote participation
Firms increasingly invite executives to co-invest in deals, aligning personal capital with portfolio success. Carried interest or “promote” structures reward value creation beyond internal rate of return (IRR) hurdles, while phantom equity or profits interests can offer upside potential without diluting ownership.
Deal-specific, operational bonuses and long-term incentive plans with clear metrics
Targeted incentives for sourcing and closing high-quality acquisitions, refinancing, or successful dispositions help focus efforts on growth. Bonuses tied to leasing milestones, occupancy gains, and net operating income improvements directly connect compensation to day-to-day asset performance. Development and repositioning project bonuses further reward on-time, on-budget execution.
Multi-year incentive plans, often measured by metrics such as IRR, assets under management (AUM) growth, fundraising targets, and exceeding underwriting assumptions on asset sales, can also drive strong results.
Recognition and ownership of results
Beyond compensation, senior leaders stay engaged when entrusted with direct responsibility over regions, portfolios, or business units — and when their achievements are publicly acknowledged.
Career advancement and succession opportunities
Clear paths to partner, principal, or C-suite roles keep top performers invested in the firm’s future. Empowering them to lead new strategies, geographic expansions, or funds can reinforce their long-term commitment.
Flexibility and professional development
Executives increasingly value enhanced leave options, flexible schedules, and sabbaticals. Support for leadership training, executive coaching, and participation in industry associations signals a firm’s commitment to their personal and professional growth.
Investing in an executive’s desire to achieve an advanced degree like a MBA further reinforces that commitment, offering long-term career development and deepening loyalty.
Recruitment trends to watch
Executive recruitment in commercial real estate appears to be shifting toward values-driven leadership. Increasingly, firms seem to be weighing cultural fit and traits like humility, integrity, and generosity alongside technical expertise.
Candidates who can build trust, navigate uncertainty, and foster inclusive environments are often seen as well-suited for high-stakes roles involving strategic decisions and investor engagement.
There also seems to be a move away from purely operational roles toward growth-focused positions in capital deployment, investor relations, and strategic expansion — suggesting a broader industry interest in leadership that can drive innovation and long-term value.
How CLA can help
CLA delivers tailored solutions that support executive recruitment, succession planning, and organizational design. We help real estate firms build leadership teams equipped for growth, expand into new markets with confidence, and structure incentives that align talent with long-term strategy. Our collaborative approach and deep industry insight can strengthen your firm’s ability to attract, retain, and empower senior talent.