Above: photography by Liz West.
Corporate pay still rising
According to a CoreNet Global report that surveyed 275 companies that lease or own corporate real estate, 64% of senior level corporate real estate and workplace executives reported an increase in their base salary last year with 74% expecting another increase in this fiscal year.
Pay increases are at reduced levels from years prior and the average reporteed base salary for head of corporate real estate is $175,000 with additional pay and bonuses averaging $45,000 per year. Of those surveyed, 48% indicated the company’s overall performance had more of an impact on their salary and bonuses than their individual performance.
Corporate real estate valued within organizations
“The compensation growth is an indicator that corporate real estate is valued within organizations and that overall a positive economic trend is upon us,” said CoreNet Global’s senior research associate, Michael Anderson. “Real estate and workplace management is directly tied into overall corporate strategy, as it is a center of efficiency and savings. Therefore, corporate real estate managers are seen appropriately by senior level management as integral to the companies’ overall financial performance.”
This is affirmed by IBM’s assertion during their acquisition of Tririga that real estate is usually the second largest expense on a company’s income statement after salaries.
It is interesting to note that while many corporate real estate executives expect more pay raises to come, they are realistic and aware that their compensation hinges on the company’s performance, putting more pressure on them to control costs to do their part.
Rising salaries for such a small segment of the real estate world by no means spells a recovery, but it is a far different (and more healthy) scene than a mass firing and exodus of the corporate real estate sector.
