Market Overview

Corporate Real Estate Executives Saw Base Pay Increases in 2012; Anticipate Further Growth in 2013

ATLANTA, Feb. 6, 2013 (GLOBE NEWSWIRE) -- An overwhelming majority – 79 percent – of those who manage corporate real estate (CRE) portfolios saw increases in their base salary in 2012, according to a global compensation study conducted by CoreNet Global and FPL Associates. In addition, 78 percent of the respondents anticipate receiving increases again in 2013.

Two years ago, just 66 percent reported an increase.

Globally, corporate real estate executives realized an average increase of 4 percent in base salary in 2012. The average salary for a head of corporate real estate was $192, 207 with average total annual compensation of $230,996.

The growth in compensation correlates to levels of investment and development activity among corporate real estate departments. Consistent with last year, investment activity is projected to stay the same or increase for a majority of participants' internal CRE organizations, with less than 15 percent of participants anticipating a decrease in acquisitions, development or dispositions.

In 2012, 41 percent of the respondents reported projected increases in acquisition activity over the previous year, compared to 45 of those who saw an increase between 2010 and 2011. The percentage of those reporting decreases in acquisitions went down from 16 percent between 2010 and 2011, to 14 percent from 2011 to 2012. Development increases were stable, with 37 percent reporting increases in from 2011 to 2012, nearly the same anticipated growth reported a year earlier (36 percent).

Company performance had the largest impact on determining annual cash bonuses (53 percent), followed by individual performance (28 percent). Interestingly, internal commercial real estate organization performance and the performance of a department within the CRE organization had relatively little influence in determining bonus awards.

For the second consecutive year, the percentage of participants that received an increased annual bonus when compared to the previous year more than doubled those that received a decreased payout over the same time period. Fourteen percent of participants did not receive an annual incentive award for performance in 2011, while only nine percent did not anticipate receiving one of 2012.

"As we have seen in the years of researching CRE compensation, growth in compensation correlates to greater levels of investment and development activity among corporate real estate departments globally," said Angela Cain, CEO of CoreNet Global. "As the survey demonstrates, the industry has been stable – if not grown – over the last year, and we are optimistic about the industry continuing to recover in 2013."

"Two-thousand twelve proved to be a solid year for corporate real estate, and executives are expecting to see gains in both base pay and annual bonuses as a result," said Jeremy Banoff, Senior Managing Director at FPL.

CoreNet Global and FPL conducted the survey in the third quarter of 2012 among 298 corporate end users of commercial real estate, representing 259 organizations. The respondents represented a range of industries and global regions. The average number of employees in the companies represented in the survey is 38,581 and the average number of employees involved in internal corporate real estate was 121.

About CoreNet Global

CoreNet Global is the world's leading professional association for corporate real estate (CRE) and workplace executives, service providers and economic developers. CoreNet Global's 7,500 members, who include 70% of the top 100 U.S. companies and nearly half of the Global 2000, meet locally, globally and virtually to develop networks, share knowledge, learn and thrive professionally. For more information, please visit www.corenetglobal.org

About FPL Associates L.P.

FPL Associates, a member of the FPL Advisory Group family of companies, provides a range of specialized compensation and management consulting solutions to a select group of related industries. As part of its compensation services, FPL Associates assists clients in the assessment, design, and implementation of compensation programs for professionals and board members. The company specializes in crafting performance management and reward systems that align management interests with the achievement of strategic business objectives. For more information please visit www.fplassociates.com

CONTACT: Richard Kadzis CoreNet Global +1.404.589.3240
 

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