Since its inception, the real estate industry has encompassed a vast array of job sectors and business fields. As the industry continues to evolve, it's essential to stay updated on the various roles and compensation trends within the field. In this article, we'll delve into the latest data on pay in the real estate industry in the United States for the year 2022.
Source of Compensation Data
For reliable and up-to-date information on compensation in the real estate industry, the National Real Estate Compensation & Benefits Survey conducted by CEL & Associates is widely regarded as the industry standard. With participation from nearly 400 companies encompassing 190 real estate positions, this survey provides confidential compensation data across various real estate sectors, fields, and functions.
The survey, conducted in partnership with the National Association of Office and Industrial Properties (NAIOP) and the National Apartment Association (NAA), offers comprehensive insights into salary trends, bonus pay structures, and pay details based on company type, location, and size. Both a detailed paper covering all aspects of compensation and a free summary of the survey results are available for interested professionals.
Real Estate Compensation in 2022
To provide you with the most relevant information, we have condensed the comprehensive summary of compensation data to focus on the positions that are most applicable to our readers. This includes roles ranging from Analyst to Managing Director in industrial, office, retail, and multifamily real estate firms involved in acquisitions, asset management, property management, and development.
The reported total pay, considering both salary and bonus, has been analyzed to demonstrate the percentage change in total compensation from 2013 to 2022 and from 2020 to 2022 for each position.
Summary of 2022 Pay (Salary plus Bonus) for Office and Industrial Real Estate Professionals
Professionals working in office and industrial properties experienced an average increase in compensation of 7.43%. The pay for these roles showed significant growth, ranging from 5.5% to 13.47%, reflecting a record high spread in annual salaries.
In terms of bonuses as a percentage of salary, senior roles received higher percentages compared to junior roles. Acquisitions had the highest bonus potential for a senior analyst/associate position, reaching 30%. Asset management closely followed with bonus percentages of 27% and 29% for junior roles.
Asset management professionals demonstrated the highest change in total compensation among all office and industrial roles, with an increase of 9.45%. This was followed by property management professionals with an average change of 7.94%, development with 6.75%, and acquisitions with 6.02%.
Summary of 2022 Pay (Salary plus Bonus) for Retail Real Estate Professionals
For professionals in the retail sector, there was an overall increase in total compensation ranging from 5.57% to 7.56%. Acquisitions boasted the highest average percentage change in total compensation at 7.24%, followed by property management at 7.13%, asset management at 7.01%, and development at 7.0%.
Compared to the previous year, the increase in total salary change was nearly double. This significant rise can be attributed to the higher inflation rate observed in the middle of 2022.
Summary of 2022 Pay (Salary plus Bonus) for Multifamily Real Estate Professionals
In the multifamily sector, the bonus percentages as a proportion of salary remained largely unchanged from 2021. However, when averaged, the bonus figures in multifamily real estate surpassed those in the retail sector and ranked just below those in office and industrial properties. The base salary range for multifamily positions was the lowest among the four asset types.
Early-career professionals in multifamily acquisitions, asset management, and development, with titles such as analyst and associate, can expect total compensation ranging from the high five-figure range to the middle six-figure range. Additionally, their bonus percentage typically accounts for around 21% of their total compensation.
Changes in Real Estate Salary and Bonus - 2022 vs. 2021
In 2021, we witnessed the fastest growth rate in real estate compensation in five years. However, 2022 surpassed that growth rate with an average increase in total compensation of 7.31%. The annual inflation rate reached 6.5% that year, peaking at 9.1% in June. Consequently, base salaries were significantly increased compared to the previous year.
Similar to the previous year, asset management professionals in office and industrial properties experienced the highest average growth in total compensation, with a 9.45% increase from 2021 to 2022. On the other hand, acquisitions in office and industrial properties saw the lowest average growth, with a 6.01% increase in compensation.
Changes in Real Estate Salary and Bonus - 2013 vs. 2022
Over the period from 2013 to 2022, the total compensation in the real estate industry has increased, on average, by 30.6%. To offer perspective, we have created a visualization showcasing the change among all positions from 2016 to 2022. It's important to note that the data only goes back to 2016 due to the unavailability of data from 2015.
Conclusion on 2022 Real Estate Pay
The year 2022 witnessed unprecedented increases in total compensation within the real estate industry. This survey highlights the accelerating growth of compensation and the industry's openness to individuals with both entrepreneurial and employee mindsets. From base salary to additional compensation, the industry provides benefits for professionals at all stages of their careers.
To ensure professionals in commercial real estate roles, such as acquisitions, development, asset management, leasing, and property management, can make informed decisions during salary negotiations, it is crucial to understand the trends behind these salary figures. We hope this data serves as a valuable resource for your understanding of real estate salaries.
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