How to Build a High-Performing Executive Team in Commercial Real Estate

In the highly competitive commercial real estate (CRE) industry, building a high-performing executive team is a critical factor for long-term success. The performance of your leadership team directly impacts your firm’s ability to close deals, manage properties, navigate market trends, and maintain strong client relationships. At Executive Property Staffing, LLC, we specialize in placing top-tier talent in commercial real estate, and we understand that creating an effective leadership team is essential to achieving your business goals.

In this blog, we’ll explore how to build a high-performing executive team in commercial real estate, from attracting the right talent to fostering a culture of collaboration and continuous improvement.

1. Understand the Unique Demands of the Commercial Real Estate Industry

Building a high-performing executive team starts with understanding the unique challenges and opportunities within the commercial real estate market. Executives in this space must possess a blend of technical expertise, strategic thinking, and leadership abilities. This includes knowledge of market analysis, property valuation, financial management, tenant relations, and the ability to forecast trends that can impact the industry.

Industry-Specific Leadership Skills

A 2021 report by Deloitte identified the most important leadership skills in commercial real estate as strategic thinking (45%), market knowledge (40%), and financial acumen (38%). To build an executive team that excels, you need leaders who understand the market dynamics and can lead your firm with these skills in mind.

As you look to build a high-performing executive team, it's essential to clearly define the competencies and experiences your leaders need to bring to the table. For example:

• Chief Financial Officers (CFOs) should have a solid background in managing financial portfolios, understanding market risks, and optimizing investment strategies.

• Chief Operations Officers (COOs) should have experience in overseeing property management, ensuring operational efficiency, and maintaining tenant satisfaction.

• Chief Development Officers (CDOs) should possess strong knowledge of real estate development processes and market forecasting.

2. Attract the Right Talent

Building an exceptional executive team in commercial real estate starts with attracting the right talent. This involves finding individuals who not only have the technical expertise but also align with your company’s culture and values. A diverse and experienced leadership team will provide unique perspectives and innovative solutions to business challenges.

Where to Find Top Commercial Real Estate Talent

One of the most effective ways to source high-performing executive talent is through a specialized executive search firm like Executive Property Staffing, LLC. We specialize in identifying candidates with proven success in commercial real estate who can drive your company forward. By leveraging industry-specific networks and talent pools, you’ll have access to candidates who are not only qualified but also have a deep understanding of the CRE landscape.

A 2020 report by Commercial Real Estate Development Association (NAIOP) highlighted that 35% of CRE executives consider talent acquisition their greatest challenge. Therefore, it's crucial to have a strategy in place to attract and retain the best leaders in the field.

3. Build a Strong Leadership Culture

Once you have the right individuals in place, it’s essential to foster a leadership culture that promotes collaboration, accountability, and continuous improvement. A strong leadership culture allows executives to work together to drive company goals, solve problems, and support one another through challenges.

Encourage Open Communication and Collaboration

In a high-performing executive team, open communication is key. The ability to collaborate effectively across different departments—such as acquisitions, leasing, operations, and finance—allows executives to make informed decisions that drive growth.

According to a McKinsey & Company report, companies with high collaboration levels are 50% more likely to achieve higher profitability. In commercial real estate, where decisions often involve complex negotiations and multi-departmental input, fostering a collaborative environment ensures that your executive team can work together to execute strategies successfully.

Develop Accountability and Clear Objectives

An essential aspect of a high-performing executive team is accountability. Setting clear goals and objectives for each executive role ensures that each leader understands their responsibilities and is held accountable for delivering results. This clarity also prevents overlap and confusion between departments.

A 2019 survey by Gallup found that 68% of high-performing teams have clear performance expectations and goals. By ensuring that every member of your executive team is aligned with your company’s strategic objectives, you create a more effective and efficient leadership team.

4. Invest in Leadership Development and Training

A high-performing executive team doesn’t stop at recruitment; ongoing leadership development and training are essential for maintaining top-tier performance. The commercial real estate industry is constantly evolving, and your executives must stay ahead of the curve in terms of industry trends, regulatory changes, and technological advancements.

Investing in Continuous Learning

Encourage executives to attend industry conferences, participate in training sessions, and earn certifications relevant to their roles. Programs like Certified Commercial Investment Member (CCIM) and Real Estate Investment Trust (REIT) certifications are excellent ways to keep your leadership team knowledgeable and up to date.

The Urban Land Institute (ULI) reported that 86% of CRE executives believe investing in employee development helps retain top talent and drives better business outcomes. Leaders who continue to grow in their roles can adapt to industry changes and guide your company through evolving market conditions.

5. Foster Innovation and Adaptability

The commercial real estate market is dynamic, and it’s critical for your executive team to remain adaptable to change. The ability to innovate and pivot based on market trends can provide a significant competitive advantage.

Encourage Risk-Taking and Innovation

A high-performing executive team should be comfortable with taking calculated risks, whether it’s exploring new markets, developing innovative property solutions, or investing in new technologies. According to a 2019 PwC report, 82% of executives in the real estate industry say that the adoption of new technologies, such as AI and data analytics, is critical for staying competitive.

Encourage your leadership team to seek out new opportunities for growth and remain agile in response to changing market conditions. Those who embrace innovation and adaptability can lead your firm through economic cycles, market shifts, and new business challenges.

6. Measure Performance and Celebrate Successes

Performance measurement is crucial for understanding whether your executive team is meeting the company’s goals. By setting clear KPIs (Key Performance Indicators) for each executive role, you can track performance and ensure that everyone is aligned with business objectives.

Data-Driven Leadership Decisions

According to a 2021 Harvard Business Review article, companies that use data analytics for decision-making are 5 times more likely to make better decisions and achieve superior business outcomes. Using data to assess the performance of your executive team allows you to make informed decisions about promotions, compensation, and development needs.

Also, celebrating successes—whether it’s securing a major lease, closing a significant deal, or improving operational efficiency—reinforces a culture of high performance and motivates the team to strive for continued success.

Conclusion: Building an Executive Team That Drives Commercial Real Estate Success

Building a high-performing executive team in commercial real estate requires a strategic approach to talent acquisition, leadership development, and collaboration. By attracting the right talent, fostering a culture of innovation and accountability, and investing in continuous learning, you can position your commercial real estate firm for long-term success.