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How to Handle Executive Turnover in Commercial Real Estate

  • Writer: EPS Team
    EPS Team
  • Aug 27
  • 3 min read

Updated: Aug 28

Executive turnover in commercial real estate (CRE) is more than just a staffing inconvenience—it can disrupt operations, delay projects, and impact investor confidence 📉. According to a 2023 Korn Ferry report, the average tenure for executives across industries has dropped to just 4.9 years compared to 8–10 years in the early 2000s (Korn Ferry, 2023).


For CRE companies, this challenge is amplified due to the industry’s fast-paced deal cycles, the need for specialized market knowledge, and the limited pool of experienced leaders 🏗. At Executive Property Staffing, LLC, we specialize in helping organizations address turnover through permanent hire commercial real estate staffing and tailored commercial real estate staffing solutions.


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📊 The Scope of Executive Turnover in CRE

While executive turnover rates vary by role, CRE is facing rising leadership mobility:

  • 📈 17% of senior leaders in real estate changed jobs in 2022, up from 13% in 2019 (SelectLeaders Job Barometer, 2022).

  • 🏢 Roles most impacted include Chief Investment Officers, Heads of Asset Management, and senior property operations executives.

  • 🔍 45% of CRE firms cite “finding qualified leadership” as one of their top 3 business challenges (PwC & ULI Emerging Trends in Real Estate 2024).


💰 The cost of replacing an executive is estimated at 213% of their annual salary when factoring in lost productivity, recruiting, and onboarding costs (Center for American Progress, 2012).


🚨 The Impact of Sudden Leadership Gaps

Executive turnover can trigger:

  • ⏳ Delayed Development Timelines: A vacant leadership role can delay project approvals and execution by months.

  • 📉 Lost Investor Confidence: Stakeholders may question the company’s stability.

  • 😟 Team Disruption: Direct reports may experience uncertainty, impacting morale and performance.


When these roles go unfilled for too long, CRE firms risk missing market opportunities and weakening their competitive edge 🏁.


🛠 Strategies to Manage and Reduce Executive Turnover


1️⃣ Develop a Strong Succession Plan

According to Deloitte, only 14% of companies are confident in their leadership pipeline (Deloitte Global Human Capital Trends, 2023). CRE firms should identify internal talent with leadership potential and provide mentorship, cross-training, and career advancement opportunities 🌱.


2️⃣ Partner with Specialized Recruiters

Working with a permanent hire commercial real estate staffing partner like Executive Property Staffing, LLCensures access to pre-vetted executives with the niche skills needed in CRE 🎯. Our network allows for faster placements, reducing vacancy time from months to weeks.


3️⃣ Offer Competitive, Performance-Based Compensation 💵

A 2023 CEL & Associates survey found that total cash compensation for senior CRE executives increased by 8% year-over-year (CEL & Associates, 2023). Competitive pay, tied to performance metrics, improves retention.


4️⃣ Invest in Leadership Development 📚

Firms that invest in executive leadership training see 34% higher retention rates (LinkedIn Workplace Learning Report, 2023). This includes industry-specific training, market trend analysis, and strategic decision-making courses.


5️⃣ Maintain Transparent Communication During Transitions 📢

When turnover occurs, clear internal and external communication can prevent speculation and maintain trust. This includes announcing interim leadership and outlining the search process.


📦 How Staffing Solutions Can Fill Gaps Quickly

Commercial real estate staffing solutions are not just about replacing an executive—they’re about ensuring the right cultural and strategic fit 🤝.


At Executive Property Staffing, LLC, we:

  • Maintain a pipeline of experienced CRE executives.

  • Conduct market mapping to identify passive candidates.

  • Prioritize both technical expertise and leadership style for long-term success.


📈 Proactive Hiring to Prevent Future Turnover

Preventing turnover starts before a hire is even made:

  • 📝 Define the Role Clearly: Ensure expectations are realistic and aligned with market conditions.

  • 💬 Vet for Cultural Fit: Leaders who align with a company’s mission and values are more likely to stay.

  • 📊 Use Data-Driven Recruitment: Evaluate candidates based on measurable competencies, market performance, and leadership track record.


🌟 The Bottom Line

Executive turnover in CRE is inevitable, but it doesn’t have to derail your business 🚀. By building a strong succession plan, offering competitive compensation, and leveraging permanent hire commercial real estate staffing through Executive Property Staffing, LLC, companies can not only fill vacancies quickly but also strengthen leadership for the future.


With the right commercial real estate staffing solutions, you can turn a leadership gap into an opportunity for growth, stability, and innovation 💡.

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