How to Identify Leadership Gaps in Commercial Real Estate Firms

In commercial real estate (CRE), leadership is directly tied to profitability, operational efficiency, and long-term growth. A strong leadership bench can navigate market shifts, drive acquisitions, and enhance investor confidence. Yet many CRE firms operate with unrecognized leadership gaps — until growth stalls, teams underperform, or turnover spikes.

This article will walk you through how to identify those gaps, why they matter, and how working with a real estate staffing agency or executive search firm real estate-focused can help you close them effectively.

Why Leadership Gaps Matter in CRE

Leadership gaps occur when there are unfilled or underperforming roles at critical levels, such as VP, Regional Director, Asset Manager, or Head of Property Management.

📊 Real Data: The Impact of Leadership on CRE Performance

• A study by Harvard Business Review found that companies with strong leadership pipelines are 1.8x more likely to outperform competitors in financial metrics.

• According to PwC's 2024 Global Real Estate Outlook, 56% of CRE executives report that talent shortages are a major barrier to scaling operations.

• Urban Land Institute data shows that 63% of real estate firms entering new markets cite a lack of experienced leadership as a limiting factor.

  
  

Signs of Leadership Gaps in CRE Firms

1. Frequent Decision-Making Bottlenecks

If decisions stall in departments like leasing, operations, or capital improvements, it often reflects leadership overload or role confusion.

2. Flat or Declining Asset Performance

Underperforming portfolios often point to weak oversight at the property or asset management level.

3. No Formal Succession Plan

Companies without a defined plan for senior role transitions are vulnerable to disruption.

4. Overextended Executives

When executives are juggling too many responsibilities across markets or asset classes, productivity and strategic vision suffer.

5. Increased Mid-Level Turnover

When key managers resign, it often reflects leadership gaps above them — whether due to poor direction, support, or development.

How to Identify These Gaps Proactively

🔍 Conduct a Leadership Audit

Evaluate each function:

• Leasing

• Asset Management

• Capital Markets

• Property Operations

• Investor Relations

Ask yourself:

• Do we have succession plans for each senior role?

• Are our current leaders aligned with where the company is headed in 1–3 years?

• Are there strategic initiatives with no clear owner?

📈 Align Talent Strategy with Growth Strategy

Whether you’re scaling into new markets or adopting new technologies, your leadership structure must evolve with your business plan.

For example:

• Expanding into logistics real estate? You may need a VP of Industrial Development.

• Launching an ESG initiative? A Director of Sustainability may be essential.

📊 Use Market Benchmarking

Compare your org chart with firms of similar size and market reach:

• Do they have dedicated Regional Directors or COOs where you do not?

• Do they invest in leadership training programs?

• How does their executive comp structure compare?

Tools like CBRE’s U.S. Real Estate Market Outlook or NAIOP Research can provide industry benchmarks.

💬 Conduct 360° Feedback

Anonymous surveys from team members, partners, and clients can reveal where leadership is falling short — often before it becomes a crisis.

Why CRE Firms Partner with Executive Search Firms

Identifying a gap is only the first step. Filling it requires the right strategy, network, and expertise — which is where an executive search firm real estate focused becomes essential.

Benefits of Partnering with a Specialized Recruiter:

• Access to passive, high-level talent not active on job boards

• Confidential searches (especially when replacing current execs)

• Role-specific vetting — not just experience, but fit and leadership style

• Speed: they’ve already done the market research

According to LinkedIn's Global Recruiting Trends, 70% of executive talent is passive — meaning they’re not actively looking but open to the right opportunity.

A real estate staffing agency with executive placement services can ensure you're not just hiring fast — you're hiring right.

Closing the Gap: Questions to Ask Your Team

Before engaging a recruiter, ask internally:

• Which leadership roles are mission-critical in the next 12–18 months?

• What skills are missing from our leadership team?

• Are we growing faster than our leadership structure can support?

• Do we have a backup plan if a top exec exits tomorrow?

  
  

Final Thoughts: Strategic Growth Requires Strategic Hiring

In today’s competitive real estate market, you can’t afford to wait until a crisis to fix leadership issues. Proactively identifying leadership gaps — and filling them with qualified, permanent hires — is one of the most important investments your firm can make.

At Executive Property Staffing, LLC, we help CRE and senior living companies fill critical roles through strategic, permanent placements — not temps, not contractors — so your team has the leadership it needs to scale with confidence.