Retail Real Estate Industry Sees Increased Compensation Payouts Amid Strong Hiring and Performance
70% of Survey Participants Expect to See Hiring Increase at Their Companies
NEW YORK, November 8, 2013 – The just-released 2013 International Council of Shopping Centers (ICSC) North American Retail Real Estate Compensation Survey, which was collected and complied by FPL Associates, LP, found that the median retail real estate salary increase for 2013 is trending up 3.0 percent from the prior year—identical with 2012’s pace. The survey was based on compensation trends and policies for a record-high participation of 92 companies and 100 positions ranging from executive to junior-level.
“The retail real estate industry is finally operating on all cylinders with strong leasing prospects, low supply of space, improving rent and cyclically-high net operating income,” said Michael P. Niemira, chief economist and vice president of research for ICSC. “With that as a backdrop, the latest industry survey found a healthy 3% gain in the pace of compensation for 2013 and an expected continuation of that pace into 2014,” Niemira added.
“The healthy pace of hiring, in which approximately 70% of participants expect to see an increase in the size of their overall employee headcount in 2013, combined with the fact that nearly four-fifths of companies expect fiscal year 2013 to be better than 2012 in terms of overall performance, suggests a healthy and competitive environment across the retail real estate industry,” noted Jeremy Banoff, senior managing director of FPL Associates. “Consequently, more than three-times the amount of participants reported increases in cash-bonus payouts compared against those that reported decreases, year-over-year,” added Banoff.
These results are part of the fifth annual compensation study for the North American retail real industry. The 2013 compensation study covers a variety of compensation program design topics, benefits/perquisites, as well as individual compensation data including base salary, annual incentives and long-term awards for 100 retail real estate positions in accounting, audit and tax, asset management, corporate finance, development, executive management, human resources, leasing, legal, marketing, project management, property accounting, property operations and facility management, real estate transactions, security, technology and more. This 150 plus page report is available from ICSC and FPL Associates for ICSC members though its bookstore at U.S. $2,995 for ICSC members and non-ICSC members at US $4,995.