Real estate investment firms have a lot to contend with. The war in Ukraine, the energy crisis, fears of a recession, super high inflation and rising interest rates have been weighing heavily on European real estate. Indeed, several MSCI indexes fell last month to a level not seen since March 2020, the start of the Covid pandemic. But as deal flow falls and investors move to the sidelines in anticipation of a correction, why, may you ask, is now a good time to be hiring?
Because the next few years will be all about squeezing every last penny of value from property portfolios whilst navigating difficult market conditions. Asset & Investment Managers may be fundraising, refinancing, restructuring, repositioning, guiding, cajoling, and negotiating like never before. With every other investor, seller, agent, 3rd party contractor, lender and internal department they have to deal with to rinse each and every asset of value.
The importance of strong leadership
Without an “A-Team” of talent at the top, returns on investment and employee retention are likely to suffer. Why? A well-defined strategy including where to cut costs vs where to invest can be the difference between many real estate firms sinking or swimming. For many companies, this tumultuous environment is going to test the mettle of every senior level professional whether listed or unlisted. Those involved in navigating their way out of the 2008 recession may find this easier than those who have moved into leadership positions since then.
Why hire now?
Whether you’re a large real estate multimanager with a multibillion $ AUM or or a boutique PE firm, you can’t afford not to have the brightest and the best at every level and function of your company.
This may mean restructuring internally, putting hiring freezes in place but also targeting specific types of candidates to fill a space where you see opportunity. It may mean making some difficult decisions. Are those who were steering the helm during fair winds the same people you would want when the mother of all storms break?
Perhaps you need someone more creative, well-connected and entrepreneurial in terms of their asset management, deal sourcing or refinancing abilities. Perhaps you want to diversify your portfolio to include distressed or underperforming loans with experienced specialists. Or perhaps you will need a fundraiser with a large black book and proven track record in helping to design new products to bring to market. Maybe you need an asset manager with strong repositioning experience and excellent technical skills to get to the heart of what makes a financially sound business decision. Where are the opportunities and risks you see ahead? Now is a good time to be making these types of decisions; maximise current market opportunities and minimise risks.
Capitalising on opportunity
Typically, real estate firms tend stop hiring as we move into Q4 and people await bonus time after the new year. But this year bonuses are likely to be below average. As competitors worry about navigating a downturn, this marks the perfect opportunity for you to expand your team.
I am seeing some interesting moves in the debt, distressed, private equity and fund management spaces. Senior level candidates are reaching out to me to ask about the market from VP level through to CEO. Some of those who decided to accept offers when the market was buoyant now regret not pursuing new career challenges. Others who are holding out for perks and higher salaries are more flexible. Counter-offers are less common, meaning clients I work with get a far higher chance of attracting their first choice of candidate. Lastly, candidates are more open to niche or less traditional real estate roles, opening up the talent pool.
Using an Executive Search Partner as a means to attracting the best talent
Identifying and attracting real estate professionals takes time. Working with an expert search partner who understands the market and can access the entire talent pool frees up time for you to work on your business.
The chance of a bad hire is reduced; risk is lowered as background checks are done along with rigorous referencing. It can streamline the process and provides vital intelligence on the market including competition, salary information and feedback on how the brand is perceived. This makes for a collaborative experience. Not only that, but executive search lowers the risk of a bad hire, streamlines the placement process, provides vital intel, and makes for a collaborative experience.
At Hunter Scott, we have a 100% fill rate, meaning that success is guaranteed.
If you need to fill a senior level position at your real estate firm, please do not hesitate to get in touch.