Connect Media – December 16, 2024
Employment patterns—e.g., staffing up or its opposite, downsizing—are among the most indicative metrics for measuring the health and vitality of an industry. A new survey from commercial real estate recruitment firm RETS Associates finds that the outlook is brightening for financial analysts, certainly a harbinger of increased deal flow to come.
“As the Federal Reserve moves into an easing cycle, and with national unemployment still low at 4.1% as of September 2024, financial analysts have a brighter outlook on hiring prospects than a year ago,” RETS says in its recent CRE Financial Analyst/Associate Survey. “Only 10% of survey respondents stated that the hiring market is significantly worse than the last year, down from 24%.”
In addition, the percentage of respondents who believe the market is “slightly worse” is also down: 24%, compared to 42% a year ago. Financial analysts with 0 to two years of experience are the most optimistic, according to the survey. Forty-five percent of these respondents say the market has improved, while associates with three to five years of experience are the most pessimistic, with 41% saying the market is worse than the year prior.
RETS says that 72% of survey respondents have actively pursued a new job in the past year, either at their current employer or another firm. “The job market has been active, as even a few people who stated they were not actively looking for a job have had job interviews,” according to RETS. Overall, 74% of respondents have had at least one interview in the past year, with 35% reporting they’ve gone on four or more interviews.
Job searches were most common among analysts, with 82% of those having 0 to four years of experience actively seeking new opportunities. Among associates with three to six years of experience, the rate was slightly lower, with 64% pursuing another job over the past year.
Growth potential and compensation are by far the most important reasons candidates leave their current jobs and what they consider when looking for new jobs. That being said, RETS noted that other factors come into play. “Dissatisfaction with the nature of work, firm culture and supervisors are significant factors driving candidates to seek new positions,” according to the survey. These factors are especially motivational for women, says RETS.
As for compensation, it appears to improve by firm size. In particular, firms with 500 or more employees show 23% higher compensation for analysts with 0 to six years of experience, compared to those with 50 or fewer employees.
Location is also an extremely important factor when considering a new job. Although 72% of respondents said they would be willing to relocate for a new job, 39% identified their current location as ideal. For those not listing their current location, 60% mentioned New York, Washington DC, San Diego, or Orange County as preferred places.
RETS reports that analysts find value in working on a variety of property types, with 76% of survey respondents expressed interest in working on mixed-use property types. Multifamily is also a sector of high interest, with 78% of respondents citing it.
Otherwise, interest levels generally align with market trends and property size. Office continues to rank low, with only 21% of survey respondents expressing interest in the sector, compared to industrial (47%), data centers (39%), retail (36%) and hospitality (30%). If a future RETS survey reports higher interest in the office sector, it’ll reflect a dramatic reversal of fortune from this property type’s currently uncertain outlook.
