The “Silver Tsunami” has a name in commercial real estate: Peak 65. As 2025 unfolds, the CRE industry faces an unprecedented wave of Baby Boomer retirements. Baby Boomers are exiting at every level—from property managers to C-suite executives—often with little warning.
Why Now? Why So Fast?
Peak 65, the point at which the greatest number of workers reach retirement age, was breached in the summer of 2024 and is expected to continue well into 2027 and beyond. This will be compounded by the additional retirements that stem from daily, professional, personal, and economic factors. Health issues, for employees or their spouses, are a key driver. In other cases, “retirements” mask strategic downsizing by employers. Regardless of the cause, the impact is clear: institutional knowledge, relationships, and continuity are at risk.
The Intangibles of Succession
Replacing a CFO goes beyond financial expertise. It’s about presence, communication, and cultural fit. A common pitfall—what we call the “opposites trap”—is hiring someone with a contrasting style (e.g., an extrovert to replace an introvert) to shake things up. Instead, firms should prioritize cultural alignment over dramatic change.
Succession Planning Done Right
To prepare for the retirement wave, CRE firms should:
- Plan Holistically: Succession isn’t just for executives—include all critical roles across the organization.
- Balance Overlap: Some overlap with outgoing staff aids transition, but too much can stifle new hires.
- Re-Scope Strategically: Use retirements as a chance to redefine roles based on current and future needs.
- Align Stakeholders: Seek consensus on the role’s requirements without diluting its focus.
Closing Thought
At RETS, we’re more than recruiters—we’re transition partners. Whether your firm faces its first major retirement or a dozen, we bring insight, discretion, and strategy to ensure success. The Retirement Ripple is here. Let’s meet it with foresight and confidence.
