Career Trends and Strategies in the Midst of Turmoil and Transition
On Thursday, October 1, 2009, the Cornell Real Estate Council hosted the 2009 Career Summit at the J.P. Morgan Chase Conference Center in New York City. The Career Summit presented a comprehensive overview of the past year’s U.S. real estate employment market statistics and trends. Attendees covered the gamut of real estate professionals, including current Program in Real Estate (PRE) students, Cornell Alumni, Associate Real Estate Council members, and other veterans of the real estate industry.
Anthony J. LoPinto, the founder of SelectLeaders, and Dr. David L. Funk, director of Cornell’s Program in Real Estate, kicked off the 2009 Career Summit with a presentation of the SelectLeaders/Cornell Job Barometer Report. This recently released Report highlights the daunting current unemployment statistics. LoPinto emphasized that the 10% unemployment figure touted by media outlets fails to reflect the true unemployment rate. In addition to unemployed reported, another 2% have given up on their job search and 6% are underemployed. The total “actual” unemployment rate exceeds 18%.
Despite these dark statistics, LoPinto offered some hope: “I am optimistic that we’ve found the bottom and are now looking at the road to recovery.” Dr. Funk added that, “The average graduating real estate masters student’s salary remains higher than both graduating M.B.A. students and law school students.” Funk emphasized the career and real estate opportunities existing in the real estate market. Large multidisciplinary real estate firms and consulting firms are re-gearing to move beyond the current crisis. LoPinto noted that real estate growth and development over the next few years will occur in urban centers, metro (transit) hubs, and green (sustainable) real estate.
Recognizing the current market conditions, the Career Summit provided some guidance, including a commercial real estate luncheon panel discussion titled “How Best to Manage Your Career During Turmoil and Transition” facilitated by LoPinto. The panel included Judy Wong, Vice President of Talent Acquisition and Development for the Related Companies, and Robert Deckey, Chief Investment Officer of George Comfort & Sons, Inc – a private commercial real estate operator and developer. The Panelists agreed that hiring is expected to accelerate between 2011 and 2012, with a slight hiring boost occurring in the Spring of 2010. While base salaries have held steady during the economic downturn, incentive pay has decreased from 40% of salary to between 20% and 15%. According to the panelists, these percentages will slowly begin to increase starting in late 2010.
The panelists emphasized the importance of networking and maintaining career flexibility. According to the panelists, a vast majority, approximately 95%, of hiring occurred or was initiated through networking. Wong also encouraged job seekers to keep a flexible mind: “Think of the world as your oyster.” In keeping flexible, Wong noted that individuals hired as temporary employees transition to full time employment nearly 50% of the time.