Development is the varsity level of commercial real estate. The stakes are high, you can get creative in nearly every part of the transaction, and fortunes are made or lost on execution.
Development jobs are just as cyclical as development projects. In most asset classes, hiring has been slow since 2023. The supply of talent looking for work significantly outpaces demand, especially at the junior level.
The biggest bright spot is industrial, largely driven by data center investment. The AI boom has pushed significant capital into data center and energy projects, and job openings have concentrated in those sectors.
Affordable housing has also held up well over the past couple of years. Government subsidies and incentives for income-restricted housing have kept demand for talent relatively balanced with supply. We've placed several candidates in development roles at affordable developers, and it's one of the few sectors where hiring feels healthy.
There is activity in other areas - adaptive reuse, hotel and office to multifamily conversions - but it hasn't translated into meaningful hiring volume. Most open positions are still driven by turnover.
With the exception of data centers, development compensation has been flat or declining since 2023. The following report compiles compensation data, bonus sentiment, and interview considerations for development professionals. Enjoy!