Vacancies at a record high
The number of people in work and job vacancies are at a record high, while earnings are slowly creeping up as a result of inflation and current interest rates. According to the Office for National Statistics employment rates are the highest since records began and vacancies have seen a dramatic increase. The vacancy rate in the UK is being driven predominantly by economic factors and of course net migration, dare I say BREXIT, which directly affects the service and hospitality sectors.
So what does this mean for commercial real estate?
At MBS we've had significant success in introducing people from these industries into commercial real estate with great success. Functions such as FOH, Centre Management, Sales and Regional Management in commercial real estate share very similar skills and behavioural skill sets. The appeal to candidates is clearly greater opportunities and increased earning potential.
Recruiting and retaining the best.
The challenge now in the commercial real estate market is finding and retaining the best talent. The sector has never been busier or more competitive, with suppliers now offering 15-20% commission to secure brokers leads for empty office space. Occupancies on the whole are more fragile, as clients are tempted away by shinny new buildings and 'hot deals' by new suppliers to move. In most cases increased broker fee's will not win the war on occupancy and ultimately yield. It will always come back to 'great people', having the best team at your disposal to drive customer satisfaction, new sales and ultimately customer loyalty (Retention). Companies that are more obsessive and passionate about 'people' will attract/retain the best talent and therefore more than likely to have greater market share.