Optimistic Outlook for New York City Real Estate Hiring in 2025: Key Trends and Talent Demands
Our 2025 outlook for hiring in the New York City Real Estate sector is bullish. Though much of the activity we saw in 2023 and 2024 came from more “defensive” asset management-oriented functions, recent client conversations have taken a distinctively offensive-minded turn. There is a growing sense of optimism heading into 2025 that the worst is behind us.
In the New York City region specifically, the fundamentals for Multifamily, well positioned Retail, Class A Office, and Industrial are strong and getting stronger. The availability of equity capital is beginning to loosen up, and the debt capital markets are continuing to stabilize. Even the political climate is beginning to warm towards real estate, albeit slower than the industry would like. All these factors lead to what is shaping to be an active year from a people perspective. So which functional areas will see the greatest change in activity?
ACQUISITIONS & INVESTMENTS
Hiring typically begins from the bottom up. An increase in deal activity creates a need for additional resources to do all the blocking and tackling work associated with a transaction. Often these initial Analyst and Associate level hires are a harbinger of good things to come. As deal flows grow, the need for experienced professionals who can negotiate PSAs, interact with capital and JV partners, and manage a close will be in demand. We anticipate an uptick in Director and VP-level roles sometime in Q2 or Q3.
DEBT ORIGINATIONS & INVESTMENTS
As traditional lenders continue to withdraw from the commercial real estate market, non-bank lenders such as real estate credit funds and family offices are stepping in to fill the gap. This trend shows no sign of slowing and appears to be a significant growth and opportunity. We are already fielding requests from clients inquiring about strong investments and underwriting professionals who from an independent manner can work a transaction from initial presentation to close. We anticipate the need for experienced underwriting and investment professionals to continue to grow for the foreseeable future.
DEVELOPMENT
Demand for development professionals with experience in, or an interest in, affordable housing projects has been steady and is expected to grow in 2025. This is particularly true given that many of the restrictive elements of the new 485X program do not apply to 100% affordable developments. Additionally, based on conversations with clients and market leaders we are gearing up for a much more active market for development professionals in the market-rate residential and condominium space, as well. This is a welcomed change as hiring in New York City development has been largely stagnant since late 2018.
IN ADDITION
Though we are forecasting growth in the particular functional verticals outlined above, we also see continued strength in the Asset Management, Finance and Accounting, and Capital Raising verticals which we highlighted in our 2024 New York City Real Estate Recap: A Year of Defensive Strategy and Operational Focus, click here.
NEW YEAR’S RESOLUTION….BE PROACTIVE
As trusted consultants, search professionals provide a valuable service to both companies and professionals. This time of year, our inboxes are filled with inbound inquiries about the state of the market. Our message remains consistent: identifying, evaluating, and hiring the right person for your team takes time. The real estate sector is known for notoriously being slow to hire and often does so reflexively rather than proactively. That approach can lead to rushed decisions and less-than-ideal outcomes.
The right search partner can go a long way to mitigate that risk, but only if they have the time to truly understand your platform, mission, and culture. The role of a search partner is to ensure their client hires the best person possible, not the best person available. The greatest contributing factor to success is time. Competition for skilled talent will be fierce. If your pipeline of loans, investments, or development opportunities is growing, it is best to begin the process of identifying talent sooner rather than later. You’ll save yourself time and most likely money.
