If capital projects in the public sector have become more risk-focused, commercial and residential real estate has undergone a different, but equally significant shift.
This is no longer a market where value is created by simply acquiring well and waiting. Today, performance must be engineered.
The end of “buy, hold, sell”
For years, the model was predictable, acquire an asset, benefit from capital appreciation, and exit at a profit. That model is no longer reliable.
Market volatility, changing demand, and sector-specific disruption mean investors are increasingly focused on income generation and operational performance, not just long-term uplift.
This is driving demand toward:
- Operationally intensive assets (e.g. student accommodation, hotels, serviced offices)
- Alternative sectors (life sciences, data centres, living)
- Assets that require active management to unlock value
The implication for hiring is therefore clear, real estate is no longer just about property, it’s about business operations.
A different kind of talent is emerging
As investment strategies evolve, so too does the profile of the individuals being hired. Employers are moving away from traditional, process-driven profiles and placing greater emphasis on:
- Curiosity and problem-solving ability
- Comfort operating in ambiguity and uncertainty
- The ability to think commercially beyond the asset itself
In many cases, hiring decisions are no longer based purely on track record, but on how individuals think.
Interview processes are reflecting this with less focus on “what deals have you done?” and more emphasis on how candidates approach problems, assess markets, and make decisions.
This marks a clear shift toward cognitive agility over procedural experience.
The leadership gap
One of the most significant and often overlooked constraints in the market sits at mid-to-senior level.
There is a structural shortage of professionals in their late 30s to early 40s, those who would typically be stepping into leadership and director roles today.
This gap traces back to the slowdown in graduate hiring following the Global Financial Crisis, where entry-level recruitment across the industry dropped sharply.
Over fifteen years on, the impact is clear:
- A thinner leadership pipeline
- Increased competition for proven operators
- Greater pressure on succession planning
For employers, this is not a short-term hiring challenge it is a long-term structural issue.
Technology, cost pressure and the “repurposing” of talent
Alongside this, the industry is becoming more technically sophisticated.
Data, analytics, and technology-enabled decision-making are playing a far greater role than they did historically. This is quietly reshaping the workforce.
There is a growing trend toward:
- Hiring individuals who are more analytically and technologically capable
- Reducing reliance on traditional relationship-led, deal-driven profiles
- Bringing in talent from adjacent industries (finance, retail, legal, operations)
In some cases, this is resulting in the replacement or displacement of more traditional profiles, particularly where cost pressures and evolving skill requirements intersect.
A broader, more diverse talent pool
The definition of “relevant experience” is expanding.
Where once the sector was heavily weighted toward surveyors, today’s teams are far more interdisciplinary, incorporating:
- Operational specialists
- Financial and investment professionals
- Data and analytics capability
- Sector-specific expertise (e.g. life sciences, infrastructure)
This diversification is increasing the potential talent pool, but also making hiring decisions more complex.
Employers are no longer looking for exact matches. They are looking for adaptability, perspective, and future potential.
What this means for employers
The shift in this sector is subtle but profound.
- Past success is no longer a reliable predictor of future performance
- Hiring processes need to evolve to assess thinking, not just experience
- The most valuable candidates may not come from traditional backgrounds
At the same time, the leadership gap and changing skill requirements mean that:
- Competition for high-calibre talent remains intense
- The “obvious” candidates are fewer
- And hiring mistakes carry greater commercial risk
In a market where value must be actively created, the question is no longer: “Who has done this before?”
Rather it is: “Who can think differently enough to succeed in what comes next?”.
Continue the conversation with MRG’s Christopher Mackenzie.