For what it’s worth

High job demand and an increasing need for more specialized knowledge are contributing to the continuing increase in CPM compensation, the 2019 IREM CPM Profile and Compensation Study shows.

Conducted in March, 791 CPMs responded to survey questions about demographics and compensation, showing that for those CPM designees in the U.S., median total compensation, which includes base salary, commissions and other compensations, grew to $126,000, up from $123,025 in 2015.

David Funk, co-founder of the SelectLeaders Job Barometer and the executive director of the American Real Estate Society (ARES), says one of the drivers of asset and property management wage and demand growth is the increasing need for a more sophisticated skill set for some jobs.

“Over the last decade, we’ve observed the transformation of the property and asset management role to include more financial analysis, investor relations and understanding the use of proptech. The need for this knowledge has really ratcheted up the requirements in these roles and, correspondingly, the compensation,” said Funk, an IREM Member and CPM Candidate.

“The increasing inclusion of asset/property managers at the investment committee and C-suite level reinforces the trend that compensation growth will continue for CPMs.”

Among the many highlights, the report revealed:

• The average CPM is 52 years old and has a college degree, and the majority of CPM Members work for property management or full-service real estate companies. About 11 percent of CPM Members identified as self-employed.
• CPM Members who are employed by investment companies, privately owned companies and development or construction companies receive the highest average total compensation. Employees of development or construction organizations saw an average salary increase of about $20,000 the last few years—from $113,705 in 2016’s report to $133,938 in the current one.
• A CPM typically holds a property manager/supervisor or executive level position and on average has 50 employees under his/her supervision.
• The property types that the largest percentage of CPM Members are involved with are office buildings (41 percent), conventionally financed apartments (33 percent), shopping centers/retail properties (25 percent), industrial/industrial parks (15 percent), federally assisted properties (15 percent), medical buildings (11 percent) and condos/co-ops/HOAs (7 percent).
• CPM Members who managed conventionally financed apartments continued to see wage growth, reporting a median salary of $114,700, up slightly from the 2016 findings when the reported median was $112,000.

“Apartments have really been on a 10-year tear, so there is a correlation between the increase in apartments and the demand for property management roles,” Funk said.