Combatting the “Age Gap”: How to Address REIMs Changing Demographics.
NAREIM/FPL Pulse Series
Second Quarter, 2013
Age demographics in the United States are undergoing a fundamental shift. Baby boomers, defined as those born between 1946 and 1964, today represent nearly a quarter of the U.S. population. This group is aging, and reaching retirement age in ever increasing numbers. According to the U.S. Census Bureau, from 2015 to 2030, the population aged 65 and over is expected to increase by 53 percent – compared to just a 3 percent increase for the 18-64 demographic. The implications of this shift are innumerable, and companies throughout the country are grappling with a changing workforce demographic, and an ever-increasing focus on how to appropriately plan for this impending change.
The effect of the baby boomer retirement wave is even more pronounced within the commercial real estate industry. Not only are the visionary founders of many of today’s prominent and successful companies approaching retirement age, but there is a clear gap between these professionals and the next generation of leaders. The industry’s workforce today largely consists of two demographics: professionals in their 20s and early 30s at one end of the spectrum and those 50+ at the other. By contrast, senior professionals in their late 30s and 40s are largely underrepresented due to industry dynamics that led many away from commercial real estate in the 1980-90s.← Improving Trends, but Uncertainty Remains: The NAREIM/FPL 2013 Management Survey Boards Push for Independence and Focus Shifts to CEO Succession →