How can we secure leadership and knowledge in an industry that is ageing faster than its buildings? And how can leadership continue to succeed in the future when the most experienced minds will soon be gone?
In the real estate industry, transformation and demographic change are directly colliding. In today’s LeadershipImpulse article, we focus on an often overlooked dimension of future viability: the conscious handling of experience, knowledge and succession – as the core of sustainable leadership. This article is closely related in content to the previous LeadershipImpulse articles “Leading Sustainability” and “Leading in Success”.
In our daily work in executive search, we are increasingly encountering companies that sense that the leadership landscape is changing noticeably. Experienced personalities have shaped the real estate industry for decades – but many of them are about to retire.
What will remain when this generation of leaders leaves? And what will happen if succession is not prepared for in good time?
Demographic change is hitting the industry particularly hard. The age pyramid is steep, while the pipeline of leadership talent is flat. While the market is under pressure to transform – digitalisation, ESG integration, new business models – there is a threat of a loss of experience, knowledge and continuity: the “retirement cliff”.
An industry at a turning point
International studies paint a clear picture. According to Deloitte (2024), around 40 per cent of employees in the real estate industry will reach retirement age in the next ten years – including almost 60 per cent of today’s executives. A study by RETS Associates² (2025) refers to “Peak 65” – the year in which the majority of C‑suite leaders will retire at the same time due to age.
This dynamic is also clearly noticeable in Germany. The VDIV industry barometer3 (2024) cites the shortage of skilled workers as a key risk for property management. The ZIA/EY digitalisation study4 2025 confirms that a lack of skilled workers is the biggest obstacle to modernisation and digital transformation.
This creates a double challenge: companies must tackle their strategic succession planning – and at the same time empower new generations of leaders to take on responsibility.
In shipping, the changing of the guard is precisely regulated: the new crew only takes over once they know the course. In management, too, the quality of the handover determines the success of the next voyage. Those who plan succession steer – those who postpone it drift. When the most experienced captains leave the ship, the fleet needs new points of reference. The retirement cliff is not a storm, but a change of course – provided we navigate it consciously.
Recommendations for practical action
Current studies show that those who act now can actively shape the retirement cliff. Seven areas of action are crucial:
- Anchor succession as an ongoing task – succession planning must not be a one-off project. Successful companies regard it as an integral part of governance – regularly reviewed, adapted and assigned clear responsibilities. (RETS 2025)
- Rethink roles – instead of copying positions. Leadership change is an opportunity to modernise structures: roles can be redesigned, competencies bundled or expanded – for example, in the direction of ESG, digitalisation or stakeholder communication. (RETS 2025, EY 2024)
- Institutionalise knowledge transfer. Mentoring, reverse mentoring and structured handover processes systematically secure experience. Leadership thus becomes a joint effort across generations. (Deloitte 2024)
- Establish competence-oriented talent management. Future-proof organisations develop leadership potential based on skills, not titles. Transparent development programmes and clear competence profiles close the gap between aspiration and succession. (Deloitte 2024)
- Ensure culture and continuity. Succession is more than a change of personnel – it is cultural work. The style, values and credibility of leadership must remain compatible to ensure acceptance and stability. (RETS 2025)
- Design transitions in a targeted manner. Overlap phases between old and new leadership ensure knowledge transfer without slowing down renewal. It is important to have a clearly defined duration and distribution of roles. (RETS 2025)
- Actively involve governance bodies. Supervisory and advisory boards should view succession processes as a strategic issue – not an administrative task. Governance determines whether transitions succeed or stall. (ZIA/EY 2025)
Leadership in the real estate industry is thus at a turning point: between experience and renewal, between stability and change. The task is not to replace the old, but to transfer it wisely into the future. Those who think strategically about succession, secure knowledge and share responsibility will build bridges between generations.
Conclusion: Leadership as a task for the future
The retirement cliff is not fate, but a steering impulse. It marks the moment when companies decide whether knowledge will be lost – or become new capital.
Those who think strategically about succession, develop leadership and consciously shape transitions not only create continuity, but also future viability. In this context, governance means preserving experience, enabling renewal and passing on responsibility – with attitude, structure and vision.
Sources
- Deloitte (2024): Developing the Next Generation of Real Estate Leadership (Next generation real estate leadership | Deloitte Insights)
- EY (2024): Real Estate Board of Directors & Executive Compensation Survey (Real estate compensation survey results | EY — US)
- RETS Associates (2025): The Retirement Ripple – Inside CRE’s Succession Wave of 2025 (The Retirement Ripple: Inside CRE’s Succession Wave of 2025 — RETS Associates)
- ZIA / EY (2025): Digitalisation Study: Real Estate Industry 2025 (Digitalisation Study: Real Estate Industry in Transition | EY — Germany)
- VDIV (2024): Industry Barometer for Property Management (The Industry Barometer of VDIV Germany)
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