The Global Real Estate DEI Survey data crunched detailed replies provided by 216 firms between July and September last year to give hard data on practices and employee demographics at North American, European and Asia businesses.

NAREIM (The National Association of Real Estate Investment Managers) and corporate executive search firm, Ferguson Partners, led the survey efforts, while respondents represented 296,902 full time employees and nearby $2 tln of AUM.

Underrepresented groups focused on
According to the survey authors, key findings show commercial real estate firms are increasingly focused on attracting more underrepresented people to the industry as a whole – with 31.6% of firms saying the most impactful DEI policy in 2023 was creating scholarships and internships to increase diversity in candidate pools, up from just 18% of firms the year prior.

In terms of employee demographics, representation of women in commercial real estate ranged from 39.8% to 45.6% across the regions surveyed.

5% increase in DEI initiatives
The Global Real Estate DEI Survey said almost all commercial real estate firms have DEI initiatives in place in their organizations, with the number of firms adopting formal strategies increasing 5% year-over-year, in this the third edition of the survey.

While the study’s authors cautioned against too much year-on-year comparison due to greater respondent numbers and an expanded range to take in the likes of architectural, construction firms, and brokers, they said: ‘Almost 96% of firms have DEI policies and practices in place in their firms, with 56.4% enacting formal strategies. That marks a 5% YoY increase in firms approving documented, holistic DEI programs.’ Just 4.2% of firms do not have DEI programs or initiatives, the results reveal.

DEI fatigue?
Zoe Hughes, CEO of NAREIM, said: ‘This year’s Global Real Estate DEI Survey marks an important point in time both for the CRE industry and the Survey itself. Not only is this Survey supported by more industry associations – but it comes at a time when DEI fatigue is growing. We know only too well that DEI is not an afternoon’s training – or something to ponder only during Black History Month. It is a process that brings inclusion and belonging into the heart of talent management process – and the people that drive the success of any firm. This Survey is the first step in that process, and we are thrilled to be a part of it with so many esteemed associations.’

Lisa Pendergast, executive director at CREFC (Commercial Real Estate Finance Council), said: 'CREFC is pleased to be a part of Global Real Estate’s DEI Survey. Our DEI initiative was first launched back in 2020 and continues to thrive. It has evolved over the years with a growing number of CREFC member participants all with a keen focus on being instruments of change
within our industry and throughout the US Survey’s like this one are vital to move DEI concerns forward and ensure progress goes unimpeded.'

Gail Haynes, president of the influential association PREA (Pension Real Estate Association), said: ‘The first step in managing and improving is measurement. For the industry, this latest edition of the Global Real Estate DEI Survey serves as a valuable benchmark, of both the demographics of the industry and the policies and strategies that firms are using to make the industry more inclusive. By responding, the firms represented in this year’s survey have demonstrated their own commitment to measuring and improving DEI and leading the way to an industry that better reflects the strengths of our diverse world.’

Europe
In Europe, which represents 11.9% of respondents, key findings include:

• 39.8% of all commercial real estate roles in Europe are held by women, with women making the most gains in 2023 at the executive management level.
• 25.4% of executive management roles are held by women, up from 12.9% in the year prior.
• European firms actively hired and promoted women for the most senior roles in their organizations in 2023.

Industry reaction
Industry associations that supported the survey lined up to express their views on the dozens of findings from the report.

‘Hard data shows clear momentum’
Paul Richards, MD at AREF, the Association of Real Estate Funds, said: ‘A look around the real estate investment industry will tell you it’s palpably more diverse than even a few years ago. This authoritative survey underlines such anecdotal evidence with hard data. In Europe, for example, some 56% have a dedicated budget for diversity issuers and nearly 78% are now reconsidering the way they hire new staff. There is clear momentum towards better diversity – as the industry continues to evolve positively.’

‘Commitment remains steadfast’
Melanie Leech, chief executive at the BPF (British Property Federation, said: ‘The BPF is delighted to join the collaborative effort to deliver the Global Real Estate DEI Survey. In order to become a more diverse and inclusive sector, transparency is important so we can hold ourselves to account and measure our progress. The survey results this year show, importantly, that the commitment of firms actively pursuing a commitment to greater diversity and inclusion remains steadfast and that the most senior leaders recognise their critical role.’

‘DEI programmes a critical and growing priority’
Sonia Huntley, senior VP of Diversity, Equity, and Inclusion, at the ULI, said: ‘The results of this year’s survey and the greater number of participants show that companies remain committed to improving outcomes and experiences for women, people of color, and other underrepresented professionals in the industry and that DEI programs remain a critical and growing priority for leaders across the real estate value chain. ULI looks forward to driving further progress on a diverse, equitable industry through our research, programs, member engagement, and thought leadership globally.'

‘Much to do, but promising’
Sybil Taunton, head of Diversity, Equity and Inclusion at the RICS (Royal Institute of Chartered Surveyors), said: ‘Supporting this survey and encouraging our Real Estate firms to take part aligns strongly with RICS DEI priorities. We greatly value the importance of data to better understand what’s happening in the industry and where we need to focus our collaborative efforts to address and remove barriers and create a more inclusive and equitable sector. While the data shows there is much to do to improve resourcing and support for DEI programmes and initiatives, it is promising to see so many organisations coming together globally to highlight these issues and take action to improve the industry together.’

‘Much work to be done, but commitment is there’
Dominique Moerenhout, CEO, EPRA (European Public Real Estate Association), said: Europe has made great progress in embedding DEI in real estate, but there remains much work to be done. By regularly examining our methods and policies, we ensure that our industry not only mirrors the diverse communities we serve, but also sets a benchmark in creating equitable and inclusive work environments. Together, we are committed to fostering a more diverse and inclusive real estate sector.’

More key global findings
Other key findings from the Survey Volume include insights from budgets and data collecting efforts:

• Budgets: Dedicated DEI budgets are increasingly important for improving representation by underrepresented groups. In 2023, 36.3% of firms had dedicated DEI budgets, up from 30.4% in 2022 – a YoY increase of 19%.

• Dimensions of diversity: Nine out of 10 respondents address race/ethnicity/nationality within their DEI programs followed by gender, sexual orientation and age. More firms are also tracking family status in 2023 than in the prior year, while firms tracking mental health conditions has also increased.

• Impact: Providing DEI-related training is the second most impactful DEI policy after creating scholarships and internships. One quarter of firms have seen training have the greatest impact on achieving DEI goals, up from 14.6% YoY.

• Inclusion: Promoting inclusive social events is the most common strategy for promoting an inclusive work culture, with almost 9 out of 10 firms adopting the policy in 2023 or planning to implement it in the next 12 months.

• Pay equity: CRE firms are working to increase the level of pay transparency at their organizations, with 62.9% anlayzing gender pay gaps and 52.8% using redemption strategies. Pay equity initiatives being implemented include annual compensation review, benchmarking against industry data, using job bands to determine salaries and working with a third party to analyze pay levels.

The full list of 19 associations backing the report include AFIRE, AIA, APREA, AREF, BOMA, BPF, CFMA, CoreNet Global, CREFC, EPRA, NAIOP, NAREIM, NCREIF, OSCRE, PFA, PREA, RICS, REALPAC and ULI.