Vince Saunders
Managing Partner, Global Real Estate Practice
While many anticipated that 2025 would mark a real estate recovery, macroeconomic conditions—particularly persistent interest rate pressures—have complicated that outlook (Deloitte). Investors remain eager to deploy capital, but their strategies have shifted. Rising costs of capital, inflationary pressures, and tighter lending standards are reshaping how companies evaluate risk and opportunity. Those who build enduring platforms consistently unlock value, even in uncertain environments.
Market slowdowns offer a unique window for firms and individuals to strengthen capabilities through certifications, technical training, and deeper market understanding. Those who use this time to sharpen their skills and strengthen organizational agility are better positioned when activity rebounds.
Seasoned leadership teams understand that success in real estate is not just about thriving in bull markets: it is about contributing meaningfully during lulls.
In conversations with our clients about their talent strategy, below are five strategic capabilities emerging across the industry that reflect how firms are creating opportunity and driving value.
Staying Market-Ready for Investing Opportunities
In periods of uncertainty, preparation becomes a differentiator. During past recessions, firms that prioritized talent development and operational readiness emerged stronger and more competitive. Today, many organizations encourage cross-functional collaboration between acquisitions, asset management, development, portfolio management, and capital markets. Professionals who can operate across disciplines are increasingly valuable and often first in line for leadership opportunities. As firms prepare for anticipated market reactivation, many are rethinking internal processes to enhance efficiency and strengthen team capabilities. Networking and market intelligence remain essential, ensuring leaders stay engaged, informed, and prepared to act when deal flow resumes.
Thinking Strategically in a Shifting Market
As market dynamics evolve, firms are reassessing risk and opportunity with greater precision. Many organizations are building internal strategy, research, and market intelligence teams to inform investment theses and guide capital decisions. Engagement in workouts provides professionals with hands-on insight into deal mechanics and prepares them to structure future deals more effectively while proactively addressing potential risks. This kind of strategic thinking is essential for navigating volatility and positioning both teams and firms for long-term success.
Unlocking Value Through Operational Excellence
As many firms shift focus from new acquisitions to optimizing existing portfolios, operational excellence has taken center stage. High-performing professionals are identifying efficiencies, rethinking space utilization, and enhancing tenant experience. Managers are boosting Net Operating Income (NOI) through preventative maintenance, renegotiated vendor contracts, and ancillary income streams such as parking fees or event spaces. In today’s climate, the ability to preserve and grow NOI is a key differentiator.
Communicating Value to Stakeholders
Transparency and storytelling are increasingly essential for investor relations. Firms are investing in research and strategy to translate property insights into compelling narratives. Technology is also playing a growing role in how performance and strategy are communicated to LPs. From dashboards to data visualization platforms, the ability to clearly articulate value helps firms build trust and maintain investor confidence.
Expanding Capital Markets
Despite a slowdown in fundraising momentum, firms are actively exploring alternative capital sources and creative structures with existing partners (McKinsey). Even amid uncertainty, many companies—particularly those with flexible private capital—are leaning in. With traditional bank lending tightened, demand for private credit and preferred equity solutions has grown. Preferred equity is increasingly used to fill funding gaps while offering investors fixed returns and downside protection. Leadership teams are also structuring joint ventures and leveraging high-yield strategies to unlock capital and maintain deal flow.
Cultivating Future-Ready Talent
Real estate resilience requires more than weathering the storm; it means using uncertainty as a catalyst for growth. Firms and leadership teams that remain engaged, strategic, and adaptable are not only preserving value, they are actively creating it. As the market continues to evolve, those who embrace these capabilities will be best positioned to lead and thrive.
Success in these areas calls for thoughtful investment in the leadership pipeline. Hiring and developing talent with the mindset, skills, and cross-functional fluency to drive transformation is essential. Whether it’s through internal development programs or strategic recruitment, DHR Global’s Real Estate Practice partners with leading industry companies to develop the next generation of adaptive leaders, setting the standard for innovation and growth.