The commercial real estate sector is experiencing a severe talent shortage, with property management companies heading to the frontlines to lure top talent with attractive salaries. The success of a commercial real estate project largely depends on the commercial operation company, and at the core of these companies lies "talent." Indeed, at the start of this year, many cities such as Kunming and Guizhou found themselves grappling with a "talent shortage" in the commercial real estate sector. Many companies are actively recruiting, some even resorting to headhunters to poach talent.
"Across the industry, there's a lack of talent; it's a nationwide issue. In Kunming, for instance, the annual salary for some commercial real estate general managers has reached 1-2 million yuan, yet suitable candidates remain elusive," said Mei Yongfeng, General Manager of Kunming Department Store Group Commercial Management Co., Ltd. According to Mei, given the reality of this talent shortage, some real estate companies are proactively seeking talent outside their provinces, bringing in senior executives from developed cities while cultivating middle and lower-level talent internally.
Finding qualified commercial talent is proving difficult, leading some companies to extend olive branches beyond provincial borders. Kunming, a city with over 6 million people, ranked third in land sale revenue last year and second in newly added commercial real estate area. Its per capita commercial space of two square meters exceeds that of Hong Kong, reflecting the explosive growth trend in commerce this year. Alongside concerns about market absorption, industry insiders worry whether commercial operation companies are mature enough and if there’s sufficient talent to support the early recruitment and later operations of these commercial projects.
The talent shortage is an undeniable fact for Kunming's commercial real estate sector. According to Mei, "Commercial real estate has only been developing in China for ten years. In such a short time, talent is extremely scarce. There are those who come from retail, real estate, or advisory roles, but true commercial talent is rare, especially those with practical experience."
Yunnan Huajun Commercial Management Company, which entered the commercial real estate sector in 2010, is responsible for the leasing and operations of the 60,000 square meter commercial area of Qicai Junyuan. The company faced challenges in its initial recruitment of commercial talent and offered attractive benefits to attract top talent nationwide. It’s reported that one-third of the company's commercial operation talents are recruited from across the country.
Not only local enterprises struggle to find talent, but also Dalian Wanda, China's largest commercial real estate developer, is aggressively recruiting. "High salaries alone cannot attract talent for many commercial projects. Talent also considers whether the corporate platform suits their future development," Mei analyzed the reasons behind the difficulty in finding commercial talent.
Talent cultivation should focus on localization and align with coastal cities. Many commercial real estate property management companies choose coastal or world-renowned firms to safeguard their projects. These established companies bring advanced management concepts and experiences, but the challenge remains: how to achieve localization?
"Localization is a crucial path. The best choice is to combine localization with internationalization," Mei emphasized. A realistic challenge is that cross-regional chain output management is still rare in China. External management companies entering each project typically send only a few management personnel. Truly implementing localized management remains unfulfilled by even the top five firms, who offer only short-term outputs. Therefore, genuine talent must be cultivated by local enterprises themselves.
There seems to be no quick fix for the localization of commercial real estate talent. Larger local commercial management companies mainly cultivate middle and lower-level employees internally while also introducing talent from Shenzhen, Shanghai, and other regions across the country. Introduced talents are primarily senior executives. To cultivate their own commercial talent, commercial operation companies not only need strong commercial accumulation but also require a commercial platform.
In terms of commercial recruitment, most projects favor attracting Fortune 500 companies like Walmart and KFC, making differentiation challenging. Projects without unique features find it hard to stand out in competition. Industry experts believe that differentiated positioning is closely related to factors such as the project's location, scale, surrounding consumer demographics, and competitors. For example, Baishida New World succeeded in the traditional San Shi Street business district by positioning itself as a young and fashionable mall.
The currently recruiting Seven Color ME TOWN differentiates itself by bridging local consumption with coastal cities and international brands, highlighting its appeal through the introduction of brands like Yolaicheng Longcheng International Cinema, Uniqlo, and Sephora.
[Source Link: http://www.0710rcw.com/]