In recent years Commercial Real Estate (CRE) has undergone significant transformations, including new emphasis on Environmental, Social and Governance (ESG) and Diversity, Equity, and Inclusion (DEI). Despite these initiatives, representation of women in the field remains disproportionately low, particularly in leadership. In 2022, women constituted 44% of the overall workforce (a steady increase from 41% in 2021 and 37% in 2020), but the numbers drop in senior roles (25% for management and 9% in C-suite).1 Furthermore, the pay gap between genders widened since 2015, especially in commissions and bonuses and C-suite salaries, where women earned 56% and 33% less than men, respectively.2

While these trends are commonly attributed to systemic exclusivity inherited from previous generations of the industry,3 our interviews with nine women representing various sectors of CRE (development, finance, lending, brokerage, and academia) identified limited mentorship and sponsorship opportunities, lack of self-confidence and self-promotion, and inadequate workplace policies as major obstacles in gender equality. Across all experience levels, from students and junior staff to senior executives, the consensus is that we’ve come a long way, but there is still a long way to go. In response, we present seven strategies for a more inclusive future in CRE:


1) Disclose transparent and reliable data
Overcoming affinity bias (the tendency to favor individuals with similar backgrounds) in a homogenous culture requires conscious effort, and data is an effective tool for accountability. Recent reporting requirements have improved workplace diversity disclosure in Real Estate Investment Trusts (REITs), but the absence of clear reporting conventions risks inflation of diversity metrics. Moreover, only a small percentage of REITs disclosed diversity within board of directors, despite their significant influence on key business decisions. To enhance transparency and benchmarking, standardized reporting conventions encompassing all major stakeholders should be adopted by wider industry sectors (i.e. brokerage, finance, lending, development, and consulting) to provide accurate insights and inform future strategies.


2) Nurture self-confidence and self-promotion
Women have been shown to be less likely to self-promote or pursue ambitious opportunities than men,4 resulting in missed career advancement and compensation for comparable work. Notably, student and junior-level interviewees expressed concern for their lack of self-confidence and desired guidance in public speaking, leadership, and networking. Women’s groups such as MIT CRE’s WIRE, CREW Network, and ULI Women’s Leadership Initiative would be an excellent platform to host career development workshops and resources that help the younger generation build confidence and seize opportunities for growth and success.


3) Implement flexible workplace policies
Senior-level interviewees highlighted the challenge of balancing family commitment with career advancement. Despite shifting societal norms, lingering gender stereotypes, fear of absenteeism, and the pay gap continue to transfer the burden of family care on women. Both men and women agreed that hybrid work arrangements were beneficial in achieving a healthier work-life balance. Flexible policies that accommodate diverse household arrangements can increase employee satisfaction, productivity, and retention, ultimately fostering a more inclusive workplace.

4) Be wary of “work more, work harder”
Many senior-level interviewees remarked that they had to work twice as hard and do twice as much to earn equal recognition as their male counterparts. While this may have been true in the past and still so today to some extent, this overcompensation mindset only deepens the gender gap. A more impactful disruption would be to address and dismantle barriers such as historical gender biases and discriminatory policies to encourage fair evaluation of professional merit across genders.


5) Curate inclusive camaraderie
Interviewees warned that relying on women-only events can create another layer of exclusivity. Networking and team-building events should be content-driven and foster meaningful interactions and camaraderie across genders. For example, lunch-and-learns featuring female industry experts or group lessons in “business sports” such as golf and tennis are neutral events that could interest and benefit all participants. Even stereotypically “gendered” activities (such as beer gatherings for men or brunch for women) can extend an inclusive invitation through mindful language, graphics, and conversation surrounding these events.

6) Become a mentor and a sponsor
A relationship-based industry such as CRE, where opportunities are often only available through personal connections, poses challenges for women, who are more likely to enter the field without an established network. A Harvard Business Review study revealed that while women excel in leadership capabilities (a crucial asset for CRE’s complex and collaborative environment), their tendency to self-advocate less hindered their visibility and recognition.5 Allies can help by advocating and endorsing the skills and accomplishments of their female colleagues in peer evaluations or job and promotion opportunities.


7) Inspire the next generation
On average, only 25% of faculty and 32% of students in graduate real estate programs in 2022-2023 were women.6 To foster a diverse talent pool, CRE must expand its outreach to a broader audience. For instance, Project Destined offers training, mentorship, and networking opportunities to minority college students, connecting them with industry leaders like CBRE, JLL, and Goldman Sachs.7 “We must start even earlier,” suggests Samara Kaufman, SVP of Finance at Berkely Investments, “to inspire more young girls and inner-city youths to dream about real estate as a career and shaping the future of their own cities and neighborhoods.” These outreach efforts promote agency, upward mobility, and equality to marginalized populations.

Bringing gender diversity to CRE is not only an ethical imperative but also an opportunity to tap into a previously overlooked talent pool. In overcoming the challenges of a historically exclusive culture, these seven strategies offer a comprehensive roadmap for companies, industry organizations, and individuals. Working together, we can build a foundation for a more representative and collaborative future.

ROOM FOR IMPROVEMENT: 7 WAYS
TO CLOSE THE CRE GENDER GAP

References
[1] (Bisnow 2022), (ULI 2021), (CREW Network 2020), DEI Report Survey of 2022 Forbes 2000 Real Estate Shortlist
[2] (Bisnow 2022), (CREW Network 2020)
[3] (Bisnow 2022), (Sisson 2021), (CREW Network 2020)
[4] (Zenger et al. 2019), (Whalen et al. 2022)
[5] Ibid.
[6] (MIT WIRE, 2023)
[7] (Project Destined, 2023)