2025
FINANCIAL REVIEW & FORECAST
2026
Don’t Let Your Legacy Go Off-Market High-stakes planning for real estate leaders By Jennifer Comella CBIZ
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very real estate firm risks losing clients, revenue and hard-earned value without a clear succession plan. From residential sales to commercial property management and development, proactive leadership planning preserves your company’s legacy and growth potential. For owners considering retirement or a new venture, the question of who takes the reins can’t be ignored. Learn how your company can confidently carry out succession planning.
Strategies for real estate succession
Real estate firms face unique succession challenges. Much of their value depends on client relationships, team expertise and institutional knowledge — not just assets. Without a thoughtful transition plan, leadership changes can disrupt operations and erode trust. The stakes are high. According to the Exit Planning Institute’s 2025 National State of Owner Readiness Report, 75% of owners plan to exit their business within the next decade. Yet many delay planning due to daily demands. Firms that wait too long often lose clients, revenue and longterm value. To secure your company’s future, focus on these critical areas before implementing a succession plan:
ing and emotional intelligence. Offer high-potential individuals opportunities for cross-functional experiences, leadership development and mentoring.
Clarify your vision
Strengthen governance + structure
Start by defining what a successful succession entails. Will your business stay private or transition through a sale, merger or employee ownership plan? Identify potential successors – family members, internal executives or outside candidates – and establish a timeline for transferring ownership and leadership. A clear vision aligns stakeholders, supports decision-making and avoids last-minute surprises.
Transparent governance helps reduce risk. Review decision-making authority among ownership, boards and management teams. Update operating agreements, buy-sell contracts and compensation plans to reflect future leadership. Advisory boards or committees can support new leaders and ensure accountability, helping minimize conflict and reassure stakeholders.
Develop future leaders
Ownership changes affect finances, taxes and access to capital. Obtain an objective business valuation and explore transfer options, such as sales, gradual buy-ins, gifting or hybrid
People, not processes, determine success in succession planning. Assess internal candidates based on technical skills, leadership ability, strategic think52
Address financial + tax considerations
strategies. Modeling tax effects for current owners and successors helps prevent surprises. Advance planning also supports financing strategies, including debt, earn-outs or external investment, reducing liquidity risk during the transition.
Protect knowledge + relationships
Institutional knowledge and client relationships are invaluable. Outgoing leaders should document key processes, pipelines and client preferences. Introduce successors to clients, investors and partners through joint meetings and phased involvement. Careful knowledge transfer protects revenue, preserves trust and minimizes disruption.
Communicate effectively
Clear communication helps keep succession plans on schedule. Create a timeline for sharing information Properties | January 2026