Passing the Leadership Torch – Feb. 17, 2026
The “Peak 65” phenomenon has come to commercial real estate, and the time for careful succession planning is now
It’s not a rarity to see commercial real estate leaders going strong well into their seventies, eighties and even nineties. Yet as in any industry, it’s reasonable to assume that CRE leaders will begin winding down as they approach age 65—a milestone that an increasing number of them are reaching.
The industry is now roughly in the middle of a four-year period known as “Peak 65,” which is seeing approximately 4.1 million Americans reaching that age every year through 2027. The implications for CRE are sobering: a 2025 Deloitte report projected that nearly 60% of industry leaders are expected to retire by the end of next year.
A new white paper from recruitment firm RETS Associates notes that this demographic phenomenon “is already reshaping hiring strategies, succession planning and long-term organizational design across CRE platforms … What was once a slow-moving issue has become a near-term operational challenge—particularly for firms navigating tighter capital markets, elevated execution risk and increasing specialization.”
This challenge has emerged at a difficult point in the cycle. It’s a combination of a still-tight lending market, looming maturities and increasing operational complexities. While it wouldn’t be accurate to use the analogy of a perfect storm—a metaphor that really should be invoked sparingly—the situation is exacerbated by a general shortage of experienced specialists.
“The vast majority of the clients that come to us want specialists,” said Kent Elliott, principal at RETS Associates. “They’re not looking for a generalist who is going to have a one-year learning curve. Our clients are looking for candidates with a track record specific to the niche in which they’re looking to execute.”
For succession planning, the emphasis is on specialization. Replacing long-tenured leaders is no longer a straightforward backfill; it is now a strategic decision with lasting implications for performance, risk management, and capital execution, the white paper states.
The white paper identifies key lessons emerging as Peak 65 transitions accelerate. They include the following:
- Timing is critical—and narrow. “Many firms wait too long, reacting only after an unexpected departure. Others move prematurely, creating unnecessary overlap or internal disruption. The most effective succession plans typically begin six to 12 months ahead of a planned transition, depending on the role. This window allows for meaningful knowledge transfer without slowing execution or inflating costs.”
- Legacy roles often require recalibration. “Executives who have served for decades frequently accumulate responsibilities organically over time. Succession planning forces firms to reassess what the role truly requires going forward. In many cases, the right answer is not replication, but simplification—clarifying priorities, decision rights and expectations in line with today’s operating environment.”
- Familiarity should not outweigh performance. “These are high-impact hires, yet many organizations default to internal candidates or personal networks. The strongest outcomes come from widening the lens and prioritizing qualification over comfort—even when that means looking beyond familiar circles.”
Much of today’s succession activity is centered on older Millennials and younger Gen X professionals—leaders who combine institutional knowledge with fluency in evolving capital strategies, including private credit, restructurings and distressed investing. Here again, though, recalibration is in order: these professionals expect clearly defined mandates and authority, rather than inherited ambiguity.
“There needs to be some overlap so that the intellectual capital can be passed on, with a minimum of three to six months for this to work effectively,” Elliott said. This overlap provides protection, especially in a volatile market cycle such as the current one, and mitigates the risk of unexpected departures.