The solution to the potential shortage is tapping talent from Generation Y, the 46.7 million people born between 1982 and 1993. That means re-focusing company practices to bring them in greater alignment with the values of the incoming workers. "To successfully recruit members of Generation Y, real estate companies must develop and communicate their vision and differentiate themselves from their competition. Based on Gen Y's interests, companies should promote their sound values, technologically advanced workplaces and global scope," they note.

Chicago-based FPL Advisory Group predicts most real estate firms will be hiring this year, despite fallout from the credit crunch. The outlook is particularly strong in the commercial sector, perhaps in anticipation of the imminent talent shortage.

About two-thirds of senior US real estate executives responding to FPL's annual hiring and compensation survey state they expect to add staff in 2008, says Bill Ferguson, FPL's co-chairman and co-CEO. The number jumps to 75% among just those who self identify as commercial ownership/services firms, while 5% plan to scale back. Ferguson says double-digit pay raises are becoming less common, although most respondents expect pay levels to increase at least moderately industry-wide.