Ahead of speaking at IMN's Real Estate Family Office & Private Wealth East conference, October 9-10 at the Loews Coral Gables, Cory Bultinck shares the critical preparation for successful succession.

Every real estate firm eventually faces the same question: Who will lead next? Successful firms ask it early, giving them time to develop successors and reassure employees, partners and investors.

Smooth leadership transitions create long-term stability while strengthening culture, investor confidence and team morale today. To understand what works, Wipfli and the NAIOP Research Foundation spoke with 22 senior commercial leaders about their transitions. Here’s their advice:

1. Be proactive and start early.

Waiting for a crisis to spark succession planning is risky. Today’s leaders spent years building up their expertise; the next generation needs a long runway to grow, too. One of the executives we interviewed estimates it can take five to six years to complete a transition.

Think of succession planning as an investment in your firm’s longevity rather than a task to kick down the road. Starting early allows current leaders to mentor their successors, gives rising talent time to build relationships, and boosts everyone’s confidence during the transition.

Early planning also leaves room to explore different succession paths, whether it’s inheritance, a partner sale or a third-party buy-in.

2. Ensure strategic alignment.

Succession planning goes more smoothly when everyone shares the same vision for the firm’s future. That means looking beyond the next quarter and talking about where the business should be a decade from now. Then you can shape succession to support that trajectory.

Clarity around the long-term vision helps you select successors who align with the strategy — and it unites the wider team around a common goal. For family-owned firms, alignment is even more critical, so office disagreements don’t spill over into family disputes. As one leader explained, their succession aim was to create “something that holds the family together and that they can also pass on to their kids.”

By establishing strategic alignment early, firms improve their chances of a smooth transition and foster a stronger commitment to the company’s future.

3. Combine internal expertise with outside perspective.

The right mix of internal ownership and external perspective helps firms move forward with fewer bumps and greater confidence.

Your team knows the business better than anyone, so many firms create an internal council to guide the process and provide governance.

At the same time, outside advisors — from attorneys to accountants to consultants — can bring objectivity, structure and best practices to the plan. They can also help navigate sensitive conversations that families or partners may struggle to have on their own.

4. Build a solid financial plan.

A successful transition needs to protect the value of the business, minimize tax exposure, and provide a fair exit for departing leaders. In real estate, it can be challenging to hit all three goals — many firms are asset-rich but cash-poor, making liquidity an issue.

The first step is to assess your assets and liabilities through the lens of succession. Addressing gaps in advance gives the firm more flexibility when the time comes. That may mean buying life insurance to cover estate taxes or buy-sell obligations, untangling personal and business finances, or creating clear buy-in structures for future owners.

5. Protect your firm’s culture.

Strong firms are built on cultures, and leaders want those values to carry forward through a transition. When evaluating potential successors, you should consider their skills and how well they embody the culture you’ve worked to create.

Culture takes time to instill, so this is another task to start early. Ongoing conversations about what matters help successors understand what should endure, whether it’s a commitment to employees, community engagement or charitable giving. Protecting cultural values ensures succession preserves the identity of the firm.

6. Communicate clearly and often.

Open communication is one of the most valuable succession steps you can take. Speaking plainly and directly with all stakeholders — from potential successors to employees, partners, lenders and investors — reduces conflict and builds trust. Consider what each audience needs to know to support each stage of the transition — and feel confident in the outcome.

Transparency also helps prevent surprises. One family-owned firm leader said keeping plans secret until the last minute is the “worst possible model.” Instead, keep stakeholders informed early and often. And document decisions in clear, simple terms that everyone understands.

7. Identify and develop the right talent.

Choosing a successor starts with understanding your current leadership roles and what it will take for the next generation to fill them. Define the firm’s needs first, then evaluate candidates against that benchmark.

Look at three areas: external experience at other firms, internal experience with your own business and hands-on exposure to leadership responsibilities.

Don’t assume you know a candidate’s aspirations — ask. One leader said that simple performance review questions like “What would you like to be doing that you’re not doing now?” can help reveal who’s eager to take on more.

8. Invest in leadership development.

Strong successors aren’t born ready — they’re shaped by training, mentorship and experience. The next generation needs structured opportunities to grow into leadership roles.

Start by gradually expanding a successor’s leadership duties while current leaders are still in place. This creates space for trial and error, guided mentoring and learning from experience. Some firms even benefit from a formal transition period, during which incoming and outgoing leaders share responsibilities before the handoff is complete.

9. Stay flexible and reassess your plan often.

Succession plans aren’t written in stone. The most effective strategies are clear but adaptable, allowing leaders to respond to contingencies and unexpected developments. As one real estate leader said, “You have to make halftime adjustments.”

A practical way to do this is to treat succession as a rolling three-year plan; it’s something you revisit and refine regularly, rather than locking it away until it’s needed. Flexibility keeps the plan relevant and helps your firm prepare for whatever comes next.

Looking ahead

While every transition is unique, some things remain constant: careful planning, clear communication and a long-term vision create stability during times of change. And the earlier you begin, the more options you’ll have.

For a deeper look at how to navigate succession, visit Wipfli’s website or see the full NAIOP report based on our interviews.

Cory Bultinck, Partner at Wipfli, will be speaking at IMN's Real Estate Family Office & Private Wealth East conference, October 9-10 at the Loews Coral Gables.

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