The pressure to differentiate within the wealth management space is intensifying. By 2027, experts predict 16% of wealth management firms will be acquired or exit the market, which is double the historical average. Curating a first-class experience for clients and potential clients is vital for survival, and the physical space plays a key role.

A reported 36% of firms have already undergone design and refurbishing within their portfolio, with 43% refreshing existing branches and 29% opening new locations with updated designs. To provide a premium experience, many new spaces are highly amenitized with hospitality-driven elements such as lounges, wellness rooms, butler services and multi-function and flex-work offerings.

“Financial services firms are redesigning their wealth management branches to appeal to a younger clientele,” said Donielle Watkins, Managing Director and Financial Services Industry Lead, JLL Project and Development Services. “The future wealth management space should deliver a modernized aesthetic with premium materials like leather, marble and natural stone while also incorporating ESG principles, wellbeing and circularity into design. This marks a significant departure from conventional branch designs that featured traditional finishes and targeted a specific type of investor.”

Inflation and supply chain disruptions have pushed up build costs for redesigning or constructing new wealth management centers. 64% of North American respondents reported substantial increases in build costs over the past two years, with some experiencing hikes of up to 20%. Furthermore, half the firms surveyed anticipate further cost increases of up to 20% over the next 18 months.

To navigate these challenges, many firms are rethinking their investment strategies. According to JLL’s Survey, half plan to maintain stable levels of capital investment in their real estate portfolios over the next three years while 28% plan to increase investment by up to 20%.

In an industry that is rapidly transforming, JLL Financial Services offers the right alchemy of integrated technology, sustainability strategies and a forward-thinking approach to our banking, insurance, investment management and fintech clients. Whether clients are looking for us to optimize their real estate portfolios or manage their retail banking facilities, we serve as a trusted partner by developing real estate and advisory solutions to help accelerate growth while balancing risk. Armed with unmatched industry-focused intelligence and a dedicated understanding of the complexities of this highly regulated business, our experts deliver a consultative approach to clients with a spectrum of services and products throughout all stages of their real estate lifecycle.

Our ethos towards hiring and training top talent and providing a seamless value-driven client experience has positioned JLL as a domestic and global market leader within the financial services commercial real estate business. Visit us.jll.com/financialservices to learn more.

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