CHICAGO, Oct. 28, 2024 – The global wealth management market is poised for exponential growth through 2030, with the human advisory segment leading the way. According to JLL's 2024 Wealth Management Branch Benchmarking Survey, financial services firms are transforming their physical spaces to meet the technology-driven, holistic wealth management demands of an increasing number of millennial clients, who are expected to inherit an estimated US$84 trillion+ in assets from baby boomers by 2045. The research also explores how banking and financial services firms with wealth management branches are expanding into new global and suburban markets, rethinking design and space usage and contending with rising costs associated with rebranding and modernizing.

The traditional investor profile is changing, and this newer, younger, globally connected investor is willing to take on more risk than the baby boomers. They also seek to consolidate their wealth and banking relationships. 47% prefer to work with an investment professional who can holistically meet their financial needs across investments, life insurance, banking and taxes – a 60% increase from 2018, according to a 2023 McKinsey survey.

“As the wealth management landscape is rapidly changing, financial services firms are recognizing that their physical spaces play a crucial role in not only meeting the evolving needs of their wealth management clients but to also align with broader business goals,” said Bobby Magnano, JLL President, Financial Services, Work Dynamics. “Companies are investing in modernizing their branches to provide a superior experience that appeals to a new generation of tech-savvy, sustainability-aware clients.”

As financial services firms continue to increase investment in technology, artificial Intelligence (AI) and automation allow wealth managers to optimize routine tasks and focus on higher-level strategy and client engagement. Wealth management centers then become more than places where clients meet with their advisors; they transform into hybrid environments that blend the digital and in-person experiences, which impacts how firms use their real estate.

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.

For more news, videos and research resources on JLL, please visit JLL’s newsroom.