Businesses have realized their corporate real estate (CRE) strategy can help solve their most pressing challenges. But the most forward-thinking leaders are delving even deeper.

They’re analyzing the macro shifts in society to understand how they will impact our future relationships with our workspaces, our buildings and even the cities we live in. This perspective allows leaders to adjust their CRE strategy to better prepare their business for what’s next.

But the future of spaces is not only linked to the deep-rooted societal issues that JLL’s leaders explore each year at The World Economic Forum Annual Meeting—there are also very practical considerations. For example, how inspiring is that building environment and the area? Is the building located in an area to tap into the necessary talent? In this piece, we put both the shifts and those practical considerations under the microscope and explore what they mean for you, your businesses and your future.

Retrofitting and re-purposing ‘established’ building assets presents owners, occupiers and CRE investors with an opportunity to meet the demand for future-ready spaces.

The retrofit movement is already gathering momentum. According to The Economist, 70% of executives working in urban redevelopment note that over the past three years, attention has shifted from building anew towards upgrading existing buildings.

The challenge will be to execute these retrofit projects in the most cost-effective ways possible and to strike partnerships that ensure retrofitting can be delivered at the scale needed. This includes leveraging advances in low carbon materials—such as low carbon cement, recycled steel, and sustainable alternatives—which are becoming central to retrofit strategies as the industry addresses the projected rise in embodied carbon from building.

JLL’s latest research reveals a convergence of market fundamentals that is making the business case for low-carbon, energy-smart strategies stronger than ever for value creation. Yet, for the CRE industry to meet climate targets and tenant demand, retrofit rates must accelerate more than fivefold. 

Buildings can help solve the energy problem. Electricity costs are proportionate to 4%-26% of rental value, making efficiency improvements essential for building competitiveness. But buildings can do more than just consume energy—they can generate, store and actively manage power. This shift from consuming energy to actively managing and generating it can unlock additional revenue increases of 25%-50%.

JLL’s analysis across 30 markets shows that 1.5 billion square feet (~140 million square meters)—or 70% of potentially obsolete stock—sits in markets with strong sustainability value-add potential, representing a massive addressable market for investors ready to capitalize on this opportunity.

To become a leader in the future of spaces, businesses need to rethink how the built environment can be shaped to meet evolving needs.

For those ready to embrace change, there is a huge opportunity to use commercial real estate as a driver for talent attraction and retention, strategic reinvestment of finances and cost efficiency. 

We help businesses like yours overcome the obstacles so they can realize these benefits. Our expertise and deep market insight allow us to create cohesive CRE strategies built on tech-enabled, thoughtfully designed spaces that bring out the best in your people now—and in the future.

Check out our Illuminations series: Real Estate Rising