• From boiler room to boardroom: The $3 trillion facilities management (FM) industry has emerged as a critical strategic function that deeply impacts employee and occupant experience, business continuity and enterprise resilience.

• A cost imperative amid economic volatility: Cost efficiency dominates FM priorities, with 84% of leaders identifying escalating operating costs and budget constraints as their top concern. Streamlining supply chains and an increasing reliance on strategic partnerships drive cost savings, while data and technology are being used to enhance automation and workflow efficiencies.

• Human-centric FM drives value beyond buildings: Occupant wellbeing and workplace safety ranks second on the priority list, underscoring the critical role FM plays in creating high-performing workspaces. A successful FM operation should develop a safety-first culture, balance efficiency with human experience goals, and incorporate occupant satisfaction and engagement metrics.

• Artificial Intelligence (AI) adoption is underway to transform the FM industry: 28% of organizations have embedded AI solutions in their FM operations — rising to 46% for large organizations (100,000+ employees) — with many advancing from initial pilots to scale across multiple function areas and facilities. The continued acceleration of AI adoption will present a pivotal opportunity for industry transformation, addressing the growing talent gap by augmenting human capabilities and productivity.

In an environment marked by economic headwinds and technological acceleration, FM has emerged as a critical strategic function that extends far beyond traditional building operations — deeply impacting occupant wellbeing and performance, as well as overall business health. As organizations navigate geopolitical volatility and evolving workforce expectations, the need for more intelligent, data-powered FM has never been more essential.

This year’s JLL Global State of Facilities Management Report draws upon insights from 248 organizations with headquarters in more than 20 countries, spanning a diverse range of industry sectors and real estate portfolios. The research highlights six key themes on how leading organizations are addressing their FM challenges through strategic outsourcing and emerging technologies, with a dual focus on cost-cutting and creating exceptional workplace experiences. 

Outsourcing and streamlining supply chains proves to be the leading cost-reduction measure. Organizations can achieve this by: 

• Consolidating contracts and suppliers to make the most of volume purchasing power and streamline vendor relationships.
• Prioritizing providers that demonstrate a deep business understanding and the ability to partner as a strategic advisor.
• Collaborating with tech-powered providers to create joint cost-saving opportunities; prioritizing those offering self-delivery and integrated capabilities.
   

Technology and data are also critical levers for FM cost control. More than half of organizations are applying technology and AI to automate workflows, while converting real-time data into strategies. This is often combined with data-driven monitoring and benchmarking of asset performance and expenditures to capitalize on cost-saving opportunities.

While nearly one-third of organizations (32%) plan to increase their FM software investment in the coming year, the share marks a decline from prior years (39% in 2024 and 42% in 2023), as organizations face greater uncertainty in capital planning and take a more cautious approach amid broad economic volatility.