Mounting geopolitical tensions and economic uncertainty, exacerbated by factors such as rising tariffs and trade disputes, have compelled organizations to intensify focus on strategic cost management and financial de-risking. This imperative is clearly reflected in facilities management, where an overwhelming 84% of surveyed CRE and FM leaders pinpoint budget constraints and escalating costs to operate as a top area of concern. Consequently, 81% of respondents identify cost efficiency and budget optimization as a leading priority for the coming year.

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.

Occupant wellbeing and workplace safety ranks second on the FM priority list (tied with reliability and resilience), underscoring the critical role FM plays in creating high-performing workspaces with a human-centric perspective. JLL’s Workforce Preference Barometer 2025 shows a strong correlation (84%) between employees’ positive experience with workplace environments and their favorable view on office attendance policies; attesting to the impact of a well-managed workspace on employee engagement and satisfaction in the dynamic world of hybrid work. 

FM’s impact on workplace experience reaches further than employees, helping to create a positive experience for all visitors entering the space such as clients, business partners and investors. Beyond office buildings, FM affects a host of end-users such as shoppers, travelers, laboratory and factory workers, patients and healthcare providers. A truly successful FM operation supports not only buildings and assets, but also the safety and wellbeing of all space occupants, ultimately delivering business value.

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.

Meanwhile, AI adoption is rapidly transforming CRE technology. According to JLL’s Global Real Estate Technology Survey, 92% of organizations have piloted AI tools in select CRE use cases or plan to start this year — up significantly from 61% in 2024 and under 5% in 2023. While AI adoption often begins with other CRE functions such as data standardization and portfolio optimization, it has shown meaningful advancement within FM. To deliver on the promise of AI:
 

• Prioritize AI investments in high-impact areas such as performance metrics tracking, predictive maintenance and work order management to deliver faster operational returns.
• Address integration complexities with legacy systems while establishing robust data quality standards and governance frameworks to ensure AI future readiness and deployment success. 

The FM industry is projected to expand by more than $800 billion globally by 2030, but faces significant labor shortages to meet surging demand. The aging workforce and insufficient talent pipeline has escalated labor market competition and hiring costs., while exacerbating talent scarcity in rural, remote locations and high-cost-of-living areas.

To bridge the talent gap, FM leaders are implementing robust succession planning and cross-training, while leveraging AI, automation and data analytics to augment human capabilities and productivity. Future-proofing the FM industry through a tech-empowered, digitally native workforce will not only mitigate workforce insufficiency but also present a pivotal opportunity for transformation.

The message is clear. Facilities management is no longer to be viewed as a mere cost center, but a strategic business partner that fortifies resilience, fuels productivity and ultimately creates a competitive advantage.

Download the full report to explore these insights, and consider how they may inform your organization’s path toward a more innovative and future-ready FM operation.