M&A in the financial services sector has long been a strategic lever for growth, diversification, and technological advancement. As firms navigate regulatory shifts, competitive pressures and the demand for digital transformation, M&A remains a critical pathway for achieving scale and operational efficiency. But as the pace and complexity of transactions accelerate, the margin for integration missteps narrows, especially as it relates to real estate strategy. Overlooking CRE during integration can lead to redundant space, employee disruption and missed synergy targets.

The challenge for CRE leaders is not only to manage physical assets, but to strategically position the portfolio to support transformation while minimizing disruption. With appetite for dealmaking on the rise in financial services, aligning real estate strategy with integration goals in a complex environment is becoming increasingly urgent. In fact, 76% of financial services CEOs who made a significant acquisition in the last three years plan to make one or more acquisitions in the next three years, according to PwC’s 2025 global CEO survey. Additionally, JLL’s Future of Work Surveyrevealed that 61% of financial services CRE decision-makers marked growing revenue through expansion, M&A and new markets as a top corporate goal for their business in the next five years.

Without a well-defined transition strategy, firms risk inefficiencies, cultural disconnects and increased operational costs. CRE decision-makers must be prepared to act swiftly and strategically, get involved early in the M&A process and engage specialized expertise to enhance integration. As M&A continues to reshape the financial services sector, the most successful organizations will be those that proactively align their real estate portfolios with business strategy, supporting cultural cohesion and creating long-term value.

Dealmaking is on the rise amid strategic realignment

Global M&A activity in financial services rebounded sharply in 2024, with total deal value climbing despite a decline in overall volume. Much of the activity was driven by the need to gain scale, simplify portfolios and respond to mounting digital and regulatory pressures. Banks are merging to consolidate market share and reduce the cost of compliance, insurance firms are acquiring specialized capabilities or shedding non-core lines, and wealth managers are targeting alternative asset platforms to diversify fee platforms. In all cases, M&A is being used to accelerate transformation—organically and geographically.

While activity is growing globally, the M&A landscape in financial services remains highly regionalized. Across regions, real estate implications are tied closely to market maturity, regulatory outlook and the subsector dynamics driving deal flow.

A successful portfolio strategy balances efficiency with intentionality—it’s about creating a real estate footprint that is lean, future-ready and positioned to advance the strategic goals of the new enterprise.

Mergers inevitably reveal real estate redundancies including overlapping branches, duplicative office hubs or underutilized assets acquired through legacy growth. But identifying excess space is only the beginning. Portfolio optimization in an M&A context isn’t just about cost-cutting; it’s about reshaping the footprint to reflect the new business model, talent strategy and customer reach. The most successful transitions are those where CRE teams act early, collaborate cross-functionally and approach space decisions with a blend of data and future-focused vision.

In the office segment, BMO’s $16B acquisition of a regional U.S. bank—the largest-ever by a Canadian bank—was supported by a structured integration strategy. The bank established a 40% synergy target, and engaged with JLL Consulting pre-close to help deliver $30M in cost savings. Working collaboratively, the JLL team prioritized portfolio data integration and cleanup, identified rapid synergy savings opportunities and validated scenario feasibility with the business ahead of Legal Day 1. That process surfaced $24.5M in CRE synergies for the office portfolio, including $7M in first-year savings and a 40% rentable square footage reduction in footprint. The effort also projected nearly 50% annual cost savings and positioned the CRE function as a key stakeholder across M&A workstreams.

On the retail side, Webster Bank and Sterling Bancorp used their merger as an opportunity to consolidate and reevaluate the purpose and performance of each branch across their combined footprint. The CRE team engaged JLL as a strategic real estate partner and conducted a strategic review that considered not only lease terms and branch overlap, but also the distinct value each location provided to customers. With overlapping coverage in the Northeast U.S. and similar community banking profiles, the team executed a multi-phased optimization plan, beginning with a strategic branch review and progressing to the consolidation of corporate offices. Importantly, Webster viewed real estate as a platform to reflect the new brand and workforce model. With JLL’s support, the company used the integration to modernize its headquarters in Stamford and implement new workplace standards across key locations.

Whether it be an office or retail-focused merger, CRE leaders need to start with robust data—space utilization metrics, headcount projections, lease obligations and market trends—and complement it with scenario planning to optimize effectively. Consolidation strategies should be tested for downstream impacts on commuting patterns, customer access and ESG performance. For firms with owned real estate, this is also an opportunity to unlock value through selective sale-leasebacks or asset repositioning.

Ultimately, real estate is one of the most visible expressions of strategic direction during a merger. Whether expanding into new markets, consolidating for efficiency or modernizing for the future of work, location strategy must be grounded in rigorous scenario planning and aligned with the newly formed organization’s mission and growth trajectory. Space consolidation should be an enabler of transformation—not just a byproduct. 

During a financial services merger, real estate technology may fall low on the priority list—but neglecting it can delay integration, inflate operational costs and create confusion for employees navigating the new organization. Smart office solutions are critical not only for streamlining space management, but also for providing the visibility, control and adaptability institutions need in the early post-close period.

In one notable example, JLL worked with a U.S. bank that quadrupled in size through a series of acquisitions, helping the institution define and implement a long-term CRE technology strategy. The goal was to create a centralized platform for managing a significantly expanded portfolio—spanning leases, workplace occupancy, maintenance and capital planning. The project involved assessing legacy systems, eliminating redundancies and consolidating into a unified, scalable infrastructure. While the client’s expansion had been fast-paced, JLL helped the bank take a more deliberate approach to technology planning to enable long-term integration success.

Smart office tools such as occupancy analytics, space reservation systems, access control and hybrid work platforms support more than just daily functionality. They also generate real-time data that can help CRE teams assess how space is being used, which locations are underperforming and where additional investment may be needed. This is especially important in hybrid work environments, where headcount no longer always dictates square footage in a 1:1 ratio.

When thoughtfully deployed, technology helps bridge the cultural divide during transitions, easing friction and keeping teams aligned through change. Branded digital signage, unified AV systems and consistent workplace reservation tools signal cohesion across formerly separate organizations. Additionally, tech integration can support sustainability goals by tracking energy usage and enabling dynamic scheduling, both of which are increasingly relevant to ESG reporting.

Rather than viewing technology implementation as a technical exercise, CRE leaders should approach it as a strategic enabler of integration. With the right systems in place, organizations can act on data faster, reduce operating friction and provide a workplace experience that feels intuitive—regardless of an employee’s legacy company.