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Technology is taking the lion’s share of budget
Adaptability drives value
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Many employees continue to resist employers’ calls back to the office. From noise and a lack of privacy, lots of offices still lack the comforts of home.

Companies are addressing the issues with better workspaces. But there’s more often than not a major hurdle: costs are rising for construction, sustainable materials and fittings like sound-proof phone booths or electrical equipment.

Around the world, labor shortages and wage increases are compounding the issue. In EMEA alone, labor costs have risen over 12% in the last 12 months and the average fit-out cost is up 5.2% year on year, according to JLL’s latest Fit-Out Cost Guide.

In Asia Pacific, material price increases have stabilized, but high energy costs and supply chain disruption remain factors, while in the Americas, evolving office design strategies and occupier requests are increasing tenant-influenced costs.

“Supporting both hybrid and face-to-face work comes at a price,” says Andrew Hudson, Senior Director for Project Execution with JLL PDS. “It requires adaptability, collaborative and private space, multi-functional rooms and integrated technology solutions – all of which take capital expenditure.”
Client meeting

JLL’s Global Technology Survey found more than three quarters of corporate real estate leaders are investing in better office technology, while the 2024 Global Occupancy Benchmarking report shows 39% have specifically enhanced their conference room tech.

Yet tech alone won’t improve productivity. “It's extremely important to train your people on how to get the best out of it,” says Romeu Carpinteiro, Head of Commercial Ops at JLL design and fit-out company,Tétris.

It’s an issue that many of us are familiar with. Cisco found seven out of 10 employees reporting proficiency issues with videoconferencing platforms and cloud-based document sharing, while two thirds of employees said current meeting rooms were ineffective.

Occupancy sensors, plus those that support wellness and sustainability goals by monitoring light and air quality or energy use, are also now commonplace.

With 86% of CRE leaders focused on cost reduction, Carpinteiro says this tech investment can rapidly pay for itself. “It helps reduce overall operating costs and provides hard metrics on post fit-out ROI.”