Organizational silos and AI skills gaps are the top barriers for Singapore real estate leaders

SINGAPORE, 9 September 2026 – Organizational silos are the most frequently cited barrier to real estate transformation for Singapore’s corporate real estate leaders, outranking both AI skills gap and budget constraints that dominate concerns elsewhere in APAC. The shift signals that cross-functional alignment now matters as much as capital or capability in unlocking value.

The research reveals that 37% of Singapore organizations name organizational silos as their top constraint, 12 percentage points above the APAC average of 25%, while AI and technology skills gaps (32%) and budget constraints (32%) rank level with one another. Asia Pacific leads the world in AI adoption across technology management (52%), portfolio optimization (51%) and CRE strategy development (47%); for Singapore, internal organizational barriers is the more immediate obstacle in converting that regional momentum into execution at home.

The findings come from JLL's 2026 Future of Work Survey of over 2,200 C-suite executives and Commercial Real Estate (CRE) leaders across 21 countries, including 100 respondents from Singapore.

80% of Singapore organizations recognize the need for portfolio action in response to AI-driven transformation but only 11% have progressed to actively optimizing AI in their CRE operations, lower than the Asia Pacific average of 15%. Around a third (34%) of Singapore organizations are in active deployment stages, whether optimizing or scaling, compared to 41% across APAC. Singapore’s single largest group sits at the sourcing stage (27%, against 16% across Asia Pacific): the point at which organizations are selecting tools and partners but have yet to deploy them.

The gap between recognition and action is evident in how organizations are approaching AI readiness. While 52% actively monitor AI trends and 42% analyse implications for their CRE functions, only 36% are modelling portfolio implications with dedicated budgets, 35% have change management programs in progress, 31% are considering new locations for AI talent and just 28% are redesigning spaces for human-AI collaboration. Activity thins markedly as it moves from analysis toward portfolio action. This reveals that organizational and capability barriers, not strategic awareness, are preventing transformation at scale.

“Across Asia Pacific, we're beginning to see a divergence emerge between the organisations moving into AI optimisation and the much larger group still monitoring and analysing from the sidelines," said Susheel Koul, Chief Executive Officer, Real Estate Management Services (REMS), APAC at JLL. "What's notable is that the companies pulling ahead aren't necessarily the ones with the biggest budgets; they're the ones building adaptive capability and treating AI as a growth enabler, not just a cost lever. Left unaddressed, that gap has the potential to compound quickly, which is why closing the skills and capability gap now matters more than ever."

Globally, AI and technology skills gaps have emerged as the primary constraint on real estate transformation, cited by 36% of organizations worldwide and 42% across Asia Pacific. This overtakes budget constraints for the first time in the survey's 15-year history, reflecting intense competition for technical talent across industries. Singapore presents a contrasting pattern with 32% citing skills gaps among their leading constraints, 10 percentage points below the regional average, while organizational silos lead at 37%, twelve points above APAC's 25%.

This inversion points to Singapore's distinctive challenge. Singapore organizations cite coordination barriers markedly more often than their regional peers, even as fewer rank the AI skills gap as a leading constraint. Talent concerns remain high regardless: 56% of Singapore respondents expect scarcity rather than improving accessibility over the next three to five years, compared to 49% across Asia Pacific. The pattern suggests the binding constraint is not missing capability but the difficulty of mobilizing it across business units.

Addressing this coordination challenge requires different interventions than talent development programs. Organizations need cross-functional governance frameworks that break down business unit silos, leadership alignment on strategic priorities between C-suite and CRE functions, and integrated data platforms that enable portfolio-wide decision-making. Unlike skills gaps that require long-term workforce development, organizational barriers can be addressed through structural redesign but only if leadership commits to dismantling the fragmented decision-making structures that currently prevent Singapore organizations from capitalizing on their technical capabilities.

This coordination challenge creates a "technology dilemma" for Singapore organizations. Two of the top three portfolio risks are technology-related: cybersecurity and data privacy (53%) and technology and AI disruption (46%), with geopolitical instability (40%) being the other top concern. Uncertainty around AI's impact on space requirements (37%) adds further complexity to portfolio planning.

Organizations must invest in advanced technology to achieve the productivity goals that C-suite leaders increasingly prioritize as core performance indicators but feel acutely exposed to the risks that accompany AI-driven transformation. This dual pressure to accelerate technology adoption while managing technology-related risks, underscores why organizational coordination and governance frameworks have become more critical than budget availability alone.

This integration challenge extends to how organizations think about the relationship between technology investments and physical workspace strategy.

"There is a widespread assumption that AI will reduce the need for physical workplaces, yet our research tells the opposite story," said Kamya Miglani, Head of Research, Real Estate Management Services (REMS), APAC at JLL. "The organisations furthest along in their AI journey are doubling down on their physical environments because they understand that the higher value, more cognitively demanding work that AI enables requires spaces that help people think, focus, and connect at their best, and that technology and workspace experience should not be competing priorities; together, they form the foundation for sustained cognitive performance."

While 67% of Singapore organizations lean towards long-term CRE transformation over short-term cost minimization, executing this transformation creates affordability pressures that complicate portfolio strategy. These cost pressures are multifaceted and intensifying.

Rental cost increases stand out as the most distinctive pressure point for Singapore. 42% of Singapore organizations identify rising rents as a primary cost driver, 14 percentage points higher than the Asia Pacific average of 28%, consistent with Singapore’s standing as one of the region’s tighter and higher-priced office markets. Energy and utility expenses (44%) compound this pressure, with inflationary pressures (38%), technology infrastructure investments (34%), and operating expenses (32%) adding further strain to CRE budgets. Organizations must simultaneously invest in AI capabilities, maintain competitive workplaces, and manage escalating baseline occupancy costs.

As the CRE mandate evolves from cost management to capability enablement, organizations are reorienting their investment priorities accordingly. Reliable technology infrastructure (44%) and advanced technology and AI support (43%) lead as top strategies for achieving employee productivity, surpassing physical space elements like adaptable individual spaces (28%) or wellbeing amenities (27%). This technology-first approach creates a dual imperative: organizations must invest heavily in digital infrastructure while ensuring that physical environments still deliver the high-quality collaborative spaces that AI-enabled cognitive work requires.

This tension between transformation ambitions and cost realities has crystallized into three distinct strategic approaches. Organizations facing multiple constraints prioritize operational optimization within existing portfolios, making disciplined trade-offs when unavoidable costs materialize. Those recognizing capability gaps pursue strategic partnerships to maintain control while outsourcing execution complexity. The leading organizations systematically resolve constraints through capability building, investing in upskilling, change management, and cross-functional collaboration while accepting that near-term cost increases represent strategic investment rather than burden. Singapore organizations must choose which path enables them to navigate cost pressures without sacrificing the transformation needed for long-term competitiveness.

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