• 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. 

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.

Operational reliability remains the foundation of effective FM. Business continuity preparedness for mission-critical environments such as data centers, laboratories, hospitals and public infrastructure — where a single operational failure can cascade into high-impact events — is the foremost risk management priority. In addition, forward-thinking FM leaders are:

• Incorporating proactive risk strategies that align with the organization’s core challenges and long-term growth objectives.
• Building business continuity frameworks that address the full range of interconnected risks, such as workforce contingency planning, cybersecurity protections for smart building systems and IoT infrastructure, energy supply reliability, as well as climate event adaptability and preparedness.

A holistic framework will help create a resilient enterprise and elevate the role of FM from a functional service to a strategic business partner.

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 modern organization is redefining its relationship with FM providers, prioritizing collaboration and strategic alignment above other factors. A majority (78%) of organizations report a strategic partnership with a deep understanding of their core business as the top selection criteria, emphasizing FM’s elevated role as an integrated advisor. Pricing transparency and cost savings remain a crucial consideration, as do communication and service excellence, as well as technology and data-empowered innovation. Ultimately, the success of FM is built on its ability to combine operational excellence with sophisticated industry insights that deliver results aligned to the organizations’ core business objectives.

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.