Facilities Management Leaders Cite Budget Constraints as Primary Concern: JLL Study

The facilities management (FM) industry continues to expand, with total global spend expected to exceed the $3 trillion mark in 2026, a figure comparable to the annual GDP of France, the world’s seventh largest economy. However, according to JLL’s Global State of Facilities Management Report 2025, 84% of FM leaders cite budget constraints and escalating operational costs as their primary concern.

“Facilities management should no longer be viewed as a mere cost center, but a strategic business enabler that fortifies resilience, fuels productivity and ultimately creates a competitive advantage,” says Paul Morgan, global COO of real estate management services at JLL. “In an environment marked by volatility, uncertainty and ambiguity, the need for more intelligent, AI powered by data-driven facilities management has never been more essential.”

Key takeaways:

·        58% of organizations are consolidating contracts and suppliers to leverage volume-buying power, while 52% prioritize providers with greater self-delivery capabilities and 37% actively partner with service providers to identify joint cost-saving opportunities.

·        Operational reliability and resilience ties with occupant wellbeing and workplace safety as the second highest FM priority for organizations.

·        While 70% of organizations express confidence in their FM safety protocols, 30% report low-to-moderate confidence, highlighting critical vulnerabilities. The top safety challenges include developing a safety-first culture; training and tech enablement; regulatory compliance and safety standards; and physical workplace hazards and incidents.

·        Despite cost pressures, 32% of organizations plan to increase their FM software investment in the coming year. Work order management leads FM software investment priorities at 57%, followed by asset lifecycle insights and decision-making for capital asset replacement.

·        The FM industry has increased AI adoption, with 28% of organizations actively embedding AI solutions in their FM operations, representing a shift from experimental pilots to scaled deployment.

·        39% of facilities managers in the United States are above the age of 55, significantly higher than the 28% in this age range across all occupations.

“Forward-thinking facilities management builds organizational resilience through proactive risk management strategies that anticipate and prepare for a wide range of interconnected vulnerabilities,” says Wei Xie, global head of research and strategy, workplace management at JLL. “From workforce contingency planning to energy sourcing to data governance and protection in the age of AI, effective risk management requires balancing immediate operational needs with long-term strategic objectives that align with the organization’s growth roadmap.”