JLL research finds over 80% of companies increasing CRE tech budgets despite challenges

JLL research reveals 80% of companies are boosting their technology budgets despite challenges, highlighting a resilient commitment to technology investment in the commercial real estate.

JLL research finds over 80% of companies increasing CRE tech budgets despite challenges

Chicago, USA, October 18, 2023 – Global real estate giant JLL released highlights from its 2023 Global Real Estate Technology Survey, offering a glimpse into the transformative power of technology in the industry. This survey, conducted by Meridian West, indicates a notable shift in focus, with over 80% of companies demonstrating an increasing commitment to workplace technology investments, despite a challenging operating environment.

JLL announced the key findings from the report in a press release serving as a prelude to the comprehensive report. Survey findings, indicate a notable shift in industry focus towards technology and sustainability. Key highlights include:

  • 45% of occupiers plan to adopt energy and emissions management technology in the coming year.
  • The adoption rate for data science and modeling tools, essential for analyzing energy consumption, occupancy patterns, and financial expenditures across properties, surged by 14% from 2022 to 2023, reaching a notable 40%.

“Organizations are shifting their tech priorities from cost reduction to strategically improving their business,” remarked Sharad Rastogi, CEO of Work Dynamics Technology. “Occupiers are looking for technology that helps increase revenue, enhance business decision-making and improve their sustainability metrics. JLL offers data-driven insight solutions such as our new decarbonization software solution, Carbon Pathfinder, to help them make informed, strategic decisions.”

The survey highlights artificial intelligence (AI) and generative AI as technologies anticipated to have the most significant impact on the real estate landscape over the next three years, despite limited understanding among respondents. These innovative technologies offer uncharted potential.

Yao Morin, JLL's Chief Technology Officer, emphasized, "Digital transformation in CRE is now advancing so rapidly that decision-makers are relying more on technology experts to understand how certain innovations can have a business impact and provide a good ROI." He went on to highlight JLL's commitment, stating, "JLL not only provides essential technology implementation guidance but also maintains a dedication to innovation. We continuously strive to deliver a best-in-class technology portfolio to complement our expert advice. For instance, JLL GPT, the industry’s pioneering generative AI large language model, empowers our real estate experts to provide faster, more intelligent insights to our clients. Additionally, we offer solutions like Hank, driven by IoT and AI modeling, aimed at reducing energy costs and aligning with our clients' sustainability objectives."

The survey's highlights reveal a shift in occupier tech priorities, extending beyond cost reduction and remote work facilitation to include technologies that add value to overarching business objectives. This evolution encompasses collaboration, optimization, and improved decision-making:

  • A transition is observed from remote working tools to in-office collaboration technology, with adoption rates surging from 40% in 2022 to 50% in 2023, solidifying in-office collaboration technology as a key asset.
  • Health and well-being tech solutions have surged from 25% to a remarkable 48%.
  • Platforms facilitating consolidated insights (47%) and promoting predictive management (43%) are among the top adoption priorities.
  • Immersive workplace technology, including virtual reality and augmented reality, is one of the top five technologies companies intend to adopt next, with a 44% adoption rate.

The JLL 2023 Global Real Estate Technology Survey engaged 1,006 decision-makers, including over 600 corporate real estate (CRE) leaders and more than 400 leaders at real estate investors, landlords, and developers. These participants wield decision-making authority across their organizations and represent various leadership levels, from department heads to the C-suite.

With participants hailing from 10 diverse global markets and representing a broad spectrum of industries, the survey highlights the industry's dynamic transformation. Among occupiers, 50% of the companies employ over 5,000 individuals globally, and over 60% of investor representatives manage real estate assets exceeding $10 billion.

In an industry undergoing profound changes, the survey highlights how technology, sustainability, and AI are becoming central pillars for future success. Industry players are turning to innovators like JLL for guidance and cutting-edge solutions that are propelling the industry toward a tech-savvy, sustainable, and AI-empowered future filled with untapped potential.