Latest JLL research finds over 80% of companies are
increasing technology budgets despite a challenging operating
environment
CHICAGO, Oct. 18,
2023 /PRNewswire/ -- Commercial real estate occupiers
are willing to put their money where the tech is, according to new
research data from JLL's 2023 Global Real Estate Technology Survey
released today. Ninety-one percent of occupier respondents are
willing to pay a premium for tech-enabled space as they look to
technology for strategic value and increased revenue. In fact, real
estate tech budgets are set to grow faster than investments
in headcount, footprint and operating budgets.
JLL's research finds that sustainability tools will account for
the largest share of increases in technology budgets, underscoring
the business and regulatory pressures driving the race to net zero.
Respondents expect clean energy solutions to have the greatest
impact on real estate over the next three years. For
example:
- Forty-five percent of occupiers plan to adopt energy/emissions
management tech in the coming year.
- The adoption rate for data science and modeling tools – used to
analyze energy use, occupancy and financial costs across buildings
and locations – rose 14% from 2022-2023 (up from 26% to 40%).
"Organizations are shifting their tech priorities from cost
reduction to strategically improving their business," said
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."
Following sustainability tech, respondents pointed to artificial
intelligence (AI) and generative AI as the technologies expected to
have the greatest impact on real estate over the next three years.
Surprisingly, most conceded limited understanding of AI despite
ranking it highly.
"Digital transformation in CRE is now advancing so rapidly that
decision-makers are leaning more on technology experts to
understand how certain innovations can have a business impact and
provide good ROI," said JLL CTO Yao
Morin. "JLL not only provides critical technology
implementation counsel, but we're also continually innovating so
that we can deliver a best-in-breed technology portfolio to
accompany our expert advice. Just one example is JLL GPT – the
industry's first generative AI large language model – developed so
our real estate experts can deliver faster, smarter insights to our
clients. We also offer solutions like Hank, powered by IoT and AI
modeling, to reduce energy costs to meet client sustainability
goals."
Additionally, JLL's research found occupier tech priorities are
expanding beyond cost reduction and facilitating remote work to
include technologies that drive value to their overarching business
goals through collaboration, optimizing and enhanced
decision-making.
According to the survey:
- The focus is shifting from remote working tools to in-office
collaboration technology, with adoption rates jumping from 40% to
50% from 2022 to 2023. In fact, the top tech already in place is
in-office collaboration technology.
- Health and wellbeing tech solutions rose from 25% to 48%.
- Platforms to enable consolidated insights (47%) and drive
predictive management (43%) are among the top adoption
priorities.
- Immersive workplace technology, such as virtual reality and
augmented reality, is one of the top five technologies companies
intend to adopt next (44%).
The JLL 2023 Global Real Estate Technology Survey was conducted
by Meridian West during May and June
2023. The 1,006 decision-makers surveyed included over 600
CRE (corporate real estate) leaders at major occupiers and over 400
leaders at real estate investors, landlords and developers. All
respondents have responsibility for making or influencing decisions
regarding real estate within their organization and senior
leadership including department heads, executive management and
C-suite level roles. Research respondents are situated in 10
markets globally: Australia,
Canada, China, France, Germany, India, Japan,
Singapore, the U.K. and the United
States.
Among occupiers, 50% of companies employ more than 5,000 people
globally. The respondents represent a range of industry sectors
including technology, manufacturing, finance, professional
services, retail, hospitality and government. Investor respondents
are from a variety of operating models including investment
managers and private equity, banks, REITs, real estate operating
companies and developers. Over 60% of investors represented hold
real estate assets under management in excess of $10 billion.
About JLL
For over 200 years, JLL (NYSE: JLL), a
leading global commercial real estate and investment management
company, has helped clients buy, build, occupy, manage and invest
in a variety of commercial, industrial, hotel, residential and
retail properties. A Fortune 500® company with
annual revenue of $20.9 billion and
operations in over 80 countries around the world, our more than
103,000 employees bring the power of a global platform combined
with local expertise. Driven by our purpose to shape the future of
real estate for a better world, we help our clients, people and
communities SEE A BRIGHTER WAYSM. JLL is the brand name,
and a registered trademark, of Jones Lang LaSalle Incorporated. For
further information, visit jll.com.
Contact: Allison Heraty
Phone: +1 312 228 3128
Email: allison.heraty@jll.com
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SOURCE JLL