By Mackenna Moralez, Associate Editor

Facility managers are cautiously approaching the new year as 2025 starts to wind down. The industry is booming, with global spend expected to reach $3 trillion by 2026. However, many facility managers cite budget constraints and the rise in operating costs as major concerns in the work.   

According to JLL’s Global State of Facilities Management Report 2025, economic uncertainty has amplified cost optimization, with leaders address the issue by outsourcing and supply chain strategies rather than utilizing cost-cutting methods. The report found that 58 percent of companies are consolidating contracts and suppliers to leverage volume buying power, while 52 percent have prioritized providers with greater self-delivery capabilities. Meanwhile, only 37 percent of respondents said that they actively partner with service providers to identify joint cost-saving opportunities.  

Resilience and occupant wellbeing and workplace safety are among the top concerns for facility managers. According to the report, there is an 84 percent correlation between positive workplace experiences and favorable attitudes toward office attendance. It is up to FMS to adopt a hospitality mindset. Enhancing the user experience delivers safety, convenience and wellness benefits, which elevates the company’s value. 

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However, confidence in safety protocols are limited. According to the report, only 70 percent of respondents said that they are confident in their current protocols while 30 percent reported low to moderate confidence. Safety challenges include developing a safety-first culture, training and tech enablement, regulatory compliance and safety standards, and physical workplace hazards and incidents.  

Thirty-two percent of organizations plan to increase their FM software investment in the coming year, the report found. Immediate operational returns and work order management leads the list of priorities at 57 percent, with asset lifecycle insights and decision-making for capital asset replacement. Still, integration remains a challenge with 54 percent of respondents citing compatibility issues with legacy infrastructure and cost constraints as top barriers, while 41 percent reported issues with data quality and security.  

Despite this, this industry has increased its adoption of AI by 28 percent. According to the report, FM-specific AI applications deliver measurable operational benefits, with asset lifecycle solution and automated record keeping among the top functions.  

Mackenna Moralez is the associate editor of the facilities market and the host of Facilities in Focus podcast.