Over 80% of Real Estate Occupiers Increasing Tech Budgets, Says JLL

• Content
• Smart Buildings & Technology
• Over 80% of Real Estate Occupiers Increasing Tech Budgets, Says JLL

26 October 2023

Over 80 per cent of commercial property occupiers are increasing their technology budgets despite a difficult operating environment, according to JLL's 2023 Global Real Estate Technology Survey.

JLL surveyed 1,006 decision-makers, including over 600 corporate real estate leaders at major occupiers and over 400 leaders at real estate investors, landlords and developers. 

Despite economic uncertainties and an increasingly regulatory environment, JLL found that the majority of companies view real estate technology as a “key differentiator” and complementary to their wider objectives of employee wellbeing, staff retention and the drive towards net-zero.

Businesses are therefore willing to pay a premium for tech-enabled spaces. 85 per cent of occupier and investor respondents plan to increase their investments in technology over the next three years and 92 per cent of occupiers believe technology will drive competitive advantage. 

“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.

Barriers to Adopting New Technologies 

40 per cent of respondents consider their existing tech programs to be very successful in meeting their initial objectives, and 80 per cent feel they aren’t extracting enough value from the technology they’re already using.

One respondent commented on barriers to adoption: “Lack of support from upper management has stalled these projects several times now. COVID was an excuse at one point, but that problem has moved on post-COVID.

When asked what technology their company is looking to adopt next, 48 per cent of investors and developers said lease management tools, 47 per cent said consolidated insight dashboards and 45 per cent said energy management. 

Picture: a photograph of a reflection of the sky in the glass of a building. Image Credit: Unsplash

Article written by Ella Tansley | Published 26 October 2023

Share

Related Articles