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Report: 80% of Companies are Increasing Tech Budgets Despite Challenging Operating Environments
According to data from JLL’s first Global Real Estate Technology Survey, commercial real estate occupiers are investing more in technology these days. According to responses from 1,000 participants:
- 91% of occupiers are willing to pay a premium for tech-enabled space
- 92% of occupiers believe technology will drive competitive advantage
- 85% of companies said they plan to increase their tech budget in the face of a challenging operating environment
- AI is viewed as one of the largest game-changers for the CRE industry over the next three years
- Sustainability tech is anticipated to account for the largest share of spending
Under the “sustainability” category, 45% of those surveyed said they plan to adopt energy/emissions management technology in the coming year. In contrast, the adoption rate for tools used to analyze energy use, occupancy and financial costs across buildings and locations increased from 26% to 40% from 2022 to 2023.
The report also unveiled three important imperatives to help drive value with technology:
1. Shaping an actionable technology strategy
2. Building a resilient operating model
3. Driving new ways of working
JLL’s research also noted that tech priorities are moving beyond cost reduction and remote work facilitation to include technologies that drive value to specific business goals. From 2022 to 2023, office collaboration technology adoption rates increased from 40% to 50%. “In fact, the top tech already in place is in-office collaboration technology,” noted a press release announcing the survey results.
Other results from the survey noted that:
- Health and wellbeing technology solutions increased from 25% to 48%
- Platforms to enable consolidated insights and drive predictive management are among the top adoption priorities
- Immersive workplace technology (virtual reality and augmented reality) is one of the top five technologies companies intend to adopt
Yet companies continue to struggle when it comes to achieving CRE technology objectives. Fewer than 40% of those surveyed felt their existing technology programs were successful, while 80% believe they aren’t extracting enough value from the technology already in use.
- ◦People
