
With nearly 20 years in the real estate and facilities management industry, I've seen firsthand how quickly the landscape changes. However, what I see unfolding now feels different. There is a fundamental shift affecting how properties are designed and managed, as well as how occupants interact with and experience them.
Sustainability, smart technologies, and data-driven decisions are no longer future concepts to be discussed—they’re here and ready to be implemented. just because these technologies and trends are available, doesn’t mean every organization is ready to tackle them.
In this post, I’ll share some key trends reshaping real estate and facility management. But more importantly, I’ll offer practical advice to help you get a head start for the year ahead.
TL; DR
Key Trends:
1. Flexible workspaces
2. Rising Costs
3. Digitization
4. Artificial Intelligence (AI)
5. Sustainability
Actionable RE & FM Tips:
1. Assess where you stand
2. Involve all key stakeholders
3. Build a strong data foundation for AI
4. Prioritize ESG reporting & compliance
1. Flexible Workspaces: Transforming Offices for the Hybrid Workforce
In the last 5 years, hybrid work has become the norm in many industries. Companies have continued to invest in flexible workspaces to support both remote and in-office employees. Features like hot-desking, coworking lounges, and digital conferencing systems are becoming essential for fostering collaboration, workplace engagement, and improving productivity.
This has created a growing need for mobile workplace solutions that empower tenants and building users to seamlessly navigate their hybrid working routines—whether it’s booking desks, accessing building services, or connecting with colleagues on the go.
2. Navigating Rising Costs in an Uncertain Market
Don’t forget that the real estate market can also experience significant volatility due to geopolitical instability and supply chain disruptions. We’ve already seen a lot of the lingering effects of the COVID-19 pandemic. These factors have slowed recovery in some regions, with fluctuating demand for office space, shifting work patterns, and unpredictable energy prices.
Even as inflation is projected to ease by late 2025, utility bills and rental costs remain significantly higher than pre-pandemic levels. In the U.S., office rents are rising again as more companies bring back regular office attendance, boosting demand. For businesses, these trends mean higher costs and tighter margins.
3. Digitization: Making Buildings Smarter and More Efficient
Many concepts and practices around the Internet of Things (IoT) have helped us collect and manage so much data that we’ve been able to transform buildings into smart ecosystems. For example, the use of connected devices enables benefits, such as real-time monitoring, energy optimization, and personalized tenant experiences.
As the need for managing diverse property portfolios increases, Verdantix has recognized that organizations will need a software solution to help them not only connect building data, but also contextualize it, enabling more informed decision-making.
Therefore, Verdantix predicts a significant shift in the need for Integrated Workplace Management Systems (IWMS) into an evolved version they’ve termed: Connected Portfolio Intelligence Platforms (CPIP).
4. Artificial Intelligence (AI): Data-Driven Decision-Making for Smarter Operations
AI is also reshaping real estate, from predictive maintenance to personal workplace services assistants. McKinsey projects that Generative AI alone could contribute $180 billion to the industry by 2032, transforming operations and tenant engagement alike.
We’re already seeing the future of facility maintenance through AI-driven maintenance activities, that help extend equipment lifecycles and reduce costs by addressing issues before they occur. For instance, optimizing HVAC systems based on occupancy minimizes energy waste, while predictive analytics streamline routine tasks and save staff time.
The rise of digital twins - virtual models of buildings - offers another transformative opportunity, enabling real-time simulations to optimize energy use and reduce carbon footprints.
5. Sustainability: A Shifting Regulatory Landscape
The ESG and sustainability landscape in the United States is evolving, and investors are increasingly recognizing the need to prepare for ESG reporting while implementing strategies to measure and reduce their carbon footprints.
In New York City, for example, only 4% of top-quality office buildings currently comply with Local Law 97, which imposes strict emissions limits on large buildings starting in 2024, according to real estate and investment firm JLL. With more than 30 other U.S. cities planning similar regulations, property owners and developers face growing pressure to meet these emerging standards.
Beyond regulations, tenant preferences are accelerating the demand for greener, more energy-efficient buildings.
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Actionable RE & FM Tips to Start Your Year Strong
To help you act now on all these trends, I’ve put together some tips to ensure your organization is ready for the changes ahead and positioned for success in 2025.
1. Assess Where You Stand
Use the start of the year to check in with your stakeholders and evaluate your current real estate and facility management strategy. You can find several quick wins if you take the time to reassess your operational processes, departmental collaborations, sustainability goals, and technology landscape.
Need a starting point? To help you align with your organization on top priorities, we’ve created some checklists and models such as our Maintenance Maturity Matrix Model, which you can find in our E-Book: 'The Future of Asset & Maintenance Management', as well as an ESG Readiness Checklist, available in our Report: 'ESG by the Numbers: Key Findings & Resources to Help Strengthen Your ESG Strategy'.
2. Involve All Key Stakeholders
Organizations can no longer afford to take a siloed approach to real estate and facilities management. It’s critical to involve key stakeholders like IT and Finance in your discussions. Understand their pain points, such as the need for standardized reporting, a robust IT infrastructure, and cybersecurity requirements and consider how your real estate data can be integrated with core business operations and your ERP system.
With solutions like Planon Real Estate for SAP S/4HANA®, you can streamline processes, improve cost transparency, and make more informed decisions, while leveraging seamless integration between all departments involved in management, maintenance, and support of real estate facilities.
3. Build a Strong Data Foundation for AI
AI is a powerful tool, but it only works when backed by solid, accurate data. Before diving into AI, prioritize building a strong data foundation. Quality data is essential for leveraging AI effectively. Without it, you risk 'garbage in, garbage out'—resulting in inaccurate or misleading insights.
Start by organizing your data with an IWMS so that AI tools can work for you, providing actionable insights to improve operations and enhance tenant satisfaction.
4. Prioritize ESG Reporting and Compliance
Sustainability and ESG compliance have become essential—not just to meet regulatory requirements, but to stay competitive. Often, the nature of improving your real estate and facility management processes is already a sustainable initiative within itself. By sharing the right information and collaborating with the right departments, there is a lot to be gained by aligning your building operation strategy with your organization’s overall sustainability goals.
While navigating ESG compliance may feel overwhelming, there are industry experts available to help you make the right moves for your organization. For ESG, one size does not fit all, but there are many best practices emerging, and with over 40 years of international experience, we’re here to guide you through the process.
Wrapping Up
The trends shaping the real estate and facilities management sectors in 2025 present both challenges and exciting opportunities. By taking action now — prioritizing ESG compliance, assessing your current strategy, ensuring a solid data foundation and involving all key stakeholders — you’ll be in a strong position to succeed.
Want to explore these trends in more detail? Download our free e-book, 8 Trends That Will Shape Real Estate and Facility Management by 2027 and discover how you can stay ahead in this rapidly changing industry. And if you’d like to discuss your unique challenges, don’t hesitate to reach out to our team of experts — we’re here to help!