Facilities Management Trends 2025
Visit CBRE on stand B3, C3, C4 at the show. Additionally, listen to talks from CBRE’s Laura Toumazi (7th at 10:30) and Dan Andrews (8th at 10:30).
Introduction
The facilities management industry has demonstrated remarkable resilience in recent years, adapting to economic shifts, hybrid work models, and the pandemic’s impact. FM services often represent significant expenditure, highlighting the constant demand for value-driven workplace solutions. Outsourcing FM remains a key strategy for future-proofing commercial estates, leveraging specialised expertise.
This report explores the major drivers reshaping the FM industry, offering insights for organisations seeking to thrive in this evolving landscape. It focuses on three key areas: Digital, Physical, and Human (Workplace PHD).
Economic stability
CBRE anticipates economic stability, with inflation near target levels and potential base rate cuts. This will likely result in a modest market growth of 3.2% in the UK’s outsourced FM market, which is currently worth over £35 billion according to Frost & Sullivan.
The Top Facilities Management Trends
Digital
Mature organisations are developing holistic digital strategies for facilities management data to support their goals. By connecting facilities management, real estate and project management data, businesses can invest more wisely and derive greater value from their workplace technology investments.
1) AI-optimised facilities management:
Artificial intelligence (AI) tools have exploded over the past 12 months, with businesses in every sector exploring how they can drive efficiencies and change. The integration of AI and automation into facilities management services is accelerating and we are already seeing the potential it has to transform operational excellence, user experience, skills and talent, innovation, data and sustainability.
AI is rapidly transforming facilities management, offering significant improvements in operational efficiency, user experience, and sustainability. Over the next year, we’ll see further impact, including streamlined workflows, automated tasks, and optimised building systems.
Agile companies are leading the way, with industry-specific AI variations emerging. Demand is increasing, but the human element remains crucial. Organisations must cultivate a culture that values critical thinking and empathy alongside technology.
Expect AI to enhance, not replace, human decision-making in the near future. The “human-in-the-loop” approach, combining AI with human input, is key for accuracy and long-term reliability. Data quality will be critical for successful AI implementation, driving advancements in machine learning and expanding AI’s applications within facilities management.
2) Connected FM technologies:
Facilities Management will continue to focus on implementing and scaling key technologies to support core business goals. Smart FM solutions, including IoT sensors, BMS alarm analytics, HVAC optimisation, AI-powered BIM and predictive maintenance, will drive operational efficiencies and sustainability efforts, leading to tangible cost savings.
The industry is evolving towards flexible, on-demand service models, with technology as the key enabler. Remote monitoring, IoT, and predictive maintenance will optimise resource allocation and facilitate pay-as-you-go models.
“Living intelligence,” integrating AI with advanced sensors, will be a key trend. This continuous data analysis will boost workflow efficiency, reduce costs, and improve sustainability. Expect increased PropTech M&A activity, driven by reduced inflation and investment, aiding data unification and unlocking AI’s full potential.
3) The data and insight economy:
Data is an increasingly valuable business asset, and FM data is no different. In a data-driven world, facilities managers derive meaningful insight from large volumes of information to support organisations in making strategic decisions. Improving quality in proprietary facilities management data will be a central focus, with the aim of supporting decision-making through enhanced accuracy and usability, thus creating meaningful pathways for successful action and outcomes.
Data protection and cybersecurity remain top priorities as systems become increasingly connected. With enterprise data projected to grow significantly, enhanced security controls are essential.
This year, companies will start feeling the effects of the environmental impact of data storage as a Scope 3 emission, particularly as AI becomes more prominent. We will begin to see whether AI will enable the net zero transition or derail it
Physical
4) Human-centred workplace strategy:
The narrative around workplace strategy is expanding far beyond hybrid working and the common thread will be the need to reimagine our offices to meet the needs of workforces in 2025 and beyond. The focus is on creating a human-centred workplace experience, supporting the “untethered workforce” with flexible policies and environments. This involves measuring and strategically leveraging the workplace to gain a competitive advantage.
Inclusion remains paramount, with spaces designed to accommodate diverse needs, including accessibility and neurodiversity. Sustainability is also crucial, with a focus on renewable energy, energy-efficient technology, and sustainable building certifications like NABERS or BREEAM.
Friday occupancy remains a challenge, prompting companies to explore strategies to boost attendance or repurpose office space. Facilities management will need to offer flexible, demand-led services. While the four-day workweek and the metaverse are emerging discussions, the focus will be on addressing burnout and digital overload.
5) Simplification of ESG:
After a year of newsworthy climate impacts there will be a sharper focus for Environmental, Social and Governance (ESG), driven by the urgency of net-zero targets and heightened climate impacts. The focus will shift from initiatives to data, with governance and climate risk taking precedence. Organisations are moving from target setting to concrete action, demanding data integrity.
Facilities managers will play a critical role, facilitating advanced ESG benchmarking and supporting budget allocation for decarbonisation projects. Expect a stronger emphasis on the “S” of ESG, going beyond healthy workplaces. FM can enhance local impact by sourcing from ethical suppliers, conducting community needs assessments, and designing effective social value strategies.
6) Cost savings:
Cost and value for money will remain the primary drivers of FM purchasing decisions. Facilities managers are well-positioned to deliver savings, even on mature contracts.
Innovation and cost savings will go hand in hand, with organisations that invest in digitisation seeing the greatest benefits. Cost will also drive ESG initiatives; demonstrating the financial benefits of ESG will help organisations reach net-zero targets faster.
A challenge to the ability of facilities managers to support cost savings is the National Insurance increase, as outlined in the current Government’s budget scheduled to take effect in April 2025. As a result, facilities management providers will seek innovative strategies to mitigate its impact on employment opportunities and service quality.
Key Decision Drivers in Purchasing FM Services (Survey Results):
- Cost and Value for Money (77%)
- ESG and Sustainability (27%)
- Service Quality, Innovation, Partnership, Workplace Experience, Technology, Flexibility, and Data/Insight
Human
7) The next generation workforce:
The arrival of Gen Z is reshaping workplace expectations, requiring companies to navigate a multigenerational workforce. Workplace experience and design are key to fostering collaboration across generations.
Gen Z expects personalisation and flexibility, challenging traditional office attendance models. An enforced five-day office attendance is generally seen as less attractive by younger generations, so companies must decide their stance on this as they build their future workforce
Wrapped up in this trend is the growing need to digitally reskill the workforce, address the skills gap and continually enhance the capabilities of facilities managers to meet the needs of new buildings. AI is changing job types, necessitating more digitally literate facilities management professionals. The Government’s newly formed skills board recognises the fractured skills landscape and could prove useful in driving next generation talent into engineering and facilities management careers across the whole of the UK.
8) Rethinking workplace metrics:
We will continue to see an evolution of traditional measures of workplace performance. We will see a move from efficiency measures, like desk density and sharing ratio, to effectiveness measures such as utilisation and employee sentiment or satisfaction. Total cost of occupancy will become a common and crucial measure of estate performance and a valuable data asset that facilities management can deliver to their clients.
Expect improved data analytics and connectivity, linking FM performance to workforce and business outcomes. For example, correlating lift uptime with footfall or retail sales.
New metrics that measure employee experience, organisational dynamics and ESG are also gaining prominence and will become more common.
9) Supply chain designed for strategic impact:
Facilities Management supply chains must flex and adapt to meet evolving organisational needs. This includes driving technological innovation, service efficiencies, and aligning with ESG goals, particularly reducing Scope 3 emissions. Differentiated partnerships will remain crucial for delivering diverse spend and fostering innovation.
In today’s fast-paced marketplace, organisations need a facilities team that that fosters a culture of proactively identifying advantage – and evolving solutions to keep at them at the cutting edge. Whether organisations are targeting efficiencies, cost savings, smart solutions or other innovations, facilities supply chains will be designed to deliver strategic impact.
The Final Word
The current FM industry is poised for success, driven by economic recovery, data-driven insights, and technological advancements. The industry must remain resilient and flexible. Organisations will increasingly seek FM providers with deep industry knowledge and a commitment to partnership. Success will rely on delivering exceptional value through big data, human-centric design, and digital transformation.
