Category: Blog

Welcome 2025! In the spirit of forecasting (or manifesting) what the new year will bring, the JLL Spark team compiled their predictions on CRE themes for the year ahead. The top trends identified were sustainability, data center growth, a rebound in the CRE landscape, and – last, but not least – AI. Many of our predictions in 2024 came to fruition, such as the fed rate cut, spotlight on sustainability, a push for the return to office, to name a few. Will the same ring true for this year? Only time will tell…

AI may be overhyped at the moment, but we can confidently say that the direction is clear: Demand for AI-driven solutions in real estate is rising. 

According to JLL’s Future of Work 2024 survey, 90.1% of companies plan to run their corporate real estate function with AI and technology supporting human experts. Though understanding of the technology remains low, adoption is gaining momentum, with 61% of companies already piloting different CRE AI use cases.

Commercial real estate investors and occupiers are actively embracing AI, with 90% of companies planning to integrate AI over the next five years to help navigate the complexities of an ever-changing market landscape, according to JLL’s 2024 Future of Work Survey. By harnessing the power of Generative AI, the latest wave of artificial intelligence techniques, these stakeholders can process vast amounts of information quickly, uncovering insights that would be impossible to glean through traditional methods.

At JLL, we strive to be at the forefront of innovation, leveraging technology to deliver superior service and outcomes for our clients. Our AI strategy is central to this commitment, combining enterprise applications, a software platform for developers, and a comprehensive training program to upskill our teams around the world. 

Our previous post on construction technology, aka ConTech, dissected the many challenges faced today by the industry, from labor shortages, to cost over runs and delays. What is the secret sauce to overcome these challenges? The simple answer: coordination…and how to enhance it.

Recent challenges in our industry have only accelerated the need for innovation, particularly in construction technology. With tighter margins, a push for greater efficiency, and an increasing focus on sustainability, we’re witnessing a surge in adoption of new solutions that promise to reshape how we build and renovate.

For the avoidance of doubt, there is a future for work. While this might be bad news for those of us that enjoy our time off, the rest of the picture is decidedly less certain. As the recent JLL Future of Work survey illustrates, the complexities of where and how work will be performed are making life complicated for real estate decision makers around the world.

According to McKinsey, 98% of construction projects experience cost overruns, and the average cost overrun is roughly 28%. Against this backdrop of inefficiency, JLL Spark recently invested in PROBIS, a leading SaaS PropTech startup specializing in financial management for real estate development, aligning with JLL’s digital transformation goals in project management.

JLL Spark Global Ventures recently led a $3.5 million funding round for Ren Systems, reaffirming not only our intent to back visionary founders building world-changing businesses but also our commitment to tech-enabling our core business and transforming our industry.

In the world of commercial real estate (CRE), smart buildings have become essential for enterprises.