The evolution of property management: How technology is reshaping real estate

Property management, the oversight and administration of real estate assets, is undergoing a profound transformation driven by technological advancements. This shift is not only improving operational efficiency but also enhancing the experience for all stakeholders involved in the real estate ecosystem. For context, the global property management market size was valued at $15.10 billion in 2021 and is projected to reach $28.21 billion by 2031. (Allied Market Research, 2022)

The term “property management” carries different meanings across the industry. For Real estate investors, it’s about returns and asset performance. To property owners, it’s about maximizing asset value, attracting the best tenants and ensuring smooth operations. Tenants’ experience of a property manager is key to their comfort and satisfaction within a space. Facility and operations managers are focused on a complex system of maintenance and operational tasks. Technology providers, meanwhile, see property management as a field ripe for innovation and disruption. 

Technological innovations are reshaping property management in numerous ways, including:  

• Smart building technologies including IoT and AI-driven analysis are enabling real-time monitoring, predictive maintenance and enhanced control of building systems.

• Cloud-based property management solutions and building operations maintenance systems are centralizing operations, improving efficiency and streamlining workflows for property managers. 

• Emerging technologies like virtual reality, augmented reality, and AI-powered lease management systems are transforming leasing activities, property tours and inspections. 

These technologies are having a significant and positive impact on operational efficiency, tenant experience, and sustainability efforts. Perhaps most importantly, data-driven decision making has become the norm, with rich analytics informing strategic choices. 

JLL and JLL Spark are at the forefront of this technological revolution. JLL’s acquisition of Building Engines in 2022 and the ongoing support of the Prism product demonstrates JLL’s commitment to cutting-edge property management solutions. Prism is the cornerstone of JLL’s building operations maintenance service and has now been deployed on over 1.2 billion sq ft of JLL-managed properties. JLL’s acquisition of Hank has expanded JLL’s technological capabilities and service offerings in the realm of building operations and maintenance. 

“JLL’s vision is to globalize and technology-enable each of its major business lines including Property Management. By aligning our workforce and implementing a unified technology platform, we can achieve consolidation and standardization. Having a single central technology platform to efficiently perform these services for all customers offers several key advantages such as the ability to provide data-driven insights, find operational efficiencies, and provide customers with innovative leadership,” says Daniel Russo, CEO of JLL Property Management Technology.

JLL Spark has made targeted investments in several innovative companies that complement the core functions of Prism and are frequently utilized by JLL’s clientele. These investments aim to provide comprehensive solutions that address various aspects of property management and tenant experience. Jones is used in conjunction with Prism to facilitate advanced COI (Certificate of Insurance) analysis and tracking. Another notable investment is in HqO, a tenant experience and communications platform that integrates seamlessly with Prism, offering features such as streamlined visitor management, request handling, and facility booking capabilities.  

JLL Spark has also invested in other innovative companies in this space, including: 

• SwiftConnect: enables integrated access control across multiple buildings and various hardware types 

• Safehub: provides building-specific earthquake damage data 

• Re-Leased: a cloud-based, AI-driven leasing and accounting platform 

These strategic investments reflect JLL’s commitment to driving innovation in the real estate industry and providing cutting-edge solutions to meet the evolving needs of property managers and tenants. 

Looking ahead, we can expect to see even more integration of AI and machine learning, increased use of robotics for maintenance tasks, and a growing emphasis on health and wellness technologies in buildings. Additionally, the drive towards sustainability is becoming increasingly paramount, with smart building technologies playing a crucial role in reducing energy consumption and optimizing resource use. 

As property management continues to evolve, staying informed about these technological advancements is crucial for all industry participants. To learn more about JLL Spark’s initiatives in PropTech and how they’re shaping the future of property management, email us at contact.spark@jll.com. 

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