The Role of Real Estate in Financial Services: Prediction Edition
The global financial sector is anticipated to grow, not just in 2025 but through 2030. In addition, banks and other institutions plan to boost their workforces by looking for talent with skills in data analytics, AI, cybersecurity, and software engineering. To attract those employees, these companies will upgrade their office designs to improve the workplace experience.
This is one development found in JLL’s just-released “Financial Services Real Estate Trends to Watch” for 2025. Other things to look for include the following.
The Impact of AI and Technology
- According to research, 65% of financial firms have a strategy for AI integration; these companies are developing AI use cases for real estate management. Additionally:
- 67% plan to increase CRE technology spending by 2030
- 62% anticipate their office spaces will be tech-enabled by 2030
The report said that areas likely to see automation include daily occupancy planning, workplace design and fit-out, project design and construction workplace strategy and lease administration.
Changing Demographics and Wealth Management
The report estimates that by 2045, over $84 billion in assets could be transferred from baby boomers to millennials. This means that wealth management firms need to “reimagine spaces for younger clientele. “
Additionally, wealth management centers are blending digital and in-person experiences and expanding into urban cores and suburban markets. The trend also demonstrates ground-floor stand-alone spaces and co-locations with retail branches.
Greater Alignment with Business Demands
“The role of CRE leaders in financial services is evolving from operational tasks to strategic business partnering,” the report explained. As a result, commercial real estate strategies should align with business objectives, including company growth plans, talent strategies and client needs.
Additionally, CRE functions are shifting reporting structures closer to that of operations and human resources. “By successfully navigating challenges like talent shortages and technology implementation, CRE leaders can position themselves as key drivers of innovation and growth,” according to the report.
A Focus on Premium Assets
Anticipated talent growth will likely mean higher portfolio utilization by 203. This will increase the focus on design and employee experience and the demand for high-quality assets in key locations.
However, “firms are encountering difficulties in finding suitable space in gateway markets due to limited supply,” the report said. Because of this, expansions might take place in non-traditional financial hubs.
