**Commercial Real Estate’s Role in Financial Firms’ Mergers & Acquisitions**
*By Connect CRE Staff*
*Erin Haglund*
In today’s fast-changing financial landscape, firms face mounting regulatory shifts, fierce competition, and sweeping digital transformations. Amid these pressures, financial services companies are turning toward mergers and acquisitions (M&A) not only to fuel growth and technological advancement but also to diversify their operations.
However, as highlighted in a recent JLL report, *Navigating M&A as a Corporate Real Estate Leader*, the success of M&A goes far beyond aligning operations and personnel. A firm’s real estate assets and portfolios play a critical role, and corporate real estate (CRE) leaders must be integrated into the initial planning stages.
“Treating corporate real estate as a strategic lever rather than a downstream function better positions organizations to unlock value, retain talent, and execute on growth,” said Erin Haglund, Managing Director for Financial Services at JLL. “It also allows for a seamless transition for employees experiencing the transformation and customers engaging with the new brand.”
**An Evolving Real Estate Role**
The report notes a sharp rebound in global M&A activity within the financial services sector in 2024. Looking toward 2030, entering new markets and pursuing mergers are among the top strategic priorities for many firms.
Yet, the M&A landscape continues to be highly regionalized. According to the report, real estate decisions vary significantly based on regional market maturity, regulatory considerations, and subsector trends that influence deal activity.
Commercial real estate itself remains inherently regionalized. What’s more, the role of CRE in M&A has undergone a transformation.
“Real estate has historically been seen as an enterprise and operational cost center,” said Haglund. “In recent years, however, this view has changed. Real estate is now recognized as a strategic partner that aligns closely with business goals and contributes meaningfully to their achievement.”
For this reason, Haglund believes bringing CRE leaders into the M&A due diligence process is essential for identifying opportunities that might otherwise be overlooked. These leaders bring deep expertise in areas such as asset and liability management, portfolio optimization, market entry strategies, reinvestment planning, and post-merger cost efficiencies.
Given the localized nature of many M&A deals, the value of local real estate knowledge only increases.
**The Value of CRE Integration**
One of the primary objectives of any merger or acquisition is achieving scale and improving operational efficiency. Haglund emphasized that real estate — often a company’s second-largest expense — can’t be ignored in the equation.
“Real estate plays a pivotal role in translating M&A ambition into operational reality. A company’s facility portfolio is the physical expression of its culture and customer-facing brand,” she said.
Beyond operations, there’s the critical factor of culture. “The workplace is the physical manifestation of a company’s culture and brand. It’s where employees spend most of their daily time,” Haglund explained. “If real estate isn’t accounted for, it’s harder to integrate company cultures—leading to silos and reduced cohesion post-merger.”
**The Risk of Overlooking Real Estate**
Failing to account for real estate in M&A efforts introduces unmanaged risk. Overlapping facilities such as duplicated office spaces or redundant branch networks are common, often the result of legacy growth patterns.
Neglecting CRE considerations can lead to inefficiencies and increased risk exposure. Haglund noted that organizations must evaluate property-level liabilities, lease obligations, and the overall condition of assets to understand and mitigate post-merger risks.
But the goal isn’t simply cost-cutting or eliminating underused properties. CRE can also present powerful investment opportunities. “These opportunities allow companies to reshape their footprint to reflect new business models, talent strategies, and broader customer engagement,” Haglund stated. “A high-performing, well-aligned footprint provides the foundation for cultural unity, operational efficiency, and scalable growth.”
**Key Takeaways**
To ensure the success of a merger or acquisition, real estate stakeholders from both organizations should be involved from the earliest phases. Ideally, Haglund recommends that CRE teams be brought in even before beginning due diligence.
“The most successful transitions are those where real estate teams act early, collaborate cross-functionally, and approach portfolio decisions with a blend of data and future-focused vision,” she said.
As financial firms navigate increasingly complex and ambitious M&A strategies, it is clear that commercial real estate professionals must move from the sidelines to the strategy table, shaping the future of integrated, high-impact organizations.
