The global financial industry is expected to experience significant growth not only in 2025, but also throughout the following decade until 2030. As part of this growth, banks and other institutions are actively seeking employees with skills in data analytics, AI, cybersecurity and software engineering. To attract top talent with these abilities, companies are upgrading their office designs to enhance the overall workplace experience.
This trend is highlighted in JLL’s recently released “Financial Services Real Estate Trends to Watch” for 2025. Other developments outlined in the report include:
– The Impact of AI and Technology: Research shows that 65% of financial firms have a strategy for integrating AI into their operations. These companies are exploring various use cases for implementing AI technology within real estate management.
– By 2030:
67% plan on increasing spending on CRE technology
62% anticipate having tech-enabled office spaces
According to the report, 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 & Wealth Management: It is estimated that by 2045 over $84 billion worth of assets will be transferred from baby boomers to millennials. This means wealth management firms must adapt their spaces accordingly as they cater towards a younger clientele.
Additionally:
Wealth management centers are embracing digital experiences while still maintaining an emphasis on face-to-face interactions.
They’re expanding into urban cores as well as suburban markets.
There’s also been an increase in ground-floor stand-alone locations or co-location with retail branches.
– Greater Alignment With Business Demands: Accordingtothe report,”The roleofCREleadersinfinancialservicesis evolvingfromoperationaltaskstos trategicbusinesspartnering.”Asaresult,it’simportantforcommercialrealestatestrategies tob ealignedwithbusinessobjectives,suchascompanygrowthplans,talentstrategiesandclient needs.Additionally,CREfunctionsarebeingrestructuredtocloselymirrorthatofoperations andhumanresources.Byeffectivelymanagingchallengesliketalentshortagesandimplementing technology,CLEleaderscanpositionthemselvesaskeydriversofinnovationandgrowth.
– A Focus on Premium Assets: With the expected growth in talent, there will be a higher demand for quality office spaces in prime locations by 2030. However, companies are facing challenges finding suitable space in major markets due to limited supply. As a result, expansions may occur in non-traditional financial hubs.
In conclusion,the role of real estate within the financial services industry is predicted to undergo significant changes over the next decade. Companies are investing more resources into upgrading their offices and implementing new technologies as they adapt to changing demographics and align with business demands. This presents opportunities for CRE leaders to drive innovation and contribute towards overall company growth.
