outsourcing real estate management on the rise in a multi billion dollar industry
Image: Canva.
  • A growing number of businesses are outsourcing real estate management
  • IFM was being used in business with and without real estate at their core operations
  • Benefits included positive impacts to sustainability goals and employee experience

Increasing numbers of businesses are outsourcing non-core operations, optimising their real estate management through services such as integrated facilities management (IFM), according to the latest insights from JLL.

As the trend gains traction, JLL noted that real estate is “… typically the second highest expense for organisations and takes up a disproportionate volume of resources.

“The key motivators of outsourcing are typically cost, sustainability, and compliance. IFM provides a single end-to-end solution with a goal to drive better outcomes for businesses through consistency, processes, and innovation,” said Nick Moore, from JLL’s Work Dynamics business.

“IFM is not a one-size-fits-all approach, but post-pandemic, just about all businesses are adopting new ways of operating, and many are embracing the benefits of IFM.”

The real estate outsourcing sector has grown across the pandemic, JLL cited Research and Markets data that showed the IFM market recorded a compound annual growth rate (CAGR) of 7.2% since 2021. Sector growth is projected to reach US$119.55 billion by 2026, an annual growth rate of 6.15%.

Core or non-core, IFM the preferred choice

JLL’s insights noted that outsourcing enabled companies, that did not have real estate as a core operation, to focus more on what ultimately generates their revenue.

For those businesses where real estate was a core part of business operations or a real estate department existed, IFM was still leveraged by many and said to “… [bolster] capabilities and [improve] operational efficiencies.”

Within the context of real estate being a priority for improved sustainability and employee experience, combining IFM with in-house expertise:

“… provides the best outcomes for the company, allowing them to develop an effective portfolio strategy, deliver on lease obligations, move closer to their net zero objectives, and optimise data with a single integrated technology solution.”


The built environment, sometimes called real estate or buildings, is responsible for some 39% of global carbon emissions, according to the World Green Building Council. The organisation said the majority (28%) of that comes from building operations such as heating and cooling, with the remainder from materials and construction.

“IFM can help support businesses on their sustainability journey by creating an action plan and then delivering on operational emissions reductions,” added Moore.

Curating the employee experience

As the flight to quality in the office sector continues, it is clear that creating a high-quality employee experience is a priority for a growing number of businesses.

“IFM is about understanding the functionality a business and its employees’ needs, then designing a workplace that supports that. They also benefit from the external access IFM provides through best-in-class digital strategies and solutions without the start-up investment,” said Moore.

JLL also noted that: “Australia is one of the most mature outsourced markets in the Asia Pacific region, with many businesses now into their second, third or even fourth generation of outsourcing.”

You May Also Like

Australia’s return to office continues to shine as the US stagnates at 50 per cent of pre-Covid levels

The Australian office market records improved office occupancy while the United States lags behind on the return to office.

Work from home is here to stay, and Australia’s secondary offices are at a turning point

Secondary office assets face challenges with poor uptake and declining values, especially in B and C-grade properties.

Why Australia needs more industrial assets to boost productivity and growth

A new report reveals that Australia’s industrial assets handle over $1.2 trillion worth of products annually.

Sydney’s retail sector continues to improve, with one area boasting zero vacancy

Vacancy rates for Sydney’s prime retail core have dropped to 8.3%, with the one area recording vacancy rates of zero.