Facility management trends: what to expect in 2025 and beyond

Facility management is no longer viewed as a quiet back-office function. It sits at the center of how organizations shape workplace strategy, meet employee expectations and manage long-term costs. With hybrid work now a permanent fixture and sustainability mandates accelerating, facility management trends are shaping the way businesses approach real estate, technology and workplace culture. Looking ahead to 2026 and beyond, the discipline is positioned as both a driver of efficiency and a creator of people-first workplaces.

The evolving role of facility management

The scope of facility management has shifted dramatically over the past decade. Once defined by maintenance schedules and equipment oversight, today’s role has expanded into a strategic enabler of business goals.

From cost center to value driver

Facilities teams once focused on keeping buildings safe and operational. Now, they are recognized as drivers of value across multiple dimensions. Data from Facilities Dive shows that organizations investing in smart building systems report efficiency gains of up to 30% in energy use. At the same time, employees expect workplaces that support their productivity, health and work-life balance. Facility leaders are uniquely positioned to bridge these needs — improving operational efficiency while enhancing the employee experience.

Integration with workplace strategy

The most progressive organizations now integrate facilities management and hybrid working policies with HR, IT and corporate strategy. Facilities are not simply spaces to occupy, but ecosystems that influence performance, culture and engagement. By aligning space use, technology adoption and employee services, facility leaders ensure the workplace is cost-effective for the employer, and attractive to both the employee and new talent.

Key facility management trends in 2025

Several trends are reshaping the industry, driven by technology, sustainability and a heightened focus on people.

Smart buildings and IoT

Connected buildings are no longer futuristic. IoT-enabled systems provide real-time monitoring of energy consumption security and space utilization. According to Commercial Property Executive, the global smart building market is projected to surpass $229 billion by 2026. Facility managers are leveraging software and analytics to detect inefficiencies, schedule predictive maintenance and improve comfort for occupants. These tools make operations more efficient and position organizations to stay agile in an increasingly data-driven environment.

Sustainability and ESG reporting

Sustainability has become a core priority, not a side initiative. Companies face increasing regulatory pressure to report on environmental performance, while tenants and employees expect visible progress. Facility leaders are responsible for reducing carbon footprints, implementing waste management programs, and aligning with ESG frameworks. In practice, this means pairing building-level initiatives with services that reinforce sustainable behaviors, such as recycling programs or wellness activities that cultivate an environmental mindset. Taken together, these practices support compliance requirements while also strengthening organizational reputation.

Employee experience and workplace hospitality

A defining shift in 2025 is the way facilities influence the workplace experience. Organizations recognize that employee experience strategy is key to attracting and retaining talent. Workplace hospitality management services have moved into the spotlight, turning buildings into destinations worth the commute. As companies balance return-to-office goals, spaces that offer concierge support, food and beverage programs, and community engagement services create an environment where employees feel supported and valued. As an example, our work-life balance services improve the employee experience, giving giving employees time back to focus on their priorities while building a culture that encourages connection.

Outsourcing and partnerships

The complexity of modern facilities demands specialized expertise. Many organizations are partnering with providers like Circles to deliver integrated solutions that extend beyond maintenance. These include hospitality services, employee and guest concierge support, and cultural programming. By outsourcing to trusted partners, facility managers reduce operational risks, access scalable solutions and deliver a workplace experience that drives loyalty and performance.

Challenges facing facility managers

While the opportunities are substantial, managers also face pressing challenges in adapting to new demands.

Rising operational costs

Inflation and rising energy costs continue to strain budgets. The U.S. Energy Information Administration (EIA) reported a 15% increase in commercial electricity prices between 2021 and 2023. Facilities teams must find ways to improve efficiency without compromising comfort or safety. Smart building technologies and renewable energy investments help reduce long-term costs, but initial capital outlays can be a barrier.

Talent shortages in FM

The industry is also grappling with a talent shortage. Facility management requires expertise in engineering, sustainability, and increasingly, hospitality. Many skilled managers excel in building operations but lack experience in creating people-first spaces. Workplace hospitality is emerging as a critical skillset, making it essential for leaders to expand their capabilities or partner with providers who specialize in this domain.

Technology adoption and integration

While the benefits of new systems are clear, implementation can be daunting. Integrating IoT platforms, security software and analytics tools requires alignment across IT and operations. Resistance to change and limited training resources often slow adoption. Successful facility leaders approach technology as part of a long-term employee experience strategy rather than a quick fix.

How companies can prepare for the future of FM

Forward-looking organizations are already adapting their facilities strategies to align with these shifts.

Investing in digital tools and analytics

Predictive maintenance powered by analytics is quickly becoming a standard. Facility managers who use data-driven insights reduce downtime, extend equipment life and manage costs more effectively. Advanced tools allow leaders to understand real-time occupancy trends, space usage and energy performance — information that drives both efficiency and sustainability.

Partnering for workplace services

Providers like Circles play an essential role in bridging the gap between building operations and people-first experiences. Through hospitality, concierge and community engagement programs, Circles enhances the value of physical spaces. How?

• Employee and guest services personalize the workplace experience, making every person who steps into the building feel valued and supported

• Community engagement services like curated on-site events build culture, encourage connection and optimize underutilized space

• Work-life balance services help employees reduce stress, improve quality of life and feel more present when on-site, improving their performance

These services extend beyond the walls of the facility to create environments that improve the employee experience and align with organizational culture.

Building a resilient, people-centered FM strategy

The most successful organizations will build strategies rooted in flexibility, well-being and adaptability. This includes repurposing space to meet evolving demands, embedding wellness into workplace design and balancing environmental responsibility with financial performance. A people-centered approach strengthens culture while positioning facilities as vital assets that support business goals.

The future outlook for facility management

Looking ahead, we see the future of facility management evolving around hybrid work, ESG imperatives and employee-first strategies. Technology adoption will accelerate, but human-centered design and workplace hospitality will remain differentiators. Facilities leaders who embrace partnerships and data-driven practices will not only optimize performance but also transform workplaces into strategic drivers of culture and growth.

Frequently asked questions on facility management

What are the latest trends in facility management?

Key facility management trends include the rise of smart buildings and IoT, stronger sustainability requirements, a growing focus on employee experience and greater reliance on outsourcing partnerships.

How is technology changing facility management?

Technology is enabling real-time data analysis, predictive maintenance and even space optimization. From IoT sensors to advanced analytics software, these tools help managers improve efficiency, reduce costs, and create smarter, more adaptive workplaces.

Why is sustainability important in facility management?

Sustainability is tied to compliance, cost savings and brand reputation. Facilities leaders play a central role in reducing carbon emissions, managing energy use and meeting ESG goals, all of which impact organizational performance and credibility.

What skills will facility managers need in the future?

Facility managers will need expertise in digital systems, data analytics, sustainability practices and workplace hospitality. As the role becomes more people-centered, soft skills like communication, culture-building and adaptability will be just as important as technical knowledge.