Organizations are under increasing pressure to balance cost constraints with rising expectations around office performance. Global research from facility management firm ISS shows that while 83 per cent of leaders believe the workplace plays a critical role in organizational performance, many are still working to align that ambition with financial and operational challenges.
Drawing on insights from nearly 3,000 business leaders across 28 countries and 24 industries, the ISS Facilities Management Outlook highlights how organizations can connect how the workplace is managed, measured and experienced with larger business and asset outcomes. For facilities management (FM) and corporate real estate (CRE) leaders, this represents a shift toward more integrated, performance-oriented approaches.
“Organizations aren’t choosing between cost and experience – they’re being asked to deliver both in a much more complex environment,” said Steve Quick, CEO, Americas at ISS. “The reality is, most organizations are still not structured to capture the full value of the workplace, creating a significant opportunity for FM and CRE leaders to unlock additional value.”
The workplace as a lever for performance
Operational decisions are increasingly tied to leasing performance, retention and long-term valuation as occupiers place greater emphasis on employee experience, flexibility and productivity. Cost control remains at the centre of that decision-making.
Many organizations are working to balance efficiency goals with investments that support experience and performance outcomes, a dynamic that can be complex to navigate across portfolios and operating models.
“Cost discipline remains essential, and organizations are right to stay focused on it,” adds Quick. “The opportunity is in how that discipline is applied – connecting operational decisions more directly to employee experience, tenant demand and long-term asset performance.”
The study also found that FM teams are taking on more responsibilities. Nearly half of leaders say they need support delivering wellbeing (45 per cent) and employee experience (35 per cent), suggesting a shift from operational execution to experience and performance enablement.
Cost pressures
Short-term cost decisions, such as deferred maintenance or reduced service levels, can have larger implications for workplace experience, tenant satisfaction and long-term asset performance. Some organizations are beginning to reframe cost discipline within a performance context, and align efficiency with measurable business outcomes.
Digitalization stalling without proof
Nearly half of leaders (46 per cent) identify digitalization as a key disruptor, yet only 20 per cent prioritize it within their FM strategy.
They recognize the potential of data, smart buildings and digital tools, but many are still working to establish the measurement frameworks needed to confidently scale these investments. In turn, limited data visibility is constraining investment confidence, which slows digital adoption.
For CRE leaders, this gap extends to asset strategy. Without reliable data to link workplace experience to performance metrics like retention, utilization and revenue, it remains difficult to justify investment at scale.
With a growing expectation to align operational decisions with business and investment strategies, the report centres on connecting strategy and execution, clearer measurement of performance outcomes, and more integrated operating models.
