By Henry Harrison
Is Facilities Management only about keeping the lights on and the lifts working?
For many, that remains the image. In reality, that view is out of step with today’s market. Advances in digital systems and smart building technologies mean that Facilities Management is now a central factor in how investors, occupiers and regulators judge the quality and performance of a building. The way an asset is managed no longer sits quietly in the background. It can have a direct influence on valuation, long-term resilience and investor confidence.
The case for better measurement
The financial benefits are becoming harder to ignore. Predictive maintenance tools, such as IBM Maximo, SAP EAM or Infraspeak, identify issues before they develop into costly failures. Independent analyses report maintenance cost reductions of around twenty to thirty per cent together with extended equipment lifespans (1). At the same time, digital platforms such as Planon, Archibus and MRI Manhattan allow space to be used more intelligently. Guidance from JLL shows how better space utilisation can reduce operating costs by avoiding heating, cooling and servicing underused areas (2). These gains strengthen cash flow and reduce lifecycle costs. They are outcomes that feed directly into better valuation metrics.
Smart systems, including Siemens Building X, Schneider EcoStruxure and Metrikus, can track energy use, air quality and occupancy while taking routine maintenance and compliance checks out of the hands of stretched FM teams. This leads to more efficient operations, healthier working environments and a better tenant experience. Independent research links improved indoor environmental quality with higher cognitive function and better occupant outcomes (3,4). In European leasing markets, assets that can evidence strong sustainability performance also show measurable pricing benefits, with certified offices achieving rent and price uplifts in multiple studies (5,6). Happier tenants are good for the workplace and good for the balance sheet.
What begins with lower costs and smoother operations strengthens asset performance and, at last, appears to support higher valuations. Well managed, efficient buildings generate more reliable income streams and carry less risk. These are two factors at the core of every valuation model. They also provide the reliable data needed to achieve environmental certifications such as BREEAM or LEED.
Multiple studies link certification with higher rents and stronger yields (7,8). For example, CBRE analysis in 2023 found that certified sustainable office buildings in Paris and Berlin achieved rental premiums of up to eleven per cent compared to non-certified peers (9). JLL work in Central London shows certified buildings transacting at higher prices and achieving higher rents in a large sample of investment deals (10). Case studies across Europe confirm that smart upgrades and modern FM strategies are delivering measurable uplifts in income and long-term value (11).
Regulation is driving change
The regulatory environment is moving the sector in the same direction. The Corporate Sustainability Reporting Directive is phasing in from financial years beginning in 2024 for the largest companies, with further phases through to 2028. It mandates consistent, verifiable sustainability reporting with assurance (12). The EU Taxonomy provides the classification system that defines what counts as an environmentally sustainable activity and it is already shaping investor reporting and eligibility for green finance (13). Digital FM systems and smart platforms are essential tools for meeting these requirements because they centralise energy, emissions and performance data. At a national level, frameworks such as SFG20 in the UK, DIN in Germany, AFNOR in France and NEN in the Netherlands provide maintenance and compliance standards that are easier to meet when embedded into FM platforms (14,,15, 16, 17). This reduces risk and gives investors confidence that assets are being managed to recognised benchmarks.
Where do we start when looking at technology?
Selecting and implementing FM technology is not simply a matter of choosing new software. It is a strategic decision that links building operations with asset management goals. The key considerations include identifying the type of system that best matches organisational priorities, ensuring compliance requirements are met, and putting in place reporting frameworks that connect operational data with investment performance. Bridging the gap between day-to-day management and long-term financial outcomes is what turns Facilities Management from a background function into a genuine driver of value.
More than meets the eye
In the end, FM technology isn’t just about systems or sensors; it’s about what they unlock. It's about data you can trust, assets that perform, and portfolios that hold their value. The real opportunity now lies in using that information to make smarter investment and management decisions.
If you’d like to explore how digital FM can strengthen your assets and meet emerging reporting standards, get in touch with Henry Harrison.
References:
https://www.jll.com/en-us/guides/facilities-management-tech-driving-efficiency-cost-cuts?
https://www.jll.com/content/dam/legacy/jll-com/documents/pdf/emea/25-guide-how-better-use-of-space-can-unlock-cost-savings-uk.pdf?
https://ehp.niehs.nih.gov/doi/full/10.1289/ehp.1510037
https://worldgbc.org/wp-content/uploads/2022/03/compressed_WorldGBC_Health_Wellbeing__Productivity_Full_Report_Dbl_Med_Res_Feb_2015-1.pdf?
https://s3.eu-central-1.amazonaws.com/cdn.a3bau.at/public/2023-12/CBRE_Is%20sustainability%20certification%20in%20real%20estate%20worth%20it_%202023_FINAL_DRAFT.pdf?
https://www.jll.com/en-de/insights/value-creation-through-energy-smart-low-carbon-buildings?
https://s3.eu-central-1.amazonaws.com/cdn.a3bau.at/public/2023-12/CBRE_Is%20sustainability%20certification%20in%20real%20estate%20worth%20it_%202023_FINAL_DRAFT.pdf?
https://www.jll.com/en-uk/insights/sustainability-and-value-capital-markets-central-london-offices?
https://s3.eu-central-1.amazonaws.com/cdn.a3bau.at/public/2023-12/CBRE_Is%20sustainability%20certification%20in%20real%20estate%20worth%20it_%202023_FINAL_DRAFT.pdf?
https://www.jll.com/en-uk/insights/sustainability-and-value-capital-markets-central-london-offices?
https://www.jll.com/en-de/insights/value-creation-through-energy-smart-low-carbon-buildings?
https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/corporate-sustainability-reporting_en
https://finance.ec.europa.eu/sustainable-finance/tools-and-standards/eu-taxonomy-sustainable-activities_en?
https://www.sfg20.co.uk/what-is-sfg20?
https://www.en-standard.eu/din-31051-fundamentals-of-maintenance/
https://normalisation.afnor.org/
https://www.nen.nl/en/nen-2767-1-2017-en-247818?