Stuttgart, Germany, August 4, 2025. Real estate managers are under pressure: environmental, social, and corporate governance (ESG) requirements are growing, skilled staff are short, and the structural change requires fresh responses. Many companies are acting – they build on the strengths of their Corporate Real Estate Management (CREM) departments, rely on central control structures and reorganized facility management. However, one of the hopes of recent years is losing its gloss: digital transformation, long celebrated as the key to efficiency, is now if anything a source of disillusionment. The recent trend study on Real Estate Management gives a comprehensive overview of the trends in property management. The research was carried out by the consultancy firm Drees & Sommer SE that focuses on construction and real estate issues. A total of 303 experts and managers from different sectors took part in the annual online survey, from medium sized enterprises to large corporations. Their assessments paint a complex but clearly contoured picture of the sector.
Digital Transformation: from Panacea to …. Back to the Drawing Board
82 percent of those surveyed continue to see potential in digital solutions – in particular with regard to higher efficiency (82 percent) and process optimization (71 percent). But confidence has declined in comparison with last year. Just 14 percent of the participants are of the opinion that digital processes can help to open up new business opportunities (previous year: 23 percent). “Many digital concepts are currently failing for lack of a proof of concept,“ says Bernd Fisel, Associate Partner at Drees & Sommer and co-author of the study. Concrete implementation and stringent project planning are missing in many cases. The consequence is that there is less trust in short-term success from digital transforming. A clear focus is set on quality and feasibility. This trend is reflected in the rating of service quality: around two thirds of the respondents see plenty of room for improvement at present – 15 percent more than a year earlier.
Skills Shortage: Focus on Qualifications instead of Digital Transformation
While last year digital transition was still the strategy most often referred to as a way to counter the skills shortage, in 2025 the focus is on another lever: 75 percent of the companies surveyed are now relying on targeted training and development to alleviate staff shortages in the long term.
Bernd Fisel comments: “This is a clear signal. The sector has understood that sustainable solutions require the development of competent skills and extended knowledge.“ Hence, companies are increasingly investing in individual training programs, advanced professional training and the nurturing of internal talent. This is not only intended to meet current shortages in staffing, but also to future-proof the staff – especially at a time when digital processes alone cannot solve all challenges.
CREM Organization: ‘Central’ Preferred Over ‘Decentral’
The majority of respondents continue to prefer centralized corporate real estate management. Similar to last year's result, two thirds (66 percent) of the participating firms indicated that real estate tasks are managed in a decentralized manner (65 percent). “Central corporate real estate management (CREM) units are clearly an advantage,“ Drees & Sommer’s Associate Partner points out. Strategies can be implemented in a uniform way; costs are transparently controlled and ESG goals can be more effectively incorporated. The awareness of ESG is indeed growing noticeably: only 17 percent of the respondents stated that they are not or only partly familiar with the concept of ESG. In 2022, nearly half of the respondents admitted not knowing ESG. However, 39 percent of the companies have a coherent ESG strategy in place, a significant rise of 24 percent on the previous year.
Facility Management: Regional Contract Awards Given Preference
There are also signs of a change in facility management. At 51 percent, regional awarding of contracts remains the dominant model. Piecemeal awarding of contracts is becoming less popular (41 percent; previous year: 58 percent). The same goes for global contract awards (currently 12 percent). There is a noticeable trend towards specialization, with subject-specific contract awards increasing significantly. (up from 35 to 43 percent). “Companies want to manage and control their services more tightly and in a targeted manner,“ explains Bernd Fisel. “By engaging specialist companies, they enhance quality, improve trackability and make the services more adaptable,“ he adds. At the same time, transregional bundling of services is continuing, while local individual contract awards are declining further.
Budget Planning: Transparency as the Achilles Heel
Despite all progress, the lack of transparency remains a central problem. 73 percent of those surveyed see this as an obstacle to strategic real estate management. The study reveals that much remains to be done, especially in the area of budget planning. In 40 percent of the companies surveyed, strategic budget planning is still not a given. However, modern tools, such as computer-aided facility management (CAFM) or automated budget solutions, can provide targeted support. “Making smart use of technology will not only help increase transparency but also enhance sustainability in financial planning,“ says Bernd Fisel.
About the trend study
Drees & Sommer’s trend study was conducted in May 2025. 303 real estate experts from different industries – including the industrial and property sectors, finance and insurance sectors, trade and the chemicals and raw materials sectors – participated in the research. The respondents were from companies of different sizes, from mid-sized enterprises to large corporations, mostly headquartered in Germany, Austria and the German-speaking part of Switzerland. The online survey consisted of a total of 29 questions, covering current trends and future developments in real estate management, such as team structures, structural change, contract award models, digital transition, sustainability and what is being done to deal with the shortage of skilled staff.
