Transcript
Office vacancies may dominate the conversation, but the greatest momentum is elsewhere
The commercial real estate (CRE) recovery is anything but uniform. While workplace enviornments begins to climb out of record-high vacancies, industrial, multifamily, and data center assets are already in high gear.1 The data center sector is experiencing significant growth. Industrial space remains in high demand. And in multifamily, occupancy and rents are rising as construction eases in 2025.
A realignment in demand, and in strategy
What's driving the shift? Demand is shifting toward infrastructure that supports digital growth, urban housing needs, and e-commerce logistics. For owners, success in today’s top-performing segments depends on making operations as strategic as the assets themselves.
Consider the data center boom: At a leading supercomputing facility, ABM’s cooling and electrical teams partnered to deliver advanced system upgrades that ensured uninterrupted uptime and protected critical infrastructure—demonstrating the power of integrated facility services in mission-critical environments. In the industrial sector, ABM powered up a major distribution center by upgrading its electrical infrastructure and implementing energy-efficient solutions. This enabled 24/7 operations, improved reliability, and enhanced efficiency through automation and smart technology—showcasing how we support high-demand logistics.
The operational excellence imperative
In today’s most competitive asset classes, performance hinges on how well a facility runs, not just how full it is. Investors and tenants alike expect seamless service, sustainability, and smart infrastructure. Meeting those expectations takes a level of operational sophistication that many property teams can’t achieve on their own.
Data centers: As AI workloads increase energy demands and introduce more complex cooling challenges, the margin for error disappears. Zero downtime is non-negotiable. At the same time, compliance requirements are tightening as data centers become mission-critical infrastructure.
Multifamily: Properties face rising pressure to deliver premium living experiences. Occupants expect responsive service, smart building tech, and sustainable operations.2 Institutional owners, meanwhile, are demanding ESG benchmarks and long-term efficiency, requiring deeper alignment between property operations and investment strategy.
Industrial: Facilities are under constant strain from e-commerce velocity. Around-the-clock operations, automation systems, and last-mile logistics place new demands on facility infrastructure. Reliability, uptime, and responsiveness are now core to tenant satisfaction and retention.
In all three sectors, operational excellence is the key to sustaining value and staying ahead.
What's next: The rise of strategic partnerships
As demand surges across sectors, the divide between top-performing assets and the rest is growing, and facility services providers play a critical role in closing that gap. For owners and facility managers, partnering with the right provider means gaining the expertise and resources needed to drive continuous operational improvement.
In data centers, ABM teams help implement upgrades to mission-critical infrastructure, deliver rapid emergency response solutions, and optimize systems for energy efficiency, ensuring uptime and expanding capacity in line with rising digital demands. Explore real-world examples of these solutions in action.
For multifamily, we can streamline everything from smart building integration to infrastructure improvements and enhanced services like parking. As a result, owners see reduced operating costs, improved resident experience, and a stronger competitive edge.
In industrial environments, our clients are adopting IoT, robotics, and biometrics that enable 24/7 operations, improve labor utilization, and increase safety.
Prediction: The next CRE leaders will be operational innovators
As operational complexity increases, success depends on treating performance as a strategic advantage, not just a maintenance task. As the office market stabilizes and high-growth sectors accelerate, the winners will be those who invest in operational innovation, embrace strategic partnerships, and set the standard for what’s possible. Integrated service models that bring together HVAC, engineering, parking, and more under one tech-enabled partner are helping properties not only stand out in a crowded market, but also advance ESG goals and long-term resilience.
Lead the next wave
At ABM, we’re not just watching these trends—we’re shaping them alongside our clients. If you’re ready to turn operational excellence into your next growth engine, our experts are here to help you chart the course.
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