1. Role in Circular Economy Transition
Manages physical assets where circular economy opportunities are most tangible — buildings, interiors, materials and layouts: Participants identified Real Estate decisions, such as leasing, retrofitting and layout design, as core levers for reducing waste and maximizing reuse.
Influences sourcing, design and planning standards that affect material use, adaptability and asset longevity: Groups emphasized that CRE teams can help with sourcing, design and planning, highlighting their power to shape circularity through early-phase decisions.
Enhances employee experience (EX) through circular design, creating a competitive advantage: The annotation “EX as competitive differentiator” pointed to the potential of circular Real Estate strategies, such as adaptable, healthy and purpose-driven spaces, to attract and retain talent.
2. How FM Can Inspire Collaboration
Provide operational insights (e.g., space utilization, asset condition) to inform CRE planning and decisions: FM data can identify underused spaces, inefficiencies and reuse opportunities that might not be visible from a purely financial or leasing perspective.
Collaborate on life cycle assessments and end-of-life planning for fit-outs and materials: There were references to “design for flexibility and deconstruction,” suggesting a shift in how FM and CRE work together to reduce waste at the end of lease or renovation cycles.
Influence capital expenditure strategy by promoting life cycle and service-based models: Participants referenced “total cost of ownership,” “divest to invest” and “as-a-service” approaches that reduce upfront CapEx in favor of prolonged operational value. FM can surface these models and help reframe decision-making around use, flexibility and impact, not just asset acquisition.
3. Tools, Training and Capabilities Needed
Life cycle analysis tools and asset reuse tracking system: The need to quantify the environmental and cost benefits of reuse vs. rebuild require tools that link FM and CRE data streams.
Templates and specifications that embed circularity in materials, layout and leasing terms: The comments point to a need for standard documentation that supports circular principles from the outset of projects.
Training on circular certification systems and performance standards: Groups discussed the relevance of LEED, WELL, BREEAM and similar frameworks in aligning building projects with circular economy goals.
Training on alternative cost models, including service-based procurement and total cost of ownership: The comments identify a need to evaluate and adopt new financing approaches, moving away from upfront CapEx and toward outcome-focused models. This also involves developing the ability to plan retrofits and investments based on long-term life cycle impact rather than short-term expenditure.
4. KPIs and Metrics
Percent of reused, repurposed or modular assets across building projects: Groups noted the importance of tracking material origin and reuse, especially during tenant fit out or renovation.
Portfolio-level metrics: energy efficiency, space optimization and embodied carbon: Smart building data was cited as a critical enabler, helping CRE and FM teams jointly monitor circular performance across sites.
Cost savings through adaptive reuse and reduced strip-outs: Cost efficiency was noted in relation retrofitting decisions, especially when space needs or employee behavior shifts over time.
CapEx vs. OpEx ratio in circular investment decisions: There is a need to shift away from CapEx-dominated models and track how much investment is being restructured toward operating expenditure, especially where as-a-service models or shared usage can improve circular outcomes.
5. Challenges and Barriers
Perceived high upfront cost of circular options vs. traditional fit-out approaches: Circular design can appear more expensive due to materials, certifications or lack of economies of scale, despite long-term savings.
Long lease terms and static planning cycles that limit flexibility: FM and CRE teams often work on different time horizons (e.g., Real Estate may commit to 10-year leases that conflict with agile, circular strategies).
Need for greater collaboration with CFO to implement alternative cost models: Requires buy-in and joint planning with Finance. Without this alignment, CRE and FM may struggle to implement or justify circular solutions within current budgeting frameworks.
International Facility Management Association (IFMA) supports over 25,000 members in 140 countries. Since 1980, IFMA has worked to advance the FM profession through education, events, credentialing, research, networking and knowledge-sharing.
