Offices of Tomorrow
- Gregg Metcalf
- Sep 3, 2025
- 11 min read
Redefining real estate strategy in an era of talent wars, tech acceleration and resilience imperatives.
The financial services industry is at a pivotal inflection point. Shaped by structural economic shifts, accelerated digital adoption and intense competition for high-impact talent, institutions are reevaluating not only how they operate—but where they operate...
table of contents
...As AI scales from experimentation to enterprise-wide deployment, and as hybrid work norms become embedded in culture, real estate strategy must evolve to meet the demands of a radically different future. What once focused on location and cost efficiency now requires a more multidimensional view.
Today, financial services corporate real estate (CRE) must balance innovation enablement, talent proximity, space adaptability and profitability imperatives.
Across global markets, portfolio decisions are being reframed through the lens of workforce agility, organizational productivity and long-term resilience. CRE functions are playing a more dynamic role in shaping enterprise transformation.
Strategic alignment between portfolio strategy and talent requirements is now essential for future-proofing operations. From global banks co-locating AI teams with product leaders to wealth managers expanding into university-adjacent markets, occupiers are leveraging real estate to attract, develop and retain differentiated talent.
This report offers a roadmap for financial institutions to adapt the CRE portfolio–in response to evolving labor markets, technology shifts and productivity challenges—for the business model of tomorrow.
01- The Talent Factor
Rethinking who, where, and why
• Talent has become the defining currency in financial services transformation.
The war for talent in financial services is being reshaped—not just by headcount demands, but by the evolving nature of work itself. As banks deploy AI at scale and transform legacy functions, the profile of in-demand talent is shifting from transactional roles to hybrid, high-impact skill sets.
According to the Evident AI Banking Index, 1 in 50 banking professionals globally now works in AI or data-related roles, reflecting a sector-wide pivot toward intelligence-led capability. Top-tier institutions are rapidly acquiring digital talent, hiring for roles such as agentic AI architects, responsible AI specialists and bridge professionals who connect business strategy with technical implementation. In fact, the top 10 global banks ranked by AI talent increased their AI workforces by over 12% in just six months and now hold nearly half of all AI talent across the banking sector. AI talent hiring is not just a trend—it signals a structural transformation of the industry.
The financial services talent stack is rapidly evolving
Key insights
Preparing for 2030
To compete in this new environment, financial institutions are focused heavily on ramping up their AI teams, investing heavily in upskilling and reskilling their existing workforce. A prominent example is Lloyds Banking Group, which in 2025 sent 200+ senior bankers back to school for AI training. Lloyds partnered with Cambridge University’s Cambridge Spark program to run an 80-hour “AI bootcamp” for its executives, aiming to build “the most AI-capable leadership team in banking”. These efforts underscore that talent development is as critical as talent acquisition – banks need not only to hire AI experts, but also to cultivate AI literacy throughout their ranks.
71%
of financial services firms plan to invest in reskilling to prepare for AI transformation, while more than half are redesigning promotion tracks and modernizing workplace models to attract next-generation talent Source: WEF 2025 Future of Jobs report
Automation in the financial services sector is projected to not only reduce the proportion of total work tasks predominantly performed standalone by humans, but also to reduce the share of total work tasks currently delivered through human machine collaboration.
Call to Action
For real estate leaders, the takeaway is clear: where institutions hire, how they organize teams and what talent they prioritize must shape CRE decision-making. Location, space and workplace design should be optimized for agility, skills access and sustained innovation.
02- Building AI-ready Institutions Technology, talent, and the productivity imperative
From pilots to platforms
AI is no longer a frontier initiative for financial services—it is a business-critical capability shaping everything from client onboarding to fraud detection and algorithmic trading. Institutions are racing to embed AI into core operations, not only to reduce costs, but also to drive innovation, responsiveness and long-term relevance. As this transformation unfolds, CRE strategies should evolve in parallel.
The productivity imperative
Paradoxically, tech investment hasn’t yet translated into commensurate productivity gains.
A McKinsey analysis shows that global tech spending in banking has grown 9% annually in recent years, far outpacing revenue growth of 4%. However, unlike most other sectors, which saw productivity increases, U.S. banks have experienced an average productivity decline of 0.3% per year since 2010. The reasons are multifold—complex operating models, layered processes, legacy IT systems, and ever-growing compliance demands have hampered banks from realizing tech’s full benefits. Clearly, simply investing in technology is not a guaranteed path to efficiency or reduced real estate needs.
The paradox signals a deeper issue and raises critical questions about how financial services firms are implementing technology and whether they are fully leveraging its potential. Are they simply automating existing inefficient processes, or are they fundamentally rethinking their workflows and organizational structures?
A stark illustration of this dysfunction: a McKinsey study of how bankers spend their time found that, among employees ranked three to seven levels below top executives, 60% to 70% of the workday is consumed by internal meetings, reports, and updates—activities that often do not improve customer outcomes. Only 30–40% of employee time went to client-facing or output-generating work. In contrast, at tech companies more than 80% of employees’ time focuses on clear productive output. The workplace itself—both the physical office and the work norms within it—plays a role in this paradox. Reimagined workplaces and operating models are essential to unlock productivity from tech.
Leading banks are recognizing that technology adoption must go hand-in-hand with cultural and workplace transformation. Notably, banks are rethinking their real estate footprints as part of their productivity efforts. Initiatives include consolidating and relocating offices to tap talent and cost efficiencies, as well as retrofitting spaces to new ways of working. For example, American Express and Goldman Sachs have expanded their large operations and technology centers in India, placing greater emphasis on engineering and AI development to tap the country’s vast talent pool—not simply as a cost play, but to accelerate their digital innovation agendas.
Reinforcing this point, JLL’s 2025 Occupancy Planning Benchmarking Survey found that financial services firms cite improving employee experience as their top hybrid work goal—surpassing cost reduction and footprint cuts. This finding indicates a shift in mindset as companies increasingly view real estate as a lever for performance.
Case in point:
JPMorgan Chase’s tech-forward flagship headquarters
Perhaps the boldest example of the new workplace ethos is JPMorgan’s upcoming global headquarters at 270 Park Avenue in New York. Slated to open in late 2025, this $3 billion, 60-story tower is explicitly designed to “define the modern workplace” for the 21st century.
Experience
Flexible “neighborhood” floors with modular collaboration zones, immersive AI demonstration studios, and a 60-foot digital art wall in the main atrium that doubles as an interactive data visualization canvas
Wellness
Living-green walls spanning multiple floors, on-demand recovery suites with light-therapy and massage pods, circadian-rhythm lighting systems, and real-time air-quality monitoring tied to building controls
Connection
Seamless micro-mobility link to JPMorgan’s global network – real-time video conference hubs that connect 270 Park’s trading floors, London Canary Wharf and Mumbai campuses; and direct access via multiple mass-transit lines
"At a time when talent, technology, and transformation are reshaping the rules of value creation, it has never been more critical for financial institutions to future-proof their real estate portfolios. "
–Bobby Magnano Financial Services Division President, JLL
03- Location as a magnet for talent: Optimizing the global footprint for scale and momentum
To support an AI-driven, talent-centric agenda, financial institutions are reshaping where they operate. The traditional model – a single monolithic headquarters in a financial center with far-flung back offices – is giving way to a more dynamic network of hubs. The future portfolio is distributed yet connected, leveraging locations that offer the best combinations of talent availability, innovation ecosystem, cost efficiency and quality of life.
The Global Financial Centers Index (GFCI 37) confirms that New York remains the world’s top financial hub, followed by London, Hong Kong, Singapore and San Francisco.
These cities continue to attract core banking functions—but secondary markets are rising fast: Toronto (#23), Dublin (#14) and Frankfurt (#11) are gaining traction because of their bilingual talent, regulatory clarity and digital readiness.
Financial services companies are prioritizing growth to capture both deep talent pools and the fastest-growing, specialized labor markets. New York still leads with 627,500 financial services jobs (up 5.2% since 2022), reflecting its preeminence in sought-after financial services and tech-oriented skills.
Several fast-growing centers are capturing attention:
• Vancouver (+22.1%)– driven by a burgeoning fintech and wealth-tech cluster and Canada’s competitive immigration pathways
• Warsaw (+19.8%) – reflecting Poland’s rise as a shared-services and automation hub for risk, compliance, and data analytics
• Toronto (9.7%) – fueled by major redevelopments like CIBC Square and BMO Place that consolidate tech, AI, and operations teams into amenity-rich campuses.
• Singapore (+9.9%) – as a regional headquarters for Asia-Pacific banking, wealth management, and fintech innovation
• Atlanta (+9.6%)– driven by large bank tech and operations centers benefitting from lower costs and strong university pipelines
New York remains unmatched in pulling deep finance and technology talent—from quantitative researchers and risk-modelers to AI/ML engineers and digital strategists—thanks to its unparalleled ecosystem of universities, startup incubators and capital markets infrastructure. As banks seek skills in areas like generative AI, algorithmic trading and advanced cybersecurity, New York’s deep labor market continues to outpace all other global hubs.
Key considerations for new financial services hubs:
In practice, banks are establishing tech and innovation hubs in talent-rich cities, partnering with universities and tech firms and consolidating space to foster collaboration and culture.
Several key strategies are emerging in portfolio optimization
Clustering in innovation ecosystems
Banks are repositioning and enhancing their tech centers: cities with strong tech talent pools such as Seattle, Austin, Toronto, Bengaluru and Singapore are all attracting financial innovation outposts. By planting flags in these secondary tech hubs, companies tap fresh pools of engineers and often lower costs compared to the primary hubs.
University partnerships and talent pipelines
Banks are increasingly partnering with academic institutions to secure future talent and ideas. While Lloyds sends senior staff to Cambridge University for AI training, other banks sponsor university research centers or host incubators on college campuses. Such partnerships not only upskill current employees but also signal to students and researchers that the bank is forward-looking. In some cases, banks have even built innovation centers in college towns to recruit grads. The emphasis is on creating a continuous talent pipeline fluent in the latest technology—especially vital for emerging fields like quantum computing or advanced analytics.
Next-gen headquarters and regional expansions
Beyond consolidation, some banks are making high-profile investments in new headquarters or regional centers aligned with strategic growth areas. JPMorgan Chase offers two striking examples. While its tech-centric New York HQ is under construction, JPMorgan is also expanding aggressively in Paris to grow its post-Brexit EU presence.
Consolidating and upgrading key sites
To enable collaboration and break down silos, many financial firms are consolidating dispersed teams into fewer, larger sites with better amenities. The strategy often means moving out of smaller older offices into modern campuses or towers that can house multiple business units under one roof. City National Bank of Florida (CNB), for instance, announced plans to expand and consolidate its headquarters by moving all Miami-area staff into a new 145,000-square-foot Class A building in Coral Gables.
Tech and operations hubs in emerging markets
A notable financial services CRE portfolio trend is the build-out of centers of excellence in lower-cost, talent-rich markets like India, Poland and Mexico. As previously discussed, American Express, Goldman, Citi and others have tens of thousands of staff in Indian cities—including Bengaluru, Mumbai and Pune—where they can recruit top engineers and analysts, often partnering with local universities. Mexico has also entered the radar: BBVA’s rapid AI talent growth is credited to its “AI Factory model” in Mexico City, which acts as a development hub feeding the wider organization.
Flexible workplace and space-as-a-service
Lastly, banks are tapping into flexible office solutions to optimize their CRE portfolios. Flexible solutions can mean maintaining a core owned/leased footprint while using coworking or serviced offices for project teams, innovation labs or new market entries. The agility to scale space up or down as needed provides a buffer against uncertainty. In some cases, banks are creating internal flex spaces that different departments can share. The goal is a resilient portfolio that can flex with economic swings, evolving workforce sizes or shifting geographic needs.
04- How leading banks are redefining real estate
1–
JPMOrgan Chase New York
Its 270 Park Avenue tower integrates environmental, wellness, and productivity design, supporting hybrid models, co-located innovation teams, and AI experimentation.
2–
Top 10 US Bank Mumbai
The firm’s recent 74,000-s.f. lease in Worli aligns with a broader movement to place tech-forward functions in India’s digital capital.
3–
CommBank
The bank’s U.S. push is focused on tech market access, with new collaborative environments designed for hybrid product teams.
Other recent portfolio moves
1- India
• JPMorgan Chase opened two 1 million-s.f. campuses in Mumbai and Bengaluru (2023), housing tech, risk and operations teams. • Morgan Stanley expanded its presence in Mumbai with a 1.0 million-s.f. building that supports 12,000 staff. • A Top 10 Global Investment Bank expanded their footprint in Mumbai through a 74,000-s.f. lease.
2- Dallas
• A Top 10 Global Investment Bank is constructing a new Dallas campus with an office spanning 800,000 s.f. that is slated for completion in 2028. • JPMorgan Chase expanded its downtown Dallas office by 31,000 s.f. and will be the anchor tenant for a new mixed-use development.
3- Mexico City
• BBVA’s 200,000-s.f.“AI Factory” campus now hosts 1,000+ analytics and AI experts. • Capital One established a technology center in 2024 with an initial goal of hiring 1,500 employees within three years.
4- Poland
• Citi invested €20 m and added 300 roles in its Warsaw global services center (2025). • Standard Chartered expanded its 1,300-employee Warsaw office to a full-service EU branch, leveraging Poland’s talent pool and cost base.
5- Core Hubs
New York • JPMorgan’s 2.5 million-s.f. 270 Park Ave is slated for delivery in late 2025. • Citadel continues to expand its footprint, leasing 502,000 s.f. at 660 Fifth Ave.
Toronto • CIBC will consolidate into CIBC Square Phase II as it nears completion, leasing over 1.6 million s.f. across both towers. London • JPMorgan Chase leased 150,000 s.f. of overflow space in Canary Wharf.
These forward-looking examples point to a financial sector reinventing itself.
These organizations are effectively asking:
How can our buildings and locations best serve our people and our mission?
05- The path forward: A call to action...
In an era defined by talent wars, tech acceleration and resilience imperatives, leading financial institutions recognize that real estate strategy is not peripheral—it is central to competitive advantage. The ability to attract and empower talent will distinguish the winners, and that means providing workplaces that people want to be in. The ability to deploy technology for true productivity gains requires reimagining work processes and the physical environment together. Concurrently, the need for organizational resilience calls for agile, future-proof real estate that can weather market fluctuations, regulatory changes or even global disruptions. To fund these strategic shifts without overburdening the balance sheet, banks should turn to creative deal structures—cap-ex sharing with landlords, performance-based leases, sale-leaseback arrangements, green-incentive financing, and others. These tools can unlock premium locations and fund fit-out investments while preserving capital flexibility. It is no coincidence that banks making bold moves in AI and digital are the same ones elevating their work environments. By learning from tech industry practices and marrying them with the trust and stability of finance, financial services firms are creating the portfolio of tomorrow—today.
How to Stay Ahead
Conduct a Needs Analysis to align your real estate strategy with your business objectives.
Secure and Optimize Office Location(s), Space(s), and Lease(s).
Maximize Profitability, Recruitment, and Retention
Many companies lose millions of dollars due to lack of employee engagement, loss of top talent, and inefficient or unneeded office space.
Working with Gregg Metcalf, clients gain the insights, the analysis, and the plan to obtain the lease and office space that retains the best employees, attracts top talent, and maximizes productivity as well as profitability.
To Contact Gregg Metcalf:
email: gregg.metcalf@jll.com
mobile: 404.661.9284
Comments