What Is Facilities Management And Where Is It Going?

Facilities management (FM) is known for its role in keeping buildings and equipment running smoothly, efficiently, and safely, but did you know that the field is one of the most critical factors in ensuring the operational success of supermarkets, convenience stores, and other retailers that depend on commercial refrigeration?

Rising energy costs, tougher regulations, and increasing customer expectations are reshaping the field of facilities management — and recent advances in AI and other facilities management technology are only accelerating the field’s evolution. Below, we define facilities management in today’s world, explain the role of facility managers, and discuss where the industry is heading.

What Does Facilities Management Do?

At its core, facilities management encompasses a broad range of services and responsibilities that keep commercial buildings operational, efficient, and compliant. Let’s explore what FM means in different contexts and how it applies to your facilities.

What is facilities management?

Facilities management is defined by ISO 41000, the international standard for FM, and adopted by IFMA (the International Facility Management Association) as “an organizational function which integrates people, place, and process within the built environment to improve the quality of life of people and the productivity of the core business.”

FM professionals coordinate people, processes, and systems to ensure functionality, comfort, safety, and efficiency across buildings and their infrastructure. In practical terms, it encompasses operations such as maintenance, energy management, cleaning, security, waste disposal, and more.

What is building facilities management?

Building facilities management focuses on a single building or portfolio of buildings. It involves maintaining the physical structure and systems — HVAC, electrical, plumbing, fire safety, lighting, and energy efficiency — to ensure safe, compliant, and comfortable environments.

As part of building facilities management, FM leaders monitor equipment performance, schedule preventive maintenance, manage capital projects, and optimize space utilization to support organizational goals.

What is facilities management in construction?

Facilities management in construction bridges the gap between design, construction, and operations. FM input during construction ensures that new facilities are maintainable, energy‑efficient, and compliant with codes.

For instance, specifying materials with long life cycles and designing mechanical rooms for easy access can reduce future maintenance costs. FM teams also plan the transition from construction to occupancy, coordinating commissioning, warranty management, and preventive maintenance schedules.

What is commercial facilities management?

Commercial facilities management (also called corporate or retail facilities management) covers a range of property types — from grocery stores and convenience stores to shopping centers, office towers, and refrigerated warehouses. It includes hard services (e.g., building systems, equipment, and utilities) and soft services (e.g., custodial, waste management, space planning, and security).

Commercial FM teams align asset management with brand standards, regulatory requirements, and customer experience goals while controlling costs.

What does facilities management do?

Facility managers ensure that buildings, assets, people, and processes work together effectively. Their responsibilities include:

• Operations and maintenance: Keeping HVAC, refrigeration, and electrical systems running safely and efficiently
• Asset and energy management: Monitoring equipment condition, performing preventive and predictive maintenance, and implementing energy‑efficiency measures
• Cost efficiency: Controlling maintenance budgets, reducing energy consumption, and extending asset life cycles
• Health, safety, and compliance: Managing cleaning, fire safety, emergency preparedness, and adherence to regulations
• People support: Providing comfortable workspaces, coordinating office layouts, and ensuring smooth return‑to‑work transitions

Effective FM delivers safe, reliable facilities that support productivity and profitability.

Main Roles and Tasks of Facilities Management

Facilities managers wear many hats, and their role has evolved from building caretaker to strategic leader. Three core task areas define modern FM:

• Operations and maintenance: Facilities managers oversee daily building operations — e.g., HVAC, refrigeration, lighting, fire safety, and plumbing — and scheduling preventive and predictive maintenance to minimize downtime and extend asset life
• Health, safety and compliance: Facilities management ensures compliance with health and safety regulations, environmental codes, and energy and emissions standards. Facility managers coordinate emergency response plans and disaster mitigation, protect occupant well‑being, and meet new legislation such as New York City’s Local Law 97 mandating emissions reductions for large buildings.
• Cost and efficiency management: This area focuses on optimizing energy use, tracking work orders and budgets, negotiating vendor contracts, and using data analytics to identify savings opportunities. Outsourcing certain services can yield cost savings of up to 10 to 25% when paired with strategic oversight.

A facilities manager is thus a strategic leader who integrates operations, risk management, finance, and human factors to align facilities with business objectives.

Where Facilities Management Is Going: 4 Trends Shaping the Future

Facilities management is at an inflection point. Four trends will shape its future and create opportunities for forward‑thinking leaders.

1.    Facilities management technology is revolutionizing the industry

Here are some of the ways data‑driven facilities management technologies are transforming the field:

• AI‑driven predictive maintenance tools analyze sensor and equipment data to predict failures and recommend parts, reducing downtime and service visits.
• Advanced building management systems integrate HVAC, refrigeration, and security systems for holistic control and energy optimization.
• Ultrasonic sound technology is emerging for predictive refrigeration maintenance with the ability to detect equipment failures through sound frequencies with high accuracy.
• Augmented‑reality training is poised to help address skilled‑labor shortages by overlaying holographic instructions on equipment for immersive learning. One survey found that one in five facility managers already uses augmented reality and three out of four plan to adopt it within 24 months.

2.    Environmental and regulatory pressures are forcing leaders to adapt

Sustainability and compliance are becoming central to FM. Regulations like New York City’s Local Law 97, which took effect at the beginning of 2024, require buildings over a certain size to cut greenhouse‑gas emissions, while U.S. federal tax credits encourage investments in energy‑saving upgrades.

Net‑zero commitments are driving adoption of advanced building management systems, sensors, and optimization technologies to reduce energy consumption and emissions. Facility managers must track energy use, perform audits, and plan retrofits to meet carbon‑reduction targets while balancing occupant comfort.

3.    Outsourcing and integrated service models are redefining how facilities are managed.

As facilities grow more complex, many organizations turn to integrated service providers to consolidate maintenance, energy management, cleaning, and security under one contract. Outsourcing facilities management can deliver meaningful cost savings by leveraging vendor expertise and economies of scale.

4.    People and skills development will determine future success

Automation will handle more routine tasks, so human skills like communication, leadership, strategic planning, and data literacy will become increasingly valuable. Facilities managers must be adept at analyzing data, managing remote teams, and collaborating with vendors and occupants.

As experienced professionals retire, investing in facilities management training is critical. For example, workforce development programs must prepare the next generation of FM leaders for AI‑enabled environments and evolving roles.

Best Practices for Leaders

To prepare for the future, facilities leaders should focus on a few simple, high‑impact facilities management best practices:

• Preventive and predictive maintenance: Use sensor data and AI to monitor equipment, schedule proactive interventions, and avoid costly breakdowns.
• Smart asset management: Adopt computerized maintenance management systems (CMMS) and IoT sensors to track assets, work orders, and performance metrics.
• Energy management technology: Implement advanced energy‑management systems to track consumption, integrate renewable energy, and respond to regulatory targets. City’s Spark+ platform, for example, combines sensor data with AI to optimize refrigeration and food and beverage equipment, reducing energy costs and emissions.
• Training multi‑skilled technicians: Provide hands-on training featuring real-life scenarios to accelerate skill development and support an aging workforce.
• Strategic outsourcing: Partner with integrated facilities management providers for essential facility functions to gain specialized expertise and realize cost savings while ensuring a consistently executed facilities management strategy.
• Adopt a sustainability mindset: Align maintenance strategies with environmental goals, conduct energy audits, and ensure compliance with regulations.

The Strategic Power of Facilities Management

Facilities management isn’t just about keeping the lights on. It’s a strategic function that drives efficiency, compliance, and innovation. From smart temperature monitoring to cross‑trained technicians, the future of FM lies in proactive management and continuous improvement.

City takes an integrated, data‑driven approach to facilities management that combines proactive maintenance, energy management, and the industry’s most innovative technologies and best practices. Learn more about our Integrated Facilities Management services.