AIs Impact On CRE

AI is gaining popularity among several CRE developers who are excited to see what it can do for the industry in the future and now; however, commercial real estate has not yet fully embraced AI technology. According to a 2022 survey by Deloitte, only 31 percent of the businesses claimed to be currently utilizing AI technology, but 63 percent indicated that they intend to do so in the coming years. The continuing innovation of AI and automation technologies will impact and transform the way investors, buyers, and sellers operate in the industry. Read on to see AIs impact on CRE.

Multifaceted AI Uses For CRE

• Save time and money using data-based thinking.

With the help of predictive AI, investors save a considerable amount of time on the backend due to its assistance in easing the search for potential leads, future forecast data, and identifying properties that enhance personal portfolios.

Several of the best CRE project management tools employ AI to make data-driven decisions. Projects can be assessed at a micro and macro level using AI techniques, and any faults can be rectified in real-time. Additionally, workers can use the time saved by AI tools to focus on project issues that genuinely deserve their attention. In this sense, AI is enhancing human productivity rather than replacing it.

• Promotes Efficiency

Keeping track of building utilities, amenities, and security measures takes a lot of effort and focus when managing a commercial property. These duties had to be done by hand before AI came into the picture. According to Boss Magazine, several intelligent solutions that support multi-site configurations – which can be fully or partially automated – are now powered by AI.

AI can predict maintenance, report any issue, locate a solution, and even schedule a repair if needed. This technology finds problems before humans are even aware of an issue.

• Serving Clients

Throughout any client-agent relationship, AI tools can help ensure that customer service is consistent and of the highest caliber. Agents gain time back to handle other responsibilities when AI assists with client questions, but third parties continue to have a positive interaction with an organization.

Market Analysis With AI

Agents who choose to utilize AI technology will ultimately have a higher chance of attracting and retaining clientele since AI does an excellent job of simplifying the process of valuing a property. It analyzes thousands of data points to give investors and agents valuable insight. AI can quickly find answers regarding the property’s worth, structural features, sales comparables in the surrounding area, and more.

Localize is an example of AI-powered software designed to generate the following information:

• The number of sunlight hours that a property gets in a year/month
• The statistics about the local transportation system
• Parking space availability and prices

All of this information can streamline the process for a CRE transaction, allowing the agent or buyer/ seller more time to focus on other essential activities regarding the deal.

Current AI Adoptions Proving Success

Some investment technology companies have already noticed a significant breakthrough with the incorporation of AI into their practice. It is easy to see how that same technology can be applied to CRE.

Gridium, a software company specializing in smart meter data analysis, is an excellent example of a company leading the way for AI-powered technology, taking advantage of the technology’s several benefits.

Several computer programs assist CRE investors in finding, acquiring, and managing every property in their portfolios. AI can optimize property management in CRE by analyzing data on past and present property performance, predicting future trends, and providing insights on maintenance, energy management, tenant management, and security. This can lead to better decision making, improved efficiency, and enhanced tenant experience. These tools give investors and their associates access to a more accurate and efficient market.

According to Statista, 84 percent of enterprises think investing in AI will increase competitive advantages. Seventy-five percent believe that AI will open up new businesses while providing competitors with new ways to access their markets.

Overall, AI revenue for enterprise applications is expected to continue expanding. Now is the time to adapt to the future of the business.

The Future of AI

Throughout the development and management of CRE, AI plays a vital role in overseeing complex projects and facilities. AI can provide customized customer service, automate repetitive and manual tasks, and proactively manage data. In this rapidly evolving industry, those that adopt a “technology first” attitude will be at an advantage.

CRE is well-positioned to use AI and automation technology to boost production, cut expenses, and eliminate mistakes. On the other hand, as the demand for social and creative talents rises significantly, the number of technology and management professionals will also continue to grow.