AI is revolutionizing the commercial real estate (CRE) industry with new technology that enhances efficiency, decision-making, and project management. From optimized property management to enhanced market analysis, AI is improving the tools and resources CRE professionals have at their fingertips. The combination of AI and human intelligence has led to the growth of the CRE industry, enabling professionals to stay ahead and make knowledgeable, data-driven decisions.
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Enhancing Efficiency and Decision-Making
AI helps put CRE professionals at the forefront of the industry by improving and speeding up the overall transaction process. Whether buying, selling, or leasing commercial properties, AI technology can analyze vast amounts of market data, target specific areas of interest, and identify trends based on property preferences. This improves automated valuation models and allows professionals to access efficient data and anticipate market changes in real-time.
AI tools like CoreLogic use machine learning algorithms to analyze property characteristics, location attributes, historical sales data, and current market trends. This results in accurate and objective property valuations, helping professionals make informed pricing decisions and investment choices[2].
Personalized Client Experiences
Although AI is not commonly known to be personable, it can improve client and realtor relationships through personalization. AI can better target potential investors with personalized property recommendations and blueprint virtual tours for buyers. AI also provides 24/7 personalized interactions with customers through tailored messages based on past interactions, enhancing engagement and overall customer satisfaction for companies.
AI-driven chatbots can handle routine tenant inquiries, schedule property viewings, and provide instant responses to customer questions. This not only improves customer satisfaction but also frees up time for real estate agents to focus on more complex tasks.
Evaluating Site Plans and Markets
One key way AI is integrating into the CRE industry is through evaluating large site plans and locations. AI-driven platforms can match buyers with properties based on their preferences and needs, as well as provide real-time market analysis based on data such as rental rates, occupancy rates, and consumer behavior. Using AI in this format can lead to greater risk prevention and improved understanding of how to maintain the property being evaluated.
AI platforms like Reonomy analyze vast datasets to identify investment opportunities and provide insights into market trends. This helps investors and developers make data-driven decisions about property acquisitions and developments.
Smart Building Design and Sustainability
AI is a valuable tool for professionals in the commercial real estate industry looking to increase a project’s sustainable efforts. It can help design energy-efficient commercial developments and perform environmental impact assessments. AI is also useful for evaluating and analyzing sustainable factors like carbon emissions, waste generation, and resource consumption. This allows architects and developers to create more sustainable materials and design choices.
AI tools like Spacemaker use algorithms to optimize building designs for energy efficiency and sustainability. These tools can simulate various design scenarios to find the most sustainable and cost-effective solutions.
Navigating Complex Projects
For commercial real estate professionals, AI is a useful tool for navigating complex projects, especially when building strategies. Innovative technology and resources will continue to shape the industry as more forms of AI are incorporated to increase cash flow, maximize investment returns, and boost operational performance.
AI-powered project management tools like Procore help streamline construction processes by providing real-time updates, tracking project progress, and identifying potential issues before they become major problems.
Supporting the CRE Industry
As AI continues to develop and expand, new tools are being created to support the work of professionals in the commercial real estate industry. From gathering and analyzing market data to targeting specific areas and identifying trends, AI is proving to be a valuable tool in this industry.
AI-driven market analysis tools like CoStar provide comprehensive data on commercial properties, including vacancy rates, rental prices, and market trends. This helps CRE professionals make informed decisions about property investments and management.
Author: Jason Wesley Phillips, co-owner and founder of The Toy Barn, principal and managing member of Wesley Development Company, LLC. Wesley Development Company LLC is a family-owned and operated real estate development company. Its principals include Paul Wesley Phillips and his son, Jason Wesley Phillips, who also operate Philips and Associates Realty Company LLC. The companies develop and market various types of real estate projects in Columbus, Ohio, and Phoenix, Arizona, including Toy Barn.
