How often do you interact with AI? Many of us currently rely on artificial intelligence to make our lives easier in one way or another, whether it involves asking a digital assistant for the weather report or turning to ChatGPT for article ideas and outlines.
Since OpenAI introduced ChatGPT in late 2022, generative AI (also known as genAI) has become a useful tool for professionals across various verticals. By 2025, Gartner predicts that genAI will be a workforce partner for the vast majority (90 percent) of organizations globally. This technology is making an impact in a wide range of industries – including commercial real estate.
Given how quickly the tech landscape changes, it’s impossible to say for sure how AI will transform commercial real estate in the future. However, industry experts can make educated guesses. Here are a few ways AI might revolutionize the commercial real estate space.
1. Support for real estate brokers.
AI-powered chatbots can take over tasks like helping clients find listings that match specific criteria. Bots can also potentially automate some aspects of lease administration, property management, and market research, according to the blog entry “What The Rise of AI Means for Commercial Real Estate CRE” from moduleQ, an AI software development company.
2. Enhanced customer experiences (CX).
AI can support better, more personalized experiences for commercial real estate investors and tenants, according to the Forbes article “Embrace AI Disruption In Commercial Real Estate Investing.” For instance, AI can offer 24/7 customer service for tenants and clients seeking assistance outside of standard business hours. Artificial intelligence can also make recommendations for real estate decisions based on factors like an individual’s budget and location.
3. Office space demand generation
Tech firms focused on AI will need office space for their operations, “underlining the dynamic interplay between AI and the real estate sector,” according to the Emerging Trends in Real Estate® United States and Canada 2024 report from the Urban Land Institute (ULI).
4. Market analysis.
Artificial intelligence can pinpoint patterns based on demographic data which property owners and managers can then factor into rent determination, tenant mix, and marketing efforts, according to moduleQ.
5. Risk minimization.
Armed with AI, property managers can proactively predict equipment failures and perform preventive maintenance, according to Forbes. Additionally, AI can alert property managers and owners about environmental issues by analyzing data from on-site sensors. This will contain costs, improve health and safety for building occupants, and minimize damage to real estate assets.
6. Financial forecasting.
AI solutions can leverage mathematical models to predict the performance of assets and assist with commercial real estate investment, financing, and development decisions, according to moduleQ.
If you’re interested in exploring your commercial real estate options, the Avalon Realty Associates team is available to assist you with client services such as property management, real estate brokerage, tenant representation, and property investment.
Visit our Contact Us page, call 847-506-1000 or email info@avalonreal.com to connect with our team.