Since the start of the industrial revolution, the world has seen skills shift, resulting in ever-changing jobs and new skills required to keep pace with emerging technologies. Artificial Intelligence (AI) is a powerful tool that can improve the efficiency of commercial real estate and is a branch of computer science that creates intelligent machines that can work and react like humans.
How Will AI Affect Commercial Real Estate?
Now that we have a basic understanding of AI let’s explore how it will be applied in commercial real estate to advance competitive advantage.
Real-Time Population Analysis and Prediction
AI will impact commercial real estate through data analytics. In the past, we primarily used data analytics for historical analysis. However, data analytics is essential for commercial real estate because of the need to make quick decisions in a rapidly changing market as conditions evolve. You can use this to analyze demographic data to identify trends and patterns. We can then use this information to predict future demand for office, retail, or industrial spaces.
Financial and Loan Modeling
One of AI’s most significant ways to impact commercial real estate is through financial modeling. Financial modeling is the process of creating a mathematical model to simulate the financial performance of a real estate asset. Financial modeling is used to make the investment, development, and financing decisions. In the past, it was a time-consuming and manual process. However, with the advent of machine learning, financial modeling can now be done quickly and automatically. This is important for commercial real estate because it allows investors to make better-informed decisions about where to invest their money. It also allows developers to get financing for their projects more efficiently.
One of the most immediate ways AI will impact commercial real estate is through AI Augmentation with bots. A bot is a computer program that can automate tasks that a human would typically do. Bots are already being used in various industries to improve efficiency and accuracy. For example, many online retailers use bots to handle customer service inquiries. In commercial real estate, bots can automate repetitive tasks such as market research, lease administration, and property management. You can also use bots to enhance the way brokers interact with clients.
Enhanced Customer Experience
Commercial real estate is a service industry. As such, customer experience is crucial to success. You can use AI to enhance the customer experience in various ways. One way is through the use of chatbots.
Chatbots are computer programs that simulate human conversation. You can use them to answer customer questions, provide recommendations, and schedule appointments. Using Natural Language Processing, chatbots can understand a human conversation and provide intelligent responses. This is important for commercial real estate because it allows landlords and property managers to respond instantly to their tenants and potential tenants.
Another way you can use AI to enhance customer experience is through virtual reality. Virtual reality allows potential tenants to walk through a property without physically being there. Using VR, landlords and property managers can give potential tenants a realistic view of the property.
IoT for Property Management
The Internet of Things (IoT) is a network of physical devices connected to the internet, such as sensors and cameras. These devices can collect data about their surroundings and report it back to a central database.
IoT devices can generate a lot of data. This data can be used to improve the efficiency of property management. For example, if a sensor detects an empty room, it can automatically turn off the lights. Suppose a camera detects that there is trash on the ground. In that case, it can automatically message the cleaning crew. CRE can also use IoT to improve security. For example, suppose a camera detects someone trying to break into a property. In that case, it can send an alert to the police. We can also use it to improve the safety of tenants. Overall, IoT can make property management more efficient and effective.
Artificial intelligence is a powerful tool that can improve commercial real estate performance. In the future, AI will become more and more commonplace in commercial real estate.