Today's best real estate professionals are looking for tomorrow’s AI technology
The commercial real estate industry is growing in 2022. While there are many reasons for the boom, part of the growth is due to the adoption of new technology by real estate teams.
Some of the latest, exciting new technology allows teams to leverage AI to add efficiencies to the project delivery process. Smarter, more-informed decision-making is a better way to proactively approach tackling project risks.
Some of the latest, exciting new technology allows teams to leverage AI to add efficiencies to the project delivery process. Smarter, more-informed decision-making is a better way to proactively approach tackling project risks.
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What is AI?
Before we can go any further, allow us to briefly introduce what AI is. AI stands for Artificial Intelligence. We now have “smart” machines capable of performing tasks that typically require human intelligence. It automates and eliminates manual tasks, reduces human errors, and serves up data in real-time, so real estate teams can focus more of their time on strategy and make intelligent, data-backed decisions.
Developers, however, have been slow to adopt any technology that may disrupt their current processes. In order to meet your goals and grow right along with the commercial real estate industry, you need to be open to these emerging tools. Anything that allows you to work more efficiently is worth a second glance.
In this ebook, we’ll talk about the current state of AI for real estate teams, as well as how you can leverage it for your success.
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It’s understandable to want to do business the way you’ve always been successful doing it, but innovation is always imminent. In fact, chances are good that you’re already working every day with technology you didn’t have at the start of your career or even a few years ago. You wouldn’t dream of working without a cellphone or wi-fi access now.
It’s only a matter of time before
AI feels the same way.
A couple of ways financial institutions use AI is by combing through past data for risk assessment when considering loan and credit card eligibility. AI is also helping the industry combat fraud. AI serves as a detection warning system to immediately raise a red flag for suspicious transactions.
Where AI is Being Used in Commercial Real Estate Right Now
Let’s dig further into how commercial real estate professionals are using AI to see how it’s helping add efficiencies across the industry.
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Brokers
Brokers are using AI to find more and better-suited properties for their clients. AI has become an essential tool for them to compile information and compare data. As a simple example, a seller's broker may use AI to determine the market values of their clients' properties. A buyer’s broker can better conduct negotiations when they have AI at their disposal to give them up-to-date market information. This makes it incredibly easy to better match properties with buyers and sellers.
Property Managers
Property managers are using AI in multiple ways to maintain their properties. Everything from adjusting energy use to identifying repair needs can be made easier through the right AI software. Let’s say in a large multifamily property, one unit’s electric bill is significantly higher than the rest. While a human may miss this anomaly, AI will notice the red flag and realize a problem that needs attending to.
Investors
Is now the right time to invest? Will the market dip or is it rising? How long will this trend last? Similar to the financial industry, AI is great for allowing investors within the commercial real estate sphere to make savvy business decisions. Investors are using AI for financial loan modeling, eliminating data entry and manual analysis, and predictive modeling on portfolio performance. All of this serves to help with project returns.
Marketing, Sales, and Advertising
Teams that handle marketing and sales are using AI to analyze data on their potential investors and development opportunities. The benefits of this insider information to a marketer are invaluable! With this smart data, a marketing team is able to serve up personalized ads and messages to investors- speaking to the right people, with the right message, at the right time.
Leasing Managers
A leasing manager’s plate is always full, so it’s no wonder these professionals have leaned so heavily into AI for relief. Leasing managers and firms are now using AI to monitor rental trends, adjust rates automatically, collect rent, and set lease expiration dates.
Accounting
If there’s anywhere you want to eliminate human error, it’s in accounting. Whether you have an accounting department, one accountant, or must handle a majority of the accounting tasks on your own, this is one area that is made particularly easier through the use of the right AI technology.
AI helps automate repetitive tasks like reconciling accounts, inputting data, sorting transactions and more. A person manually entering numbers may make a mistake, adding an extra zero or entering the same item twice. Your trusted AI software can match data from scanned receipts and ensure accuracy.
Eliminate Manual Tasks
If you feel like you don’t have enough time in the day for everything you need to do, you’re not alone. That’s why the fact that AI is able to eliminate many manual tasks is one of the reasons it’s booming in popularity. AI can automate 80% of manual administrative work, 70% of data processing, and 64% of data collection tasks. You’re able to focus on high-value tasks while the software handles the rest.
80% Manual Administrative Work
70% Data Processing
64% Data Collection Tasks
AI-driven technology can automatically extract data from email-based workflows, eliminating the need to manually enter data into spreadsheets. Your data only needs to be imported once. Then, it’s organized into the correct fields and easily accessible to anyone on your team. With AI, you aren’t just migrating spreadsheets to the cloud, but actually automating the administrative work that can bog project teams down, saving your team time as well as reducing the possibility of human errors.
It’s important to note that AI will not eliminate jobs. Rather, it eliminates time wasted on low-value work and helps the entire team focus on the strategic tasks that lead projects to come in before the deadline and under budget.
Forecast and Reduce Risks
According to industry experts, 70% of commercial real estate project delays happen before the ground breaks!
This doesn’t have to happen to your upcoming project though. You can use AI to find patterns in past projects and anticipate challenges on a new project.
A commercial real estate team that adopts this kind of technology can reduce the time it takes to run a real estate project by 30 40%, ensuring every project is on time and comes within budget.
You may be wondering how AI is able to forecast and reduce risks so efficiently. It does so in a variety of ways. One example of this would be by collecting and indexing vendor information, meaning you can compare rates and mitigate risks from using unreliable vendors.
Automate Key Reporting
Anytime a task is automated, you’re going to have more reliable key reporting. AI doesn’t have the risk of human error that members on your team (or you!) do.
AI technology can collect and process data to standardize reporting and measurements, as well as produce more consistency and transparency.
You will be able to take advantage of reporting templates and customization options built based on industry standards, then populate these reports based on the data within your system. This can be anything from monthly draw requests, executive schedule summary, risk register, vendor tracking report, and beyond.
Current technology is solving big real estate challenges.
The tools are not only reinventing the way professionals perform their jobs, but they are also transforming the commercial real estate industry as a whole, by:
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Creating more opportunities
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Driving efficiencies
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Mitigating risks
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Streamlining the process
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Generating better outcomes
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Eliminating mistakes
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Saving money, effort and time
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Decreasing overhead costs
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Finishing projects on time and on budget
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Allowing teams to focus on more important tasks
Real Estate Intelligence is just the latest innovation in commercial real estate.
Northspyre, a cloud-based intelligence platform, is making a major impact on the way projects are delivered across the industry. The platform helps real estate developers and real estate project teams use data, automation, and artificial intelligence to get easier, more predictable outcomes on complex projects.
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