Updated: Jan 16, 2020
Could AI Improve the Quality of Your Commercial Real Estate?
The traditional design and build processes used for creating new commercial real estate (CRE) are fraught with opportunities for waste and mistakes. Despite the hard work of many trained and talented professionals, there’s always the potential for human error in the planning and construction stages. Embracing the power of artificial intelligence (AI) will soon dramatically improve the quality of both new and existing commercial real estate.
Analytics for Designing Building Automation Systems and Energy Savings
Some of the greatest improvements will come from the use of advanced AI analytics to design better commercial buildings from the ground up. Business information modeling (BIM) is a powerful field of AI tools that help model how a building will perform in real life. By estimating the energy usage or efficiency of different designs, project managers, owners, and tenants can come together to reach specific goals. AI-powered software is also becoming available to both design and manage commercial building automation systems. From robotics involved in manufacturing to smart retail stores, AI is essential for all of these automation upgrades and more.
Building Relationships Between Project Members
AI isn’t just for technical steps in commercial real estate projects. Whether a project involves new construction or just the sourcing of a building to purchase or lease, there are often dozens of different parties involved in the process. AI-empowered tools are currently under development to improve and build new relationships between these project members, with a specific focus on the commercial real estate sector. These tools can help improve matches between clients and contractors, flag relationships that are going too long without communication or meetings, and combine the input of everyone involved.
Automating the Building Maintenance Process
The next wave of commercial real estate maintenance is the predictive facilities management trend. It’s driven by a new branch of AI technologies that transform the facilities management cycle from reactive to proactive. By using the power of machine learning to notice patterns that lead to accurate and efficient lifecycle upgrades, commercial real estate is easily maintained on a minimal budget and with few customer interruptions. Commercial real estate, in particular, can cause serious tenant or building owner loss when a maintenance failure leads to a service interruption. Bringing the power of AI to the facilities management equation for both older and new commercial real estate alike will prevent many interruptions by optimizing the schedule for repairs and upgrades.
Keep your eye on the latest developments in real estate AI over the next few years. Other developments are likely to include marketing and listing tools, commercial leading software with AI integration, and integrated workplaces that allow for remote access from anywhere on the planet.
From machine learning algorithms to predictive business analytics, AI has the potential to integrate into the commercial real estate investment transaction process. While we know leasing, market knowledge, and arranging and executing deals fall under the scope of human analysis, coupling that with machine learning algorithms will certainly improve real-time investment decisions.
“Nova Group recognizes that artificial intelligence is being infused in almost every sector, and our business is no different. We continue to embrace technology to build more efficient processes that can reduce human error. We are interested to see how AI will transform the commercial real estate industry.” – Joe DiBernardo, Vice President – Construction Services Group Manager, Nova Group, GBC