The automation wave is bringing new disruption across industries and commercial real estate has not been left behind. Today’s commercial real estate investors, brokers, agents, and appraisers are relying on the power of artificial intelligence to transform their conventional ways of conducting business into smart automation. By adopting modern technology and combining it with the expertise of real estate professionals, commercial real estate players are able to improve the efficiency of their operations.
In this guide, we shall look at the different ways in which artificial intelligence is transforming the commercial real estate sector.
- Automating financial modeling
Financial modeling is an essential component of commercial real estate. For many years, data collection, entry, and analysis have been done manually and this has not only been time-consuming but also labor-intensive. With the adoption of artificial intelligence technology, commercial real estate players have now automated the financial modeling process through pattern recognition algorithms.
This has led to a drastic reduction of administrative costs as human resource is no longer needed to manually enter data, compute, and analyze. With machine learning, everything is automated and the final data analysis is more accurate and free from human errors.
- Accurate commercial real estate investment forecasting
For any commercial real estate investment to be successful, it must be pegged on predictive analysis. AI technology solutions make it easy to predict the future by accurately predicting possible future housing market trends. Automated forecasting helps real estate investors to predict future property prices and to understand the best time to buy or sell their commercial real estate investment properties.
Artificial intelligence has also democratized investment forecasting tasks in most commercial real estate firms as it was only reserved for well-trained and experienced data analysts. By integrating AI technology into investment forecasting, experts can produce more accurate and quality prediction analysis.
- Bots are reducing the work of brokers
With the increasing number of online listing platforms, more prospective real estate investors can begin their property search online thus, reducing frequent engagements with brokers and real estate agents. Gone are the days when brokers would spend a lot of time looking for properties for sale and then linking them with interested buyers.
Although brokers and agents still play a role in the sale process, their active participation is greatly reduced since investors can get access to unlimited online listings with just a click of a button.
- Enhancing marketing and sales strategies
Today, real estate investors, buyers, brokers, sellers, and other players are now relying on the internet to get quick updates on the latest commercial real estate deals and opportunities. To maximize sales, commercial real estate investment firms and individual investors are using AI technology to create personalized marketing promotion online Ads.
The use of lead management systems helps in creating customized search results that improve customers’ experience by streamlining marketing and sales processes.
Brokers also use past sales data to predict and offer buy or sell recommendations to interested investors. Artificial intelligence makes it possible to carry out market analytics and compare different market data for quick and accurate decision-making.
- Automating building systems
The concept of smart homes is now a reality thanks to IoT (Internet of Things) technology integration in modern home gadgets. Today, home devices and gadgets can communicate and share data making it easier for investors and property managers to manage commercial properties.
Tenants are also able to use modern appliances like thermostats, smoke detectors, automated HVAC systems, digital meter readers, and other eco-friendly automated systems to improve efficiency and lower energy consumption. Smart homes help reduce operational costs, and wastage of resources and encourage routine maintenance of building systems to ensure commercial properties provide a safe and comfortable living environment to all occupants.