How will AI and IoT Technology Impact Commercial Real Estate?
Artificial intelligence and the IoT are the most significant disruptors in today’s commercial real estate industry. By all indications, that’s a trend that will continue in the years to come. More than ever, building owners, operators, professionals and investors today need to be adaptable and able to see the big picture. Automation including IoT sensors can be a big part of that puzzle, both as a way to gather necessary data and as a tool for optimizing your time and resource use.
AI has the potential to impact the sector at every level, from development through sales and management of properties.
AI and intelligent technology such as IoT sensor applications are already prompting major shifts in all commercial real estate sectors, office builldings and facility operations. Learn how you can adapt and thrive;
Efficient CRE Marketing
Any place there’s a large amount of data involved, implementing AI can streamline your operations and CRE Marketing. Using lead management systems, you can target your e-mail marketing campaigns, online advertisements, and other interactive promotional materials to the prospective commercial real estate buyers who will be most likely to find them valuable. This more targeted approach saves you time while giving you the power to personalize search results and mailers so they provide more value to customers.
As useful as this is, perhaps the more significant impact has been on analytics and market research. You can quickly compile and compare market data and broker sales records to better match properties with buyers and sellers based on their history and preferences. Natural Language Processing (NLP) algorithms can be an especially valuable tool, letting you break down your findings geographically or demographically to gain insights into customer preferences.
There’s more to the power of AI than the bulk of data it can be used to collect. Aggregate algorithms give you a chance to dig into data on occupancy rates, usage statistics, and price shifts within a given market, revealing trends that were invisible when the data was in one large chunk. It’s that extra level of finesse that differentiates artificial intelligence from previous data processing technology.
Some brokers and listing sites have taken their use of AI to the next level with chat bots that interact with customers while they’re on your site. This is an easy, convenient way to answer buyer and seller questions without them first needing to track down a customer service representative, saving time on the customer end and payroll expense on the commercial side.
Automated Building Systems
IoT tools, devices, services and solutions have expanded the type and volume of data you can collect from properties. Smart home users are already taking advantage of thermostats, outlets, and appliances that track energy usage, and these same devices can be invaluable for managers of commercial properties.
Smart Building and automation solutions include automating the HVAC system in a building is one common, quick upgrade that can significantly lower energy costs. At the most basic level, you can implement recipes that automatically adjust the heat and AC based on data from environmental sensors. This more efficient use of resources cuts down on waste and maintains a consistently comfortable environment, so it has benefits beyond just cost savings.
Beyond these initial savings, building automation has the potential to improve your properties and management through data analytics. With the right algorithm in place, you can better predict and prepare for seasonal changes in energy use, or identify leaks and other needed repairs by identifying spikes and irregularities in heat or water usage. Ultimately, AI allows property managers to be more proactive in maintaining and improving their properties, as well as able to respond more quickly to unanticipated problems.
Building Operations and Tenant Solutions
Internet of Things (IoT) based solutions and services to future-proof your office or building; making workplaces more flexible without compromising security, safety or, ROI.
Tenant Engagement applications keep tenants informed and engaged in sustainability, can provide value added servies with local shops and are mobile ready solutions.
Advanced Desk-mapping and Booking solutions control office capacity, social distancing and allow for spaces to be configured for flexible scheduling of employees coming into the office.
Occupancy Tracking solutions help to provide data to limit capacity, track occupancy levels and are becoming must have solutions for office buildings. Occupancy tacking cn also help configure space as required to understand and manage space usage in the workplace.
Cloud-based Security and Building Management solutions will future-proof your invesmtent and become an essential element of an adaptable workplace providing the ability to react and adjust in real-time, controlling building and office access and ensuring optimum building energy and systems management.
Digital Visitor Experience solutions control the way visitors, contractors, and vendors access and use the office as well. A digital visitor management system is not only more convenient for guests, but it also helps administrators keep track of visitor activity. Using an access control system that includes a digital guest pass feature, admins can easily send a visitor credential via text or email and customized the permissions, all without having to set foot at the office.
Investing in technology that reduces friction for employees and guests can improve the overall experience in your building.
Financial modeling has long been an important part of the real estate equation, but in the past it was a labor-intensive process involving tedious manual data entry and analysis. Pattern recognition algorithms have revolutionized this practice.
What are the specific benefits? The first is a reduction in costs, since you no longer have to pay someone to enter all that data. This frees up staff to put their time into more valuable tasks. Machines are also more accurate than people when it comes to these basic tasks, so both the data and its analysis will contain fewer errors, and be more valuable as a result.
The use of AI has also had a democratizing effect when it comes to forecasting. In a lower-tech world, this is a task reserved for trained data analysts who have both the statistical and industry knowledge to weigh the relevant factors and make an informed decision. The quality of the analysis is highly dependent on the skill level of the individual producing it. While some specialized knowledge is still required to make strong financial predictions, integrating automation into the process makes it more accessible.
Brokers Adapting to Tech
Already the growing prevalence of online listing platforms has shifted the role of agents and brokers in the sales process. Agents and brokers used to seek out properties and bring them to the buyer but more and more buyers are coming up with these lists on their own. Until very recently, though, the insights of a human agent still played a key role in this process.
As AI has become more sophisticated, its ability to make complex decisions has expanded. An experiment called Broker vs. Bot tested this in the real estate sector in 2016. Three Denver-area real estate agents went head-to-head with the bot Find More Genius to find the best home for a buyer based on listings he liked from the local market. In all three contests, the buyer preferred the house the bot had chosen.
This doesn’t mean brokers and agents are obsolete. From viewing properties to contract negotiations, there are still plenty of reasons it’s smart for buyers to have an experienced professional in their corner. A smart agent will see bots like Find More Genius as a powerful tool that they can use to find perfect properties for their clients more quickly and free up the time they spend poring through listings.
Benefits to CRE Professionals, Developers, Investors, Owners, Property, Facility Managers and Services Contractors
Those who have the foresight to implement these tools will be in the best position to not only survive the current upheaval, but thrive as a result of it.
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