Harnessing the Power of AI in Commercial Real Estate
In today's fast-paced technological landscape, it is essential to stay at the forefront of innovation. At Apis, when new technology trends arise, we always ask ourselves “What impact can this have on commercial real estate?”
One particular advancement stands out as a game-changer: Artificial Intelligence (AI). It used to be a way overused buzzword with everyone claiming that they had it. Now advancements have accelerated to the point where it cannot be ignored. So much so, that the topic is up 16x on earnings calls from Q4 ‘22 to Q1 ‘23 according to CB Insights. Obviously, company executives are paying attention, so we probably should as well.
One particular type of AI that's gaining traction is generative AI (think ChatGPT). Even corporations like PricewaterhouseCoopers (PwC) are buying in with a recent $1 billion investment in generative AI, where the company aims to enhance its service offerings across multiple industries, including real estate. Let’s dive into some predictions on how this can impact our industry.
Prediction #1: Use it or get left behind.
If you use Amazon’s Alexa or Apple’s Siri, chances are that you’ll use AI at some point too. It just happens to be much more powerful. For mundane tasks, ChatGPT is a great platform that takes initiatives further and faster to the finish line than what one can sometimes do alone. By incorporating AI into operations, professionals can gain a competitive advantage over their peers who are slow to adopt. As the technology continues to evolve, those who fail to use it may find themselves at a disadvantage with a potentially steep learning curve to catch up.
Prediction #2: Increasing need for data storage.
As AI takes center stage, data centers are quietly emerging as a vital component, providing the necessary infrastructure to support this digital revolution. While not the focal point of this technological shift, data centers are essential for providing the computing power and infrastructure needed to sustain AI's growing influence. With the increasing demand for digital services, data centers are becoming a significant, albeit understated, component of the real estate ecosystem. Bottom line, as more content increases expect more data center growth.
Prediction #3: Making real estate decisions backed by data analytics, not gut feel.
Giving ChatGPT to the public for free has produced some extraordinary results and FAST. We’re already seeing AI reshape art, music, video, and especially the way software code is used. Commercial real estate tends to be a laggard, but like other industries, it will be changed.
Apis is implementing AI in several areas. For portfolio clients with multiple locations, we are tracking optimal lease terms and critical dates with vast data sources. Office, retail and industrial users need advanced analytics and data before, during and after the site selection process. For developers, we're conducting market research to validate target demographics for future projects.
With no signs of stopping anytime soon (although Elon and others want a pause and the Godfather of AI has voiced his concerns), the full potential of AI is yet to be discovered. As a technology-forward company, Apis recognizes the importance of leveraging AI to provide the best service possible to our clients. We invite you to share your experiences with AI in real estate and stay tuned as we continue to explore the full potential of AI in commercial real estate.
I’m curious to hear how you have already used/thinking about using these technologies. Hit me up at trey@apisrealestate.com!
About the Author
Trey Tubbs has spent over a decade at the intersection of commercial real estate and technology at the world’s largest commercial real estate service company (CBRE). He’s had the privilege of sitting in a front-row seat leading innovation by developing groundbreaking technologies and business models. He has a passion for leveraging technology platforms and data analytics and now leverages this expertise in commercial real estate services providing differentiated value to his clients.
Note: This picture of me was generated 100% by AI.