Technological developments in commercial real estate are offering a dizzying range of operational benefits for investors willing to take the plunge, says Rob Teel, president of global solutions at Yardi.
Automation and artificial intelligence solutions are being touted as the future of commercial real estate. From improving productivity and slashing operational costs, to freeing up more time for human-led creativity, a range of innovative tools and packages promise to disrupt the asset class in the coming decade.
AI is undoubtably in the first wave of adoption, and despite critics pointing to potential job insecurity, an increasing number of firms are looking to the technology as a key differentiator to stand out against the crowd. Rob Teel discusses the main factors driving adoption and future growth.
“Almost all our clients have either internal or skunkworks projects underway – with third parties – to test the capabilities of AI,” he said.
“ChatGPT made a huge impact last year and vendors are now trying to figure out how they can monetize AI and what future budgets may look like.
“Firms are experimenting, but it is likely too early to expect much budgeting just yet. I think it will probably be 2024, or even 2025, before firms formally start to do so.”
Mr Teel said AI-aided digital assistance is set to grow substantially over the coming years.
“My bet is that enterprise-ready AI in the future will be embedded into each of our modules in a similar way: across accounting, performance management, fundraising and investor portals,” he said.
Over the last three years, multifamily has embraced chatbots to help with prospect flow, Mr Teel said.
“The technology is valuable, particularly when leasing agents are not available and customers have questions,” he said.
“Chatbots can also be applied to commercial properties. For example, a customer may have a leaky tap, or an investor might wish to call with questions about their returns over a weekend.”
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