AI and commercial real estate

Following the Government’s AI action plan which is a plan to ensure that Britain step ups; “to shape the AI revolution rather than wait to see how it shapes us” artificial Intelligence (AI) is very much at the forefront of the minds of everyone in real estate.

AI is already being used by savvy property people to cut costs and speed up many processes in their property’s lifecycles.

Some key examples of where AI is already being used are:

Valuations

One of the strengths of AI is the ability to analyse vast quantities of information quickly. One area this is providing very helpful with is use of an Automated Valuation Model (AVMs) to help assess the value of a property.

Visualisation

It is often difficult to visualise how an empty office or completed development, for example, might look once fit out works or development have been completed. In the past developers, buyers, landlords and tenants have turned to architects to produce plans. However, it is now possible for landlords and agents to use AI to deliver personalised virtual tours based on planners, purchasers or tenant-specific requirements. Using AI to generate multiple layouts and configurations and with the input of basic information create interactive 3D tours.

Best use of space

Whilst AI can be used to help developers, buyers, landlords and tenants visualise how a space can be used, it can be taken a step further. It can help suggest optimal layouts according to need, workspace requirements, office attendance and a variety of other aspects which can be based on the individual developments, buildings or companies.

Energy use

With the cost of electricity on the rise, the use of AI can help to control and monitor those costs.

AI algorithms can analyse data from sensors to optimise energy usage, building temperatures and enhance occupant comfort. This is especially helpful for landlords and tenants when you consider that lots of companies allow flexible working, and offices may not be at 100% capacity all of the time. Both landlords and tenants should investigate what AI and technology is available to assist with this.

Project management and predication modelling

AI project management systems can create optimum schedules and minimise delays.  Predictive model can for example help agents identify potential buyers for a property, or a property manager identify properties that need maintenance.

There is more and more AI being developed to help the world of real estate. Many commenters believe that adopting AI could become a key competitive differentiator in the market.

Also, with the Government’s ambitions the world of real estate will arguably be key to facilitating the key infrastructure required to drive the Government’s AI Opportunities Action Plan. If you have any questions, please get in touch.