Artificial intelligence (AI) and its impact on commercial real estate have been gaining attention for some time now. Machine learning has enabled companies to collect and analyze large amounts of data in order to identify trends and patterns, which can be used to determine sales/lease prices, as well as whether a particular site is suitable for ground-up construction. Generative AI – such as ChatGPT, Bard, DALL-E or DeepMind – could potentially take the CRE sector even further.
A recent survey by JLL revealed that respondents expected AI and generative AI technologies would have the greatest impact on real estate over the next three years; however they also indicated that they had little understanding of these technologies compared with other innovations like blockchain or virtual reality.
JLL suggested that both forms of AI will affect labor markets – while productivity may increase due to automation there is potential for job losses – but this isn’t necessarily bad news according an MIT economist David Autor who found 85% employment growth in US over past 8 decades was due new positions created by technology advances . In terms of CRE specifically , JLL anticipates impacts across geolocation , asset demand , revenue & investment plus design/space functions .
Occupiers are likely those already involved with technology & development but it’s worth noting medical / healthcare investments were highest followed by data management / cloud computing & fintech . This means more infrastructure requirements including colocation centers plus hyperscale + edge data centers all needing high speed connectivity networks power supply etc .
Finally proptech has moved from sidelines into mainstream usage offering solutions from investment mgmt through design+construction facilities operations portfolio mgmt etc leading way towards integration w/AI activities like document sorting standardization scheduling leasing matchmaking recommendations energy management sustainability property mgmt etc although generative applications still early stages when it comes CRE use cases so far include energy efficiency property management related areas
