The incorporation of technology in the commercial real estate (CRE) industry has been revolutionizing the way properties are bought, sold, and managed, making the process more efficient and accessible. Those who are on the front line will benefit the most.
Artificial Intelligence (AI) and blockchain technology, a shared ledger that facilitates the recording of transactions and asset tracking, are rapidly transforming every industry, including the CRE industry. Gone are the days when commercial real estate portfolio managers had to rely on manual processes and guesswork to make decisions about their properties. Thanks to the power of AI and blockchain, portfolio managers can now manage and make use of previously unimaginable amounts of data. Real estate investors now have access to tools that allow them to analyze the investment potential of entire markets and specific properties within minutes.
AI can be used to automate routine tasks and processes. For example, it can be used to track the status of properties within a portfolio, monitoring for potential maintenance issues and scheduling repairs and upgrades as needed. Meanwhile, blockchain can be used to create a distributed database of property ownership and transaction records, providing a transparent and immutable record of all transactions. This not only helps to ensure that properties are well-maintained and in good condition, but it can also help to reduce the workload for portfolio managers, freeing them up to focus on more strategic tasks.
It better equips portfolio managers with the tools they need to make decisions. For example, AI can be used to analyze market trends and other factors to identify properties that may be underperforming, or to help identify opportunities for acquisition or disposal. This can help portfolio managers to make more informed decisions about how to manage and grow their portfolios, potentially leading to increased profitability and success.
Overall, the use of AI and blockchain to optimize the management and maintenance of commercial real estate portfolios is an exciting development, and one that is sure to have a major impact on the industry. As these technologies continue to advance, we can expect to see even more applications of AI and blockchain in the world of commercial real estate, helping to drive further improvements in efficiency, decision-making, and profitability. AI cannot replace the need for human relationships (yet), but leaders in CRE should stay up to date on the rapid improvements of property tech, or risk losing competitiveness.
This article appeared in our company newsletter in June of 2023. Please click here to download the entire newsletter.