How to Implement AI in Commercial Real Estate?

The real estate industry has always remained notorious for being resistant to technological-based innovations. There are many reasons for this resistance, but the foremost is the very nature of AI in commercial real estate applications. The basic requirement of such an application is data, and collecting such data is often quite expensive. An AI commercial real estate application is only as powerful as the data used to train its machine learning model.

Therefore, the implementation process of AI in commercial real estate is considered more sophisticated than that of other industries. This post will explain the implementation process for various commercial properties.

Use Cases and Benefits of AI Transforming Commercial Real Estate

To understand the sophistication of the implementation process, it is important to evaluate the various use cases of AI in the industry and their respective benefits.  

Property Management Software 

Managing a commercial property is one of the most complex, time- and resource-consuming tasks. The process must combine regulatory compliance and business goals to complete the procedures effectively. Traditional property management software does not meet the mark, especially in today’s competitive era. However, companies can automatically evaluate and complete various legal documents through AI-based property management software development. AI will also bring more efficiency to processes like accounts management, lease cycle management, and tracking all the required documents. 

Market Analysis

Market analysis is important for commercial real estate businesses to get a competitive edge. Before deciding the price or making an offering to a tenant or lease client, the organization needs to understand the market conditions. Manual analysis of all the variables involved can quickly make the task too complex and eventually more tedious than the results they could offer. However, commercial real estate AI software can quickly analyze all the independent and contributing factors as soon as the data is entered into the system. They can then automate the market research and analysis for improved accuracy and efficiency of the process. 

Financial Modeling

AI development services can easily automate manual processes like data extraction and database entry for operations like financial modeling. From web-based sources to research papers, surveys, the company’s legacy data, and information from public databases can automatically be fed into the analytics engine through AI-powered integration. With AI, the process can be made more efficient and accurate so that analysts can instead focus on real enhancements in the infrastructure to improve the property value. 

Prevent Budget Overrun

Commercial real estate construction has historically remained one of the most expensive and unpredictable processes. Most of the constructions in commercial real estate suffer from budget overruns. In fact, as per the latest McKinsey report, bigger construction projects exceed budgets by over 80% regularly. With commercial real estate AI robotics applications equipped with 3D laser imaging technologies like Lidar, the problem is being solved by various startups. Autonomous robots are used to capture real-time multi-dimensional images of the construction sites to resolve the ongoing issues quickly, saving time and resources to maintain the expenses well within the budget. 

Implementing artificial intelligence in such ways as commercial real estate software solutions helps companies achieve optimal cost savings resulting in improved profit margins. That being said, pre-built AI solutions hardly ever meet the requirements. This is why hiring AI developers and building custom AI commercial real estate software is the ideal way to advance.

How Do You Get Started with AI in Commercial Real Estate?

Indeed, the use cases of AI in real estate are many, but how does one get started with the implementation process? To begin with, organizations must start with a sufficient quantity of data. Every AI application depends on training data to make effective and data-driven decisions. As such, if the company doesn’t already have the data, equipping the properties with cameras, sensors, and other smart devices is necessary to ensure a regular flow of data to analyze and be used by the custom real estate AI software solution.

Once the hardware requirements are met for the given commercial real estate AI application, data modeling and pipelining take the front stage. Here the role of database administrators, data engineers, and data analysts becomes important.

With data requirements met, companies can invest in custom AI software development services to integrate data and hardware for real-time usage. In this stage, an Artificial Intelligence services company would be required to do the substantial work; a real estate company is only required to hire the right one. 

How are Commercial Real Estate Companies Implementing AI?

The AI real estate solutions for commercial properties can potentially define competitive success for businesses. Custom enterprise solutions for all different commercial properties can help companies achieve optimal resource utilization and cost savings with unprecedented operational efficiency. 

Implementing AI in Commercial Office Buildings

Most of the commercial real estate is composed of working spaces, including but not limited to office buildings, staff buildings in educational institutes, hotels, and every other commercial organization. As such, AI commercial real estate applications have the most scope here- 

• Utility management: Office buildings can be embedded with smart meters and sensors to prevent water and electricity wastage. In one way, they can automate the cut off the water and electricity supply as soon as they detect an anomaly suggesting leakage or failure of supply. In another, they can analyze historical data of consumption to make better business policies and hardware investments. 
• Fire: Smart detectors can offer better protection against fire accidents than traditional fire alarms. The data from sensors and cameras can also be used to feed real-time information to AI applications in real estate. This can help prevent fires in the first place, even before combustion happens. 
• Elevator maintenance: Elevators and escalators can be automatically detected if smart sensors notice any change in their benchmark functionality. A repair team can be sent to perform a diagnosis of such parts of the building before they stop functioning due to serviceable malfunctions. 
• Authorized entry: Already, technologies like biometrics have simplified the authorized access to commercial real estate properties, but Artificial Intelligence technologies like facial recognition have further improved the efficiency of such systems. 
• Security and surveillance: Surveillance Cameras can be equipped with the smart feature to detect irregular activities. Thereafter, connected cameras can be used to minimize the cases of false alarms and yet maintain security at the highest levels. 

AI Deployment in Hospitals and Clinics

Most hospitals and clinical properties are managed by trusts and donation money. As such, cost savings and efficiency of medical procedures become important. This is where AI application development for commercial real estate can help.

• Diagnostic Rooms: Custom AI healthcare solutions can be developed for hospitals offering high-level diagnoses. The real estate dealer can furnish the diagnostics spaces with integrate-able sensors. This way, the hospitals can embed real-time diagnosis with their medical software to improve the efficiency of their diagnostics processes. 
• Early detection of illnesses: AI and image recognition technologies can be used by hospital spaces to detect early signs of contagious diseases to prevent their spread. 
• Auto-check-in: Hospitals almost everywhere in the world are understaffed and under-spaced. As such, an extensive AI-based facial recognition system can result in lots of cost savings and process efficiency. Registered patients can be auto-logged in through the EHR systems, allowing medical assistance to draw medical history and help physicians expedite the Outpatient Departmental procedures to see more patients in less time but with greater accuracy of treatments.

Read More: How AI-based Computer Vision is Transforming Healthcare?

Deploying AI in Manufacturing Spaces

Smarter manufacturing spaces are known for improving productivity and, at the same time, preventing the misutilization of resources. Workers’ safety is yet another domain where custom Artificial Intelligence development is helping this commercial real estate category. 

• Equipping plants with AI-based sensors: In the manufacturing of fragile products like glass fibers, often waste and loss of production can be helped if the early signs of destruction are detected on time. With AI-based computer vision application development and smart sensors, this is easily accomplished to minimize the cases of production failures. 
• Property predictive maintenance: The nature of commercial property for manufacturing purposes makes regular repairs necessary. This can eventually become a financial burden when such repairs become too often. Similarly, wide gaps in repair timelines can also lead to part failure, resulting in prolonged downtime and production loss. Through predictive maintenance, such cases can be minimized. 
• Smart end-of-line testing: For manufacturing properties engaged in gearbox production of items like gearboxes, plant implementation, safety fixtures, and additional workers’ space are necessary to ensure proper execution of end-of-line testing. By implementing AI-enabled assistance systems, testbench operators and rework staff can improve the efficiency of the plant and maintenance of the space. 

Implementing Artificial Intelligence in Hotels Properties

Hotels and other commercial residences compose a major chunk of commercial real estate; therefore, it’s no wonder that AI commercial real estate applications find the most expression here. 

• Smart Concierge: From accepting check-ins to room management, concierge activities have lots of scope for Hotel AI applications. Already many hotels have AI-empowered robot concierges that are enhancing guest experiences through quick and personalized services. 
• Predict utility usage: Through predictive analytics, hotel properties can more accurately predict the usage of utilities like water and electricity for a given period. This way, they can make better decisions for revenue management, hotel property management, and SCR policies for environment conservation. 
• Smart event diagramming: AI for hotel properties can also be used to generate event-hosting leads through applications like event diagramming. Custom AI software can be developed for generating 3D diagrams of event spaces with décor templates, virtual walkthroughs, and more to improve conversion rates via virtual software development. 
• HVAC automation: HVAC or Heating, ventilation, and air conditioning units can automatically be set to function as soon as the AI-based solutions detect occupancy. This way, hotels can enhance their guest experience, save time on recurrent housekeeping tasks, and conserve electricity through smart usage.

Read More: Top Custom AI Real Estate Solutions that Every Business Must Have in 2023 and Beyond

Implementing AI in Brick-and-Mortar Stores

Deploying custom AI solutions in physical retail stores is one of the most rewarding experiences for businesses in the domain. Since the data collection is not an expensive process for retail stores, they have one part of the implementation already figured out. For the rest, there are already so many ready-to-use AI applications available like POS, CRM, surveillance cameras, etc., which will enable them to start their AI adoption journey without any delay. Here are the major ways brick-and-mortar stores are implementing. 

• Visual Search: One of the most advantageous and advanced applications of AI – image recognition – can help retail businesses improve their sales by empowering their customers. Through brand apps, retail stores can help customers find what they want to purchase through simple scans from their mobile cameras. They can scan various products to see their details and then compare the same on the company’s official app to make the entire purchasing process easy. 
• Smarts Cashier: Checking out from brick-and-mortar shops has always been a tedious task where customers had to wait in long queues. Through AI-enabled payment processing, customers can either pay for their orders right when picking up the product or at the exit. All the items a customer has in their cart get automatically added to their list through smart sensors to generate the invoice and facilitate quicker checkouts. 
• Inventory Management: AI has finally resolved the cases of overstocking and understocking for commercial retail stores by smart inventory management. Similar to smart payment, an AI-based inventory management system can quickly process the frequency and volume by which a product gets picked from the shelves. Eventually, this helps retailers understand the demand for the given product and maintain the inventory with better efficiency. 

Conclusion

Even though the adoption rate of new technologies has always been slow for commercial real estate, AI is a different case altogether. The easy implementation of the technology and the myriad of use cases have enabled commercial property owners to implement the technology to improve operational efficiency, process accuracy, and resource optimization. In time, we’ll see the gap between commercial real estate companies that use AI and the ones that don’t will widen. They will have a remarkable competitive edge which will help them thrive in the future while meeting customers’ expectations.

These companies can reduce operational costs, forecast market trends, and understand the best utilization of resources to make the best decisions that help them achieve both long-term and close business goals. With so many advantages available, only one consideration can impact the adoption process of the technology, lack of technical expertise and the expensive pipelining for data. However, both these challenges are nothing that a business can handle with an AI software development company as a partner.

Matellio is among such real estate AI companies that have been helping commercial real estate companies adopt the newest technologies for years. Our team of skilled developers is equipped with training and knowledge to build enterprise solutions, like hotel property management software, smart office buildings, and manufacturing plants with smart maintenance, all equipped with technologies like AI/ML, IoT, Blockchain, AR/VR, and more. All one need to do to start their journey in implementing AI in commercial real estate is filled this form with their requirements and then request a free quote and development plan. Alternatively, they can also book a consultation call for custom AI applications for their commercial property, and our experts can then discuss their opportunities, challenges, and the implementation process with them.