Commercial Real Estate Firms Seeing Higher Profits and Lower Expenses Possible with ChatGPT and other Generative AI Tools

Commercial real estate professionals should embrace artificial intelligence's (AI) generative capabilities to improve the relationship-focused industry. 

Rather than fearing displacement from AI's power, the industry can harness its potential to improve productivity, cut operational costs and help discover and execute deals. By using large language models like the latest ChatGPT versions, commercial real estate teams can take advantage of advanced communications and analytics capabilities. They can leverage AI tools to automate report generation and marketing campaigns, analyze various data points and build better prospect lists. 

Automating Marketing And Improving Customer Service

AI can automate and streamline many commercial real estate marketing functions. A tool like ChatGPT can build targeted social media ads, listing copy and blog articles. It can analyze market trends and keywords to expand a company's reach to attract more clients, establish its credentials as a market leader and build a strong brand. Commercial real estate brokers should consider hiring marketing professionals with AI experience who know how to create prompts and commands that will produce results. 

Commercial real estate companies can also use AI-powered chatbots to manage customer inquiries with contextual answers and handle property viewings, calendars and other tasks. The technology can integrate with email services to optimize personalized email messages and send them in real-time. Automating some of these tasks gives brokers more time to build client relationships and close deals. 

One startup, Jurny, offers an AI-powered property management solution that improves short-term rental operations. The startup even partnered with Airbnb to help roll-out its technology. It connects multiple capabilities into a single platform, giving short-term rental owners an AI-powered property management system (PMS). It integrates with booking platforms, arranges times with cleaning firms, helps owners manage reviews, streamlines customer service, and includes dynamic pricing capabilities within a single dashboard. The company is currently raising on Wefunder, allowing anyone to invest in the startup for a limited time. 

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Enhancing Due Diligence And Demographic Research

The due diligence phase is a critical aspect of commercial real estate transactions that involves extensive research and data analysis. AI expedites due diligence by providing real-time insights and metrics, reducing the time required for research and analysis. It helps brokers predict market trends and assess potential development sites based on demographic data, facilitating more informed decisions. 

AI algorithms can process information in new ways, enabling them to spot upcoming geographic areas or property types that are likely to outperform in a given time frame. Commercial real estate teams can use AI to make real-time informed decisions to avoid most risks and seize opportunities. They can also use AI in conjunction with other tools to improve the classification and storage of produced data, giving them access to libraries of market research. 

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Improving Loan And Financial Modeling

AI-powered machines can quickly crunch numbers and pull together insights from multiple data sources. This allows commercial real estate investors to assess deals more efficiently. Underwriters and lenders can also use AI to predict potential returns to optimize their capital outlays. 

AI enables seamless classification, storage and retrieval of historical data. It can provide stakeholders with valuable insights for future decision-making as it highlights past errors and missed opportunities. 

After purchasing a property, commercial real estate companies can leverage AI to improve energy efficiency and sustainability. AI tools can pull data from smart home systems and recommend ways to reduce energy and other operational costs for sustainability and cost goals. 

Early commercial real estate AI adopters stand to gain a competitive advantage by implementing AI tools to streamline operations, enhance customer service and optimize data analytics. While some industry roles may evolve or dissipate with improved efficiency, AI will create new opportunities in tech management and data analysis.

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