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Six ways AI is impacting commercial real estate

Artificial Intelligence (AI) has become a key partner for real estate and has had a significant impact on the market, Realty Biz News reports. AI had transformed how the commercial real estate industry operates—improved processes, decreased human error, increased efficiency and more accurate data analysis are just a few of the benefits CRE has enjoyed from using AI.

Here are six ways AI has revolutionized the CRE industry, according to Realty Biz News:

Predictive analytics

AI systems can predict industry trends and patterns, which can help CRE owners, investors, buyers and sellers make more informed, data-driven decisions. AI tools can analyze vast amounts of data quickly, including economic factors, property features, historical sales information and more to forecast property prices and market moves. CRE industry professionals can use this data to minimize the risk associated with acquiring or selling a property and feel confident that they’re getting the best possible outcome.

Better customer experience

Customers have questions at all times of the day, but CRE professionals are not always available. AI tools make it possible that inquiries can be addressed regardless of what day or time it is. Chatbots can assist in answering questions, scheduling appointments and offering personalized suggestions, 24 hours a day, seven days a week.

The technology helps reduce response times and customers don’t have to wait until business hours to begin to have their issue addressed. Additionally, AI systems can make the property search progress easier, according to Realty Biz News. Platforms can make suggestions based on a prospective buyer or renters’ search history and preferences, minimizing the time in the search process.

Tour properties from anywhere

AI has helped make geography irrelevant when it comes to touring a property. Potential buyers can view a building from their home if they choose, thanks to AI-powered platforms. Having access to these 360-degree virtual property tours decrease the amount of money and time people typically spend to visit a site. Buyers can also narrow down their choices before they start making in-person visits.

More efficient property management

Property managers have a long list of tasks to accomplish on any given day. AI-powered tools can help cut their “to-do” lists down by automating tasks such as collecting rent, receiving maintenance requests and managing lease renewals. When AI takes care of these routine tasks, property managers can put their attention toward more pressing issues that only a human can handle.

AI can also help property managers deal with building repairs and maintenance proactively. The technology can predict when the property is going to need maintenance, based on similar buildings’ data and historical maintenance records, Realty Biz new reports. This information helps property managers get in front of these repairs, which can help save money and keep tenants happy.

Accurate property valuations

Property valuations were time consuming before AI because data had to be collected and analyzed manually. The process has become much shorter, however once AI-based valuation tools, also known as Automated Valuation Models (AVMs), were introduced. AVMs use AI algorithms to analyze large amounts of data, such as property features, location, market tends and historical sales data to estimate a property’s value fast and accurately. AVMs have made the valuation process more efficient and significantly decreased the chances of human error.

Increased marketing

Typically, the more targeted marketing is, the more effective it will be. AI algorithms help CRE companies customize their marketing content by analyzing customer behavior and preferences. The more personalized marketing efforts improve lead generation, conversion rates and in the end, sales.

AI not only can create these targeted marketing campaigns, but also repeat them, allowing CRE professionals to put their time and attention on other tasks.

“The impact of AI on the real estate industry is profound and multi-faceted,” Realty New Biz contributor Ben Shepardson said. “By automating routine tasks, providing deeper and more accurate market insights, improving customer experience, and enhancing property management, AI is ushering in a new era in the real estate market.”

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