To be a smart investor in commercial real estate (CRE), you need more than good investments and market knowledge. You also need to embrace the latest technology.

As artificial intelligence (AI) changes the industry, its effects on operations, decision-making, and planning are very important. A study by McKinsey Global Institute predicts that AI could add about $15.7 trillion to the economy by 2030. Businesses that adopt AI early are expected to gain a larger share of these economic benefits.

This change is not just about staying ahead of competitors. It is about using AI to find new chances, improve efficiency, and accurately predict market trends.

For CRE investors, particularly, the stakes are high. The CRE Innovation Report reveals that nearly half of commercial real estate leaders believe AI can enhance operations. They also think it can help save money. Furthermore, 43% of these executives anticipate AI will have a highly disruptive impact on the industry.

In this article, you will learn about the top five AI tools. Every smart investor should use these tools in their work. This will help make your approach to CRE investing current and ready for future changes.

AI has the power to change the CRE landscape. Staying informed and flexible is now key to investment success.

1. Generative Video in Commercial Real Estate

Generative video technology, driven by AI, is changing how we visualize properties in commercial real estate. It offers new ways to create high-definition virtual tours, model properties, and assess how space is used.

This technology uses AI to create realistic video content. It allows buyers, tenants, and investors to explore properties in detail. They can do this without needing to visit the site in person.

Virtual Tours

AI-generated videos have transformed the way we experience property listings through the creation of dynamic virtual tours. These immersive tours give a full view of the property. They show the space, layout, and design in stunning high definition.

According to a recent Realtor.com statistics report, listings featuring virtual tours garner up to 87% more views compared to those without. Furthermore, the report indicates that 54% of buyers are likely to bypass listings lacking virtual tour options.

Real estate agents have turned to platforms such as Zillow, Animant, Anax for property searches. Zillow has now expanded its repertoire by introducing the innovative 3D Tours Generator, specifically tailored for interior design showcases. This tool shows the latest AI real estate solutions. It makes the workflow easier and helps promote and sell properties.

The 3D generator harnesses the power of AI to create detailed virtual tours, providing an invaluable asset to real estate businesses. Its efficiency shines particularly in the commercial real estate sector, where investors require quick and cost-effective virtual tours of expansive properties. This tool not only meets the demand for speed and affordability but also delivers a comprehensive visual experience that can influence investment decisions.

Property Modeling

According to a report by Goldman Sachs, the real estate VR market is set to skyrocket to $2.6 billion by 2025.a

This projection emphasizes the significant investment and interest in technology that enhances property visualization, including generative video for property modeling. These tools help with marketing and also with planning and development. They provide a cost-effective way to explore and show property changes.

Space Utilization Assessment

Assessing space utilization is another area where generative video technology shines. It can simulate different layouts and usage scenarios, helping property managers and investors optimize space efficiency. Generative video helps change office layouts for better workflow. It also shows how retail spaces can be used. This tool lets us explore different setups without making physical changes.

2. AI Tools for Marketing

AI tools have become game-changers, providing investors with unprecedented capabilities to tailor content, optimize messaging, and engage with their audience in more personal and efficient ways. Leveraging artificial intelligence, businesses can analyze vast amounts of data to identify patterns and preferences, enabling hyper-personalized marketing strategies that resonate with individual consumers.

Below are examples of AI marketing tools:

Jasper.ai

For CRE investors, Jasper.ai can transform the way they create and disseminate brand-specific content. By ensuring that all messaging aligns with the investor's brand identity and directly appeals to the target audience, Jasper.ai aids in creating a consistent and compelling brand image. This can be especially valuable in:

• Developing targeted marketing campaigns for different real estate listings or investment opportunities, ensuring that the messaging resonates with potential investors or buyers.
• Creating helpful and engaging content is important. This can be for blogs, newsletters, or social media. It helps the CRE investor stand out as a leader in the industry.
• Automating content creation for market analyses, investment reports, and case studies saves time and resources. It also keeps the quality high.

Phrasee

The specialization of Phrasee in AI-generated content for email, push notifications, SMS, and social ads offers CRE investors a powerful tool for direct marketing and client engagement. By leveraging natural language processing and machine learning algorithms, Phrasee can:

• Improve email marketing campaigns for potential and current investors. Make sure messages are designed to get high open and conversion rates.
• Improve the effectiveness of push notifications and SMS campaigns for property listings or investment opportunities. This will drive more engagement and responses.
• Adjust web, app, and social ad content to attract a wider audience. This will boost the reach and impact of your marketing efforts.

Voicebooking

Voicebooking can turn written text into AI-generated voice files. This helps CRE investors by providing more content options and making it easier to access. This technology can be applied in:

• Creating audio content for property tours or investment opportunity presentations, allowing potential investors to receive information in a more engaging and convenient format.
• Developing podcasts that discuss market trends, investment strategies, or insights into the CRE industry, further establishing the investor's credibility and expertise.
• Implementing automated customer service systems or voice-guided assistance for inquiries related to properties or investments, enhancing the customer experience.

These AI marketing tools provide new ways to automate and improve content creation. They help businesses grow their marketing efforts while keeping a strong focus on personalization and brand consistency.

As AI technology keeps growing, we can expect these tools to get smarter. This will change digital marketing even more.

3. Autonomous AI Agents in Commercial Real Estate

Autonomous AI Agents are advanced, intelligent systems capable of making decisions and taking actions independently, without human oversight. They work by analyzing large amounts of data. They use machine learning and complex algorithms to find insights. They can perform tasks with a level of independence similar to human decision-making.

These agents can range from simple automations with predetermined responses to sophisticated entities capable of learning and adapting to dynamic environments, whether physical or digital. To explore how AI is shaping the broader landscape of commercial real estate, check out our earlier discussion on the future role of generative AI in CRE.

How CRE Investors Can Use Autonomous AI Agents

• AI-Agent-Driven Property Price Valuation: Autonomous AI agents excel at estimating property values by analyzing comprehensive market data, sales history, and trends. For CRE professionals, this means:
• Data-Driven Accuracy: Leveraging vast datasets, these agents can uncover patterns and insights that inform accurate valuations.
• Comparative Market Analysis (CMA): AI agents use their skills to research and compare properties. They help with property valuation and provide real-time market insights.
• Real-Time Market Monitoring: By tracking live market data, AI agents provide timely valuations that reflect current market dynamics.
• Feedback Incorporation: These agents validate their estimations by integrating feedback from real estate experts, refining their accuracy.
• AI agents can show their findings in clear and simple reports. This makes it easier for CRE professionals to make decisions.

Smart Capital Center has harnessed the power of autonomous AI agents to transform the CRE industry. Our AI-powered platform facilitates an environment where AI agents take the lead in property valuation, tapping into extensive databases to assess and predict property prices with remarkable accuracy. The agents conduct in-depth comparative market analyses, constantly monitoring the pulse of the market to deliver valuations that are both current and grounded in comprehensive data analysis.

Moreover, Smart Capital Center understands the synergy between human expertise and AI accuracy. Our platform is designed to incorporate professional feedback into the learning of AI process, ensuring that the valuations and reports generated resonate with the realities of the market and adhere to industry standards.

In practice, this means that CRE professionals equipped with Smart Capital Center tools can rely on AI for more than just raw data processing. They obtain validated market analyses and property valuations enhanced by visualizations and detailed reports.

These insights empower users to make informed decisions, secure in the knowledge that the information they're working with is not only generated through powerful computational methods but also vetted for accuracy and applicability.

By pioneering AI-driven solutions in commercial real estate, Smart Capital Center is at the forefront of industry transformation. Our commitment to innovation was recently recognized when we were named a 2024 Influencer in CRE Technology, further underscoring our role in shaping the future of AI in CRE investment and valuation.

4. Natural Language Models and Interfaces in CRE

The intersection of commercial real estate and artificial intelligence (AI) is rapidly becoming a hotbed for innovation, particularly with advancements in natural language models and interfaces. One standout example of this technology is GPT-4 (and future versions) developed by OpenAI, which is transforming how CRE professionals interact with data and clients.

GPT-4, the latest iteration of the Generative Pre-trained Transformer models, offers a leap forward in natural language understanding and generation. With its enhanced ability to comprehend context, reason through complex queries, and exhibit a degree of creativity, GPT-4 is an invaluable tool for CRE investors and professionals. It can interpret and draft legal documents, analyze and summarize market reports, and engage with potential clients through written communication with unprecedented sophistication.

GPT-4 and interfaces such as ChatGPT can be transformative, enhancing both the efficiency and quality of professional tasks.

For CRE professionals, the ability to quickly digest extensive documentation is crucial.

GPT and other advanced natural language models are adept at summarizing and analyzing a vast array of written materials, including dense web pages, lengthy PDFs, and various scanned documents. This can dramatically reduce the time spent by investors and analysts in reviewing property portfolios, market analyses, and due diligence reports. Such AI-driven summarization ensures that key information is not overlooked and that CRE professionals can make well-informed decisions faster.

Another area where natural language models excel is in the generation of new documents. For instance, investors can assist in drafting preliminary investment memos, market reports, and even detailed proposals for property development.

These AI models give a structured draft to start with. This helps CRE professionals focus on improving the strategy and content instead of starting from the beginning. This is especially helpful for smaller companies or individual investors. They may not have the same resources as larger firms.

The Limitation

While natural language models offer remarkable capabilities in generating and summarizing content for commercial real estate professionals, they are not without their limitations.

A significant constraint is the potential for inaccuracies in the outputs. For example, when working with complex financial documents, the AI might misread numbers or subtotals. This can lead to incorrect conclusions.

This limitation highlights the necessity of a meticulous review process, particularly when accuracy is important in CRE transactions and analysis.

Smart Capital Center recognizes this limitation and has positioned itself at the forefront by integrating GPT-4 within its services. By doing so, Smart Capital Center offers accurate and interactive analyses that go beyond static reports.

Smart Capital provides more dynamic analytics, enabling users to craft their real-time, data-driven insights. This integration balances the power of GPT-4 with the accuracy of Smart Capital Center's platform. It ensures that both aspects work well together.

The result is a better user experience. CRE professionals can trust AI to handle large data tasks. They can also be sure that the final output is checked for accuracy.

This approach makes sure that the insights and materials created are quick, efficient, and reliable. They are also tailored to meet the unique needs of the users.

5. AI Copilots in Commercial Real Estate

AI copilots in commercial real estate represent the next step in decision-support technology.

Functioning akin to having an expert by your side, these advanced AI systems are capable of accessing data and providing insights based on user-directed queries. The idea is to augment human expertise, not replace it, ensuring that the intuitive and strategic prowess of CRE professionals is complemented by data-driven support from AI.

Financial Modeling and Intelligent Insights

AI copilots transform the financial modeling process by minimizing the guesswork involved in creating forecasts and projections. Traditionally financial analysts rely on a blend of historical data and assumptions to predict future financial performance. With an AI copilot, these ideas are checked against large amounts of market data. This gives a clearer view of their realism and possible results.

Key applications include:

• Data-Driven Projections: AI copilots can quickly process extensive datasets to evaluate the validity of financial assumptions, delivering stronger foundation for financial models.
• Customizable Inputs: They allow for adjustable parameters, accommodating the unique variables pertinent to each organization or investment scenario.
• Improved Accuracy: AI copilots use machine learning to create more accurate financial forecasts that fit the organization's needs.

Predictive Analytics in CRE

Predictive analytics is another area where AI copilots are proving invaluable. A Deloitte report says that CRE investors face big financial risks. These include geographic market risk, tenant risk, and finance or interest rate risk. These risks can affect growth and profits.

AI copilots can analyze a lot of real estate data. Some of this data is public, while some can be bought. They help predict future market trends and investment opportunities. This predictive power can:

• Identify Profitable Investment Areas: AI analyzes current market performance and uses machine learning to pinpoint locations likely to yield high returns over the next decade.
• Reduce Investment Risks: With the ability to process and analyze large datasets, AI copilots offer more accurate assumptions, lowering the risk associated with investments.

At Smart Capital Center, we embrace the concept of AI as a copilot for investors. Our platform integrates AI copilots to assist in financial modeling and predictive analytics, empowering users with tools that extend beyond traditional analysis methods.

• Streamlined Investment Processes: By inputting specific investment criteria, users can leverage AI to identify and evaluate potential investment opportunities quickly.
• Real-Time Data Analysis: Our AI copilots are always updated with the latest market data. This ensures users have access to the most current insights for their analyses.
• Reduced Margin of Error: AI is very accurate. This lowers the chance of investment mistakes. It gives more confidence in decision-making.

Let Smart Capital Center guide you through this transformation. Book a demo today.