AI Is A Bicycle For Our CRE Minds
Learn how to ride or get left behind
Dylan Goren Noah Coughlin Shree Kulkarni Shaw C. Jason Adams Darren A. Wilson Bonnie Burgett Nadine Ezzie Sean Kelly-Rand Leah Azizian
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Let's start with, I'm not an expert in artificial intelligence (AI). I still find it crucial to explore this transformative technology. In real estate, many people seem eager to assume that AI will eventually handle everything for us, even making complex decisions. For example, will it negotiate leases without human intervention? Some say yes, some say never. However, I believe decision making is not AI’s highest and best use.
AI is a tool—a highly advanced one—designed and utilized by humans. Just as we’ve developed tools over millennia, AI is simply the next iteration, enabling us to achieve our goals more efficiently.
Steve Jobs once famously described the personal computer as “the most remarkable tool that we've ever come up with, and it's the equivalent of a bicycle for our minds.”
Like the computer, AI won’t replace us—it’s here to augment our capabilities. It’s a high-efficiency tool that enables us to progress further and faster than ever before.
Harnessing AI in Real Estate
With AI’s potential in mind, the onus is on us to retool and retrain ourselves to effectively use this technology to create, design, and imagine better outcomes in our work. In commercial real estate (CRE), firms are already leveraging AI in meaningful ways.
Below are ways CRE firms are using AI driven software in their processes and the actual software they are using.
Leasing: Analyzing, summarizing, and drafting lease agreements.
Feasibility: Analyzing zoning ordinances and building codes for new projects.
Investments:
Macro-Level: Using AI to analyze large datasets, identifying investment geographies, product types, and portfolio optimization strategies.
Micro-Level: Evaluating individual deals by comparing data sets such as expenses, market comps, and economic cycle timings.
Relationship Management: Managing investor relations and contacts at scale by analyzing news, geography, and risk/reward data.
Marketing: Automating marketing collateral, generating social media and newsletter content, and optimizing website SEO.
领英推荐
This is a dynamic list that keeps changing and growing. If you use an AI-driven software package that should be on the list, let me know.
Navigating the Gen-AI Era
As we move deeper into this post-Internet, Gen-AI era, the question becomes: how do we navigate AI effectively? These tools are disruptive, empowering small businesses to make an impact in markets traditionally dominated by larger players. At the same time, big companies are developing proprietary models with internal datasets that could further widen the gap.
For an emerging sponsor, it’s essential to ask: How can I advance my position in this new AI-driven world? To stay competitive, it’s important to leverage your own internal datasets, build systems without excessive costs, and streamline processes for acquisitions, analysis, and marketing. Always be on the lookout for “low-hanging fruit” that can provide a competitive edge.
Take Action – Stay Relevant
One simple step could be taking a short course on AI or learning about prompt engineering. You could even try building your own custom GPT model. The key is to do something—anything—because standing still is no longer an option.
“AI is going to change the world in ways we can't even imagine yet. It will improve health, education, and help solve some of the world's hardest problems.” - Bill Gates
It’s an optimistic outlook, but one that demands we adapt quickly.
However, not everyone shares this enthusiasm.
“AI is a fundamental risk to the existence of human civilization.” - Elon Musk
His words serve as a reminder that we must not only harness AI’s potential but also be aware of its challenges.
If you’re in your 30’s, 40’s and 50’s, remember younger generations are learning these systems natively. At a minimum to remain relevant in our industry, your ability to understand the implications of AI is crucial—not only for your personal growth but for effectively managing the young talent rising through the ranks.
It is important for everyone to learn and explore how you can use AI to improve your workflows. You got this!
Cheers, John
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I help faith driven leaders invest with purpose
4 个月This is good. There is so much fear and scarcity thinking around AI (with some good reasons) but whether we want it or not, it is moving into all areas of our lives. Thanks for the links to ai application within CRE. I am excited to check them out.
Director of Sales
4 个月John T Pugh ?? Lev is doing a lot with AI to streamline the transaction process for sponsors from pipeline management, building deal packages, connecting with the most competitive lenders, to overall deal management. Particularly on the deal package front, historically it takes sponsors hours, days, even sometimes weeks to put together materials to represent their deals to lenders. Within 5 minutes our AI can parse any deal document(s), in any format, and create a beautifully designed debt package! https://vimeo.com/956115488
Business Development | Gryps
4 个月John T Pugh ?? What about adding Rabbet to your #CREAI list for its AI driven Development management?
I help real estate investors realise long-term value through optimised development strategies | $4.5BN Real Estate Assets Delivered | $600M+ Value Unlocked | Founder at Benigni | Past: Brookfield, Lendlease
4 个月This is great. AI is amazing a great opportunity for every single Real estate professional to work smarter and get better results. I think it's important to try and reduce the noise of all the different apps on the market and stick to a good few, learn how to use them well. I believe that ChatGPT Plus alone is able to handle most of the tasks, either via good prompts or Custom GPTs.
Innovation Strategist for the Built World | Exploring the Intersection of Tech, CRE and Human Experience | NEREJ’s 2024 Ones to Watch
5 个月1. John this is a great write-up for anyone in CRE wanting to learn and get started with AI! 2. Thank you so much for the shout out for Building Tomorrow! We're so proud to be part of Boston Built Week to bringing together Boston's CRE and AEC thought leaders to have a real, unfiltered, and creative conversation on what it will mean to build in the age of AI. We're not just talking buildings but also communities and cultures.