Of office spaces sit empty and property markets in motion, artificial intelligence is transforming how buildings are managed and how investors predict trends.
Observers say AI improves commercial real estate management by monitoring office usage and predicting maintenance requirements. It offers more efficient approaches to space management and cost optimization.
“AI is fundamentally changing the way we approach space use, especially as hybrid work reduces demand for traditional office spaces,” Frank Cartwrighthead of investments in social housing Investing proceedstold PYMNTS. “For CRE investors, adaptation is key, and AI allows us to reimagine these spaces in new ways.”
Innovative use of space
The AI real estate transformation goes beyond repurposing office areas. Bee Butlra spin-out from MIT, AI in combination with body heat sensor technology provides insight into office use. The company’s sensors capture data on foot traffic, occupancy and even subtle movements like turning back chairs, Butlr CEO said Honghao Deng told PYMNTS. Companies like it Verizon, Microsoft And Netflix Use these sensors to determine office layout and resource allocation, and determine whether they are paying too much to clean underutilized areas.
“When individuals squat in meeting rooms, it drives up energy costs and indicates that the office does not have the right ratio of private to public meeting space,” Deng said.
The reach of AI in commercial real estate goes beyond optimizing office layouts. Carla Hinsonvice president at the company PropTech MRI softwarepointed out two applications: rent abstraction and facilities management.
“Lease abstraction tools came to prominence during the pandemic, when companies needed to establish themselves force majeur clauses quickly,” Hinson told PYMNTS.
Today, AI streamlines document analysis, saving time on tedious legal reviews. On the facilities side, AI anticipates equipment failures and optimizes maintenance.
“This predictive ability is essential for expensive systems such as HVAC units,” Hinson said. “AI helps predict asset failures and manage maintenance costs.”
Cartwright said Yield Investing uses AI to monitor building systems, ensure energy efficiency and reduce costs, especially in sustainability efforts. AI’s analysis of energy patterns also supports the transformation of underutilized office spaces into flexible housing or mixed-use developments.
Planning with AI
AI’s power in analyzing data sets makes it valuable for risk mitigation and strategic planning. Brittany HartCEO of consultancy firm Salesforce Platinum in cubestold PYMNTS that AI helps companies deal with market challenges by assessing different scenarios, such as fluctuating demand and underutilized properties.
In space optimization, AI-driven tools are helping to reimagine office layouts for hybrid work, providing flexible workstations and shared collaboration spaces, Hart said.
“AI enables real estate operators to make strategic decisions based on data-driven predictions of market trends and tenant activity,” she says.
AI’s capabilities are especially useful in complex regulatory environments such as social housing.
“AI automates lease abstraction and compliance checks, ensuring accuracy and reducing administrative burden,” Cartwright said.
He added that this automation will enable Yield Investing to scale up social housing projects more efficiently.
While AI offers benefits in workplace monitoring, privacy concerns naturally arise. Deng addressed this head-on, explaining that Butlr’s sensors are designed not to capture any personally identifiable information.
“The guaranteed anonymity promotes a more collegial work environment,” he said.
AI also improves services such as room booking and space usage with systems that recommend optimal seating or alert companies to inefficient usage patterns.
“AI adoption will increase as organizations and their IT teams learn more about use cases,” Hinson said. “The ‘fear’ of AI is fading as people get used to using it in their personal lives, and we have reached a critical point as technology has overtaken concepts.”
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