With office space remaining vacant and real estate markets in flux, artificial intelligence is transforming the way buildings are managed and how investors predict trends.
Observers say AI will improve the management of commercial real estate by monitoring office usage and predicting maintenance needs. Provides a more efficient approach to space management and cost optimization.
Frank Cartwright, head of social housing investments at Yield Investing, said: “AI is fundamentally changing the way we approach space use, especially as hybrid working reduces demand for traditional office space.” told PYMNTS. “The key for CRE investors is to adapt, and AI will allow us to reimagine these areas in new ways.”
Innovation in space utilization
Transforming real estate with AI is not just about repurposing office areas. Butlr, a spinout from MIT, combines AI and body temperature sensing technology to provide insights into office usage. Butlr CEO Honghao Deng told PYMNTS that the company’s sensors capture data on foot traffic, occupancy, and even subtle movements such as the unwinding of a chair. Companies like Verizon, Microsoft, and Netflix use these sensors to make office layout and resource allocation decisions, and to determine whether they’re paying too much to clean underused areas. .
“When each person squats in a conference room, energy costs increase and it indicates that the office does not have an appropriate ratio of private and public meeting space,” Deng Xiaoping said.
The impact of AI in commercial real estate goes beyond just optimizing office layouts. Karla Hinson, vice president of PropTech company MRI Software, pointed to two applications: lease abstraction and facilities management.
“Lease abstraction tools gained traction during the pandemic when companies needed to quickly identify force majeure clauses,” Hinson told PYMNTS.
Today, AI streamlines document analysis and saves time on tedious legal reviews. On the equipment side, AI predicts equipment failures and optimizes maintenance.
“This predictive ability is essential for expensive systems like HVAC units,” Hinson says. “AI can help predict asset failures and manage maintenance costs.”
Cartwright said Yield Investing leverages AI to monitor building systems to ensure efficient energy use and cost savings, particularly in sustainability efforts. AI-powered analysis of energy patterns can also support the conversion of underutilized office space into flexible housing and mixed-use developments.
AI-powered planning
AI’s strength in analyzing datasets makes it valuable for risk mitigation and strategic planning. Brittany Hart, CEO of Salesforce consulting firm Platinum Cubed, told PYMNTS that AI can help companies overcome market challenges by evaluating different scenarios, such as fluctuating demand and underutilized real estate. He said it was helpful.
When it comes to space optimization, Hart said AI-powered tools can help reimagine office layouts for hybrid work, providing flexible workstations and shared collaboration areas.
“AI allows real estate operators to make strategic decisions based on data-driven predictions of market trends and tenant activity,” she said.
AI capabilities are particularly beneficial in complex regulatory environments such as public housing.
“AI automates lease abstraction and compliance checks, ensuring accuracy and reducing administrative burden,” Cartwright said.
He added that this automation will allow Yield Investing to scale social housing projects more efficiently.
While AI brings benefits to workspace monitoring, it also naturally raises privacy concerns. Deng addressed this directly, explaining that Butlr’s sensors are designed not to capture personally identifiable information.
“Guaranteed anonymity fosters a more collegial work environment,” he said.
AI also improves services such as room reservations and space utilization, with systems that recommend optimal seating or alert businesses to inefficient usage patterns.
“AI adoption will increase as organizations and their IT teams learn more about use cases,” Hinson says. “The ‘fear’ of AI is waning as people become accustomed to using it in their personal lives, but we have reached a critical juncture as technology catches up with the concept.”
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More information: Artificial Intelligence, Automation, Brittany Hart, Butlr, Carla Hinson, Frank Cartwright, GenAI, Honghao Deng, Innovation, MRI Software, News, Platinum Cube, Privacy, PYMNTS News, Real Estate, Technology, Yield Investing
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