---
title: "3 Ways AI May Transform Commercial Real Estate : INSIGNIA Financial Services"
description: Generative AI – known by various brand names including ChatGPT, Bard, DALL-E and DeepMind – could help transform commercial real estate sector.
image: https://m.insigniafs.com/hubfs/Imported_Blog_Media/andres-garcia-duzqs13jvGc-unsplash-4.jpg
---

[Skip to content](https://m.insigniafs.com/cre-finance-insights/3-ways-ai-may-transform-commercial-real-estate#main-content)

![INSIGNIA 002B67 2023 (200X74 px) Trans](https://m.insigniafs.com/hs-fs/hubfs/INSIGNIA%20002B67%202023%20(200X74%20px)%20Trans.png?width=200&height=74&name=INSIGNIA%20002B67%202023%20(200X74%20px)%20Trans.png)

Open main navigation

Close main navigation

- [Contact us](https://insigniafs.com/contact/)

[Contact us](https://insigniafs.com/contact/)

 Jul 15, 2023 8:32:29 PM

# 3 Ways AI May Transform Commercial Real Estate

[John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli)

Share: [facebook-f icon](http://www.facebook.com/share.php?u=https://m.insigniafs.com/cre-finance-insights/3-ways-ai-may-transform-commercial-real-estate) [linkedin-in icon](http://www.linkedin.com/shareArticle?mini=true&url=https://m.insigniafs.com/cre-finance-insights/3-ways-ai-may-transform-commercial-real-estate) [Twitter icon](https://twitter.com/intent/tweet?url=https://m.insigniafs.com/cre-finance-insights/3-ways-ai-may-transform-commercial-real-estate) [envelope icon](mailto:?body=https://m.insigniafs.com/cre-finance-insights/3-ways-ai-may-transform-commercial-real-estate)

## How will AI Potentially Transform CRE?

Artificial intelligence and its impact on commercial real estate aren’t necessarily new. Machine learning has helped many companies collect and analyze vast amounts of data in an attempt to identify trends and patterns. This, in turn, has helped determine everything from sales and lease prices, to whether a particular site might be ideal for ground-up construction.

But that’s not all. Generative AI – known by various brand names including ChatGPT, Bard, DALL-E and DeepMind – could help move the commercial real estate sector forward. A recent article by JLL pointed out a couple of things:

1) Respondents to JLL’s 2023 Global Real Estate Technology survey said that “AI and generative AI were ranked among the top three technologies that were expected to have the greatest impact on real estate over the next three years . . .”

2) The same respondents indicated “the least understanding of AI and generative AI,” especially relative to other technologies like blockchain, robotics and virtual reality

The JLL article went on to say that both AI and generative AI would have an impact on CRE in the following ways.

**Eye on Labor**

Many regard AI as a “good-news, bad-news” scenario. The good news is that the technology will boost productivity. The bad news? People could be out of a job. Yet even with that, the JLL article, [in quoting a Goldman Sachs study authored by MIT economist David Autor](https://www.goldmansachs.com/intelligence/pages/generative-ai-could-raise-global-gdp-by-7-percent.html), pointed out that more than 85% of U.S. employment growth over the past eight decades is due to new job positions resulting from technology.

In the area of commercial real estate, JLL anticipates that AI could have a likely impact on areas like geolocation, asset demand, new assets and product types, revenue and investment and design/space functions.

**Eye on Occupiers**

It’s probably a given that companies already involved in technology and AI – application development, model hubs and so-on – will need more space for development. But before stereotyping this tenant type, JLL pointed out that the AI focus area with the [highest investment was medical and healthcare](https://aiindex.stanford.edu/report/). This was followed by data management, cloud computing and fintech.

All of this requires new infrastructure as well as increasing space. Generative AI requires “vast computing power and extensive resources,” said the JLL experts. Training also requires computer hardware, high-speed connectivity networks, power supply and data storage. All of this could lead to an increase in certain types of structures, including colocation, hyperscale and edge data centers.

**Eye on Proptech**

Over the past several years, property technology – proptech – has moved from the sidelines to mainstream usage. “There are now technological solutions for almost every aspect of real estate functions,” noted JLL. These include investment management, design and construction, facilities operations and portfolio management.

This has led to a foundation for AI integration. Real estate AI activities include document sorting and data standardization, construction and capital costs scheduling and leasing/investment “matchmaking” recommendations.

But generative AI applications are still in the early stages when it comes to CRE. Still, some of the early movers in this area are finding that generative AI has been useful in helping with energy management and sustainability and property management.

Article originally appeared in Connect CRE. Author: Amy Wolff Sorter

[CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [CREF](https://m.insigniafs.com/cre-finance-insights/tag/cref), [commercial real estate](https://m.insigniafs.com/cre-finance-insights/tag/commercial-real-estate)

## Related posts

[![](https://m.insigniafs.com/hs-fs/hubfs/Imported_Blog_Media/5efdf36d33deec95576777d8_inospace-industrial-workspace.jpg?height=200&name=5efdf36d33deec95576777d8_inospace-industrial-workspace.jpg)](https://m.insigniafs.com/cre-finance-insights/sba-loans-for-commercial-real-estate)

[CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [development](https://m.insigniafs.com/cre-finance-insights/tag/development), [construction](https://m.insigniafs.com/cre-finance-insights/tag/construction)

## [SBA Loans for Commercial Real Estate](https://m.insigniafs.com/cre-finance-insights/sba-loans-for-commercial-real-estate)

[John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli) 

 Nov 14, 2023 3:19:10 PM

Navigate Commercial Real Estate Financing with INSIGNIA Financial Services and SBA Loans The Small...

[Read more](https://m.insigniafs.com/cre-finance-insights/sba-loans-for-commercial-real-estate)

[![](https://m.insigniafs.com/hs-fs/hubfs/Imported_Blog_Media/3-1024x576-1.jpg?height=200&name=3-1024x576-1.jpg)](https://m.insigniafs.com/cre-finance-insights/understanding-the-cre-capital-stack)

[CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [Lending](https://m.insigniafs.com/cre-finance-insights/tag/lending), [CREF](https://m.insigniafs.com/cre-finance-insights/tag/cref), [development](https://m.insigniafs.com/cre-finance-insights/tag/development), [commercial real estate](https://m.insigniafs.com/cre-finance-insights/tag/commercial-real-estate), [construction](https://m.insigniafs.com/cre-finance-insights/tag/construction)

## [Understanding the Commercial Real Estate Capital Stack](https://m.insigniafs.com/cre-finance-insights/understanding-the-cre-capital-stack)

[John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli) 

 Oct 17, 2023 7:06:33 PM

Understanding the Capital Stack in Commercial Real Estate Investments Allocating capital is a...

[Read more](https://m.insigniafs.com/cre-finance-insights/understanding-the-cre-capital-stack)

[![](https://m.insigniafs.com/hs-fs/hubfs/Imported_Blog_Media/business_owner1.jpg?height=200&name=business_owner1.jpg)](https://m.insigniafs.com/cre-finance-insights/why-you-should-work-with-a-commercial-mortgage-broker)

[CRE](https://m.insigniafs.com/cre-finance-insights/tag/cre), [Lending](https://m.insigniafs.com/cre-finance-insights/tag/lending), [DSCR Loans](https://m.insigniafs.com/cre-finance-insights/tag/dscr-loans), [loans](https://m.insigniafs.com/cre-finance-insights/tag/loans), [Blog](https://m.insigniafs.com/cre-finance-insights/tag/blog), [bridge loans](https://m.insigniafs.com/cre-finance-insights/tag/bridge-loans), [FHLMC](https://m.insigniafs.com/cre-finance-insights/tag/fhlmc), [CREF](https://m.insigniafs.com/cre-finance-insights/tag/cref), [FNMA](https://m.insigniafs.com/cre-finance-insights/tag/fnma), [fix and flip](https://m.insigniafs.com/cre-finance-insights/tag/fix-and-flip), [development](https://m.insigniafs.com/cre-finance-insights/tag/development), [commercial real estate](https://m.insigniafs.com/cre-finance-insights/tag/commercial-real-estate), [construction](https://m.insigniafs.com/cre-finance-insights/tag/construction), [finance](https://m.insigniafs.com/cre-finance-insights/tag/finance)

## [Why You Should Work with a Commercial Mortgage Broker](https://m.insigniafs.com/cre-finance-insights/why-you-should-work-with-a-commercial-mortgage-broker)

[John Morelli](https://m.insigniafs.com/cre-finance-insights/author/john-morelli) 

 Oct 23, 2023 9:37:43 PM

When it comes to financing multifamily and commercial real estate, the assumption that a bank is...

[Read more](https://m.insigniafs.com/cre-finance-insights/why-you-should-work-with-a-commercial-mortgage-broker)

[facebook-f icon](https://www.facebook.com/GoINSIGNIA) [linkedin-in icon](https://www.linkedin.com/company/insigniafs) [Twitter icon](https://twitter.com/INSIGNIAfs) [instagram icon](https://www.instagram.com/INSIGNIAfs)

---

© 2024 INSIGNIA Financial Services, LLC.  All rights reserved. The information provided herein is intended for business users only and is not intended for use by the general public or individual, personal, or household consumers. Programs may be cancelled or modified at any time without prior notice. Programs may not be available in all jurisdictions. These materials are intended to provide general information to the reader. This information is made available with the understanding that INSIGNIA Financial Services, LLC is not engaged in rendering legal, accounting, or other professional services. We use reasonable care in providing information but cannot guarantee accuracy or completeness. Information is provided with no warranty, express or implied, any and all such warranties are expressly disclaimed. We assume no liability for any loss, damage, or expense from errors or omissions in these materials, whether arising in contract, tort, or otherwise. Freddie Mac® and Optigo® are registered trademarks of Freddie Mac. Fannie Mae® is a registered trademark of Fannie Mae. INSIGNIA Financial Services LLC is not affiliated with the Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA), Freddie Mac or Fannie Mae. We do not conduct business in Alaska, Minnesota, Nevada, North Dakota, South Dakota, Oregon, Utah, and Vermont.

```json
{
  "@context" : "https://schema.org",
  "@type" : "BlogPosting",
  "author" : {
    "@type" : "Person",
    "name" : "John Morelli",
    "url" : "https://m.insigniafs.com/cre-finance-insights/author/john-morelli"
  },
  "dateModified" : "2024-07-17T02:52:20.145Z",
  "datePublished" : "2023-07-16T01:32:29.000Z",
  "headline" : "3 Ways AI May Transform Commercial Real Estate : INSIGNIA Financial Services",
  "image" : [ "https://m.insigniafs.com/hubfs/Imported_Blog_Media/andres-garcia-duzqs13jvGc-unsplash-4.jpg" ],
  "mainEntityOfPage" : {
    "@id" : "https://m.insigniafs.com/cre-finance-insights/3-ways-ai-may-transform-commercial-real-estate",
    "@type" : "WebPage"
  },
  "publisher" : {
    "@type" : "Organization",
    "logo" : {
      "@type" : "ImageObject",
      "url" : "https://m.insigniafs.com/hubfs/INSIGNIA%20Financial%20Services%20Logo%202026.png"
    },
    "name" : "INSIGNIA Financial Services, LLC"
  }
}
```