Property technology adoption accelerates in commercial real estate industry

New business models create disintermediation.

February 12, 2019 |

Courtesy Pixabay

Automation, the use of AI, and disintermediating business models are having major impacts on the commercial real estate (CRE) industry, according to a new report from Altus Group.

The report is based on a global survey of 400 CRE executives at firms with assets under management of at least US $250 million. CRE firms are automating processes or applying AI and machine learning in the following ways:

· 41% of firms are using automation for benchmarking and performance analysis

· 39% for scenario and sensitivity analysis

· 36% for budgeting and forecasting

· 19% are using AI and machine learning for scenario and sensitivity analysis

· 16% are using AI and machine learning for accounting and property management

New business models associated with the sharing economy, co-working, and e-commerce are disrupting the CRE industry by cutting out middle steps and processes to create greater efficiencies. This is evident in financing, funding, and transacting processes.

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