Property technology adoption accelerates in commercial real estate industry

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.