Augmented Reality and Artificial Intelligence (AR and AI) may still be far from standard in CRE, but it’s only a matter of time. High end firms have already been using these tech tools on a grand scale. Research by Goldman Sachs estimates that by 2025, virtual reality (VR) technology alone will generate over $2.5 billion in revenue. Change is happening now and could hit sooner than many of us believe, leaving some CRE pros behind and pushing others to the forefront.
5 Ways AR and AI are Changing CRE by Sector
Every sector in CRE is seeing some version of AR and AI and each sector is using these technologies in different ways to increase revenue, save costs, and streamline processes.
AR and AI are affecting the way that retail sells products. Some stores are trimming down to the nuts and bolts and just using AR to sell clothes, furniture, cars, and appliances. This means that retail CRE will need to be equipped for these technologies and opens up the range of suitable assets for retailers looking to save on inventory costs and physical product warehousing.
In the office sector, we’ve already witnessed the shrinking physical workforce as technology allows employees to work remotely. Add to that the move to more robotics, automation, machine learning, and AI and we could see up to 60% of the workforce disappear.
On the other hand, the same technology makes collaboration across time zones and oceans much easier. Virtual meetings and AR is slashing travel budgets for large multinational corporations. CRE professionals in the office sector will need to come up with new and creative ways to pitch assets keeping these massive changes in mind.
Changes in industrial are closely tied to the changes happening in retail. Distribution channels, manufacturing, and industrial buildings are all being infused with AR and AI to help speed up deliveries, improve warehouse and distribution, and save costs by reducing errors and payrollalong these channels in exchange for less error and theft prone robots.
Hotels are seeing enormous changes in an effort to improve guest services by replacing front desk and concierge with voice-activated AI similar to what we’re seeing from Amazon Echo. Instead of looking at brochures or calling room service, guests can just say what they need – “turn down the lights” – and the room will do it.
After a few hours, the system ‘learns’ guest preferences and automatically sets the temperature or TV channel based on AI algorithms. Those same technologies can be used in CRE to promote assets while using AR to show clients the potential for these new technologies.
For multifamily, AI is helping to match tenants with landlords, investors with developers, and improving building management for building owners. New multifamily buildings could be filled up before construction has even begun using AR to allow prospective tenants to walk-through the space. Firms using these methods to pitch properties are going to be light years ahead of their competition.
Coldwell Bankers Commercial, Agents are available to help you navigate commercial real estate within Billings, MT.