The Role of AI in Commercial Real Estate

Artificial Intelligence (AI) is no longer just a buzzword—it’s transforming industries across the board, and commercial real estate (CRE) is no exception. For tenants, staying ahead means understanding how AI is reshaping the landscape of CRE and using it to drive informed decisions. Hence why our Market Intelligence team is committed to delivering accurate, live data to help our teams and clients make informed decisions that provide a competitive edge in today’s fast-changing market.

Key Benefits AI Offers for Tenants

AI is revolutionizing CRE by offering innovative solutions that improve efficiency, reduce costs, and transform decision-making processes. By analyzing vast datasets, AI enables stakeholders to uncover actionable insights far beyond human analysis.

For tenants, the ability to make data-driven decisions is invaluable. AI’s applications offer a range of benefits:

• Market Intelligence: AI processes complex datasets to identify trends, property usage patterns, and operational metrics. This helps tenants determine optimal lease terms, negotiate better deals, and select properties tailored to their needs.
• Personalized Property Recommendations: Advanced AI tools provide property suggestions aligned with your specific requirements, saving time and effort.
• Portfolio Optimization: Efficiently manage your lease portfolio by analyzing performance metrics and resource allocation.
• Energy Management: AI helps optimize energy usage within leased spaces, reducing expenses and promoting sustainability.

AI takes much of the legwork out of processes, allowing tenants to focus on their core business operations while ensuring they’re well-informed when making decisions that impact their bottom line.

What the Experts Are Saying

According to PwC, 50% of Canadian CEOs believe AI will enhance product and service quality, and 59% expect significant changes in managing documentation and market monitoring. Stephanie Wood from Alate Partners has highlighted that AI’s long-term potential is immense, with over 500 Canadian companies already leveraging AI in areas such as design, acquisitions, and property management. For tenants, this means a shift toward more agile, efficient, and cost-effective occupancy strategies.

The Real Estate Institute of Canada also points out that AI-powered platforms are significantly enhancing property search and valuation. These tools improve the accuracy and efficiency with which tenants can find and assess properties, empowering them to make better decisions rooted in reliable data.

Challenges of AI in Real Estate and How to Navigate Them

While AI opens doors to new possibilities, it’s not without challenges. Generative AI systems have been known to suffer from biases, misinformation, and transparency issues. The EY Americas Real Estate report cautions against cybersecurity risks and intellectual property concerns, highlighting the need for ethical implementation and strong governance.

For tenants, this means choosing partners and tools that prioritize data security and ethical practices.

The Future of AI for CRE Tenants

The evolution of AI in commercial real estate is just beginning. From streamlining property searches to optimizing lease negotiations, the opportunities for tenants are vast. To fully unlock these benefits, it’s crucial to leverage live data and partner with advisors who understand the nuances of the market.

How Landmark is Leading the Way with AI

We recognize the game-changing potential of AI in commercial real estate. That’s why our Market Intelligence team responsibly leverages cutting-edge technology to ensure every client has access to live, accurate data that empowers them to make strategic, informed decisions, while ensuring that risk is mitigated while maximizing potential. Whether it’s negotiating lease terms, analyzing market trends, or managing your portfolio, we provide the insights you need to stay ahead of the curve. Our tailored analytics enable tenants to make decisions founded on understanding market opportunities and mitigating risks. For us, AI isn’t just a tool—it’s a critical part of how we redefine real estate for our clients.

---