We are already using AI to monitor market trends and to improve the speed and quality of our property searches for clients. We are also applying it to obtain expert advice on questions relating to the specific facility needs of our clients. This helps us to quickly identify which building are best suited for the individual needs of a client.
We are able to get advice on the mechanical, electrical and plumbing issues, which in the past would have required hiring engineers to answer. Consultations from a human engineers still often required, but with AI we are able to make better use of our clients’ time and money in the hiring of consulting professionals.
We also see the potential in the near future for AI to streamline the creation of Offers to Lease/Buy, and to accelerate the creation and negotiation of commercial leases. As with the case of consulting engineers, we are not seeing the elimination of the need for attorneys; we are anticipating AI will enable our clients to use the legal profession more efficiently. While AI holds great promise for saving our clients time and money, there are also pitfalls to be aware of.
We have all had the experience of our GPS system sending in the us in the wrong direction. Similarly, powerful AI tools such as ChatGPT are capable of providing incorrect and/or overly simplistic solutions. Large Language Models, such a Chat, draw upon massive amounts of data and patterns to answer the questions which it is posed. While the answer it comes up with may be correct in the aggregate, it may be the wrong solution to particular specific need. From a statistical standpoint, a correct answer covering two standard deviations in a sample is going to be wrong 5% of the time.
For that reason, we see the role of the professional commercial real estate advisor to be more important than ever. He/she provides a check on the AI solution proposed, by bringing to bear a ‘spidey sense’ developed over years of time on the ground and in the buildings. The experienced commercial real estate advisor also provides the benefit of human relationships which are so vital in getting mutually-agreeable lease and purchases across the finish line. Developing and assessing trust with the party across the table remains fundamental so negotiating good deals.