How generative AI is set to transform corporate real estate in APAC

Colliers says AI will impact at least eight key areas of service delivery.

Generative AI is set to drive significant opportunities for the Asia Pacific corporate real estate sector in the years ahead, according to a new report from global diversified professional services and investment management company, Colliers.

The report, AI in Corporate Real Estate: the now, the next and the possible, found the flourishing generative AI market in APAC has untapped potential for achieving new levels of productivity, creativity, and efficiency in the CRE sector.

“For CRE, AI is going to impact every service line by creating new tools to improve service delivery,” Mike Davis, Colliers’ Managing Director of Occupier Services, Asia Pacific, said. “Whether it’s looking for a new location, understanding how to optimise a portfolio or designing the right space for a client’s employees, AI will allow us, in the commercial real estate industry, to use more data, faster, and provide more options to make informed decisions.

According to Colliers’ report, AI’s potential impact on service delivery in the following key areas:

• Workplace Advisory: Automated algorithms to generate different occupancy and 3D space options.
• Lease Administration: Leveraging OCR AI technology to streamline management processes.
• Portfolio Strategy: Predictive analytics to continuously seek to optimize portfolios.
• Facility Management: Anticipatory building maintenance and automated equipment notifications.
• Project Management: Recommendations for lowest cost and optimal resource allocation.
• Transaction Management: Self-guided survey of location options supported by automated workflows
• Location Intelligence: Proactively search for new and emerging talent pools and locations.
• Supply Chain Solutions: Predict real-time adjustments to the demand forecast or inventory requirements.

“The timing and extent of impact will differ depending on the specific domain,” Mr Davis said. “Some segments, like transaction management, present challenges to adoption due to their sensitive nature. In contrast, areas like lease administration and facility management are already witnessing the integration of AI, albeit with a potentially lesser overall impact on the industry.

“I’m particularly excited by the potential of AI in portfolio strategy and transaction management. Using machine learning to mine large pools of portfolio data will allow real estate teams to develop portfolio strategies in a fraction of the time. And, when combined with predictive analytics, transaction management teams will be able to develop optimal transaction strategies by better timing the market based on forecasted market trends.”

Read the full report here.