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How technology can change the real estate business

On Behalf of | Feb 5, 2019 | Commercial Real Estate

Commercial real estate investors in Texas may find that artificial intelligence technologies will begin to have an impact on the industry as a whole. The residential real estate market is already seeing some effects from the use of bots to respond to inquiries as well as algorithms that seek out potential homes for interested buyers. However, on the commercial side of the market, the greatest potential for AI may be found in easing and transforming transactions. AI principles may allow investors to better understand the opportunity presented by a particular potential transaction.

Some machine-learning systems may be able to generate predictions for how a particular investment will perform by analyzing large amounts of other data. Because AI technologies can process this information quickly, it can speed up the process of making a decision about an investment far beyond the knowledge easily within human reach. For example, algorithms can include calculations based on occupancy, rent, demographic data, crime rates, mobility scores and economic trends to produce reliable predictions for the potential of a certain real estate project.

These algorithms may also be able to offer predictive information that allows investors to develop and guide their strategies. For example, zip codes with high potential for profit could be generated based on data. The process of finalizing a transaction could also be expedited as automated systems allow investors to finalize financing for a deal more quickly and efficiently. In addition, targeted software could pinpoint potential problems, such as a developing trend toward late or missed rent for a particular project.

Starting out in the commercial real estate industry can be confusing at first but also highly rewarding and profitable, especially as a long-term investment. A real estate attorney may provide advice and representation throughout the process, from performing due diligence on a deal to negotiating a profitable contract.


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