Is artificial intelligence (AI) just a buzzword, or is it a revolutionary technology with the potential to reshape how real estate owners and property managers work? For those who have tested the waters, the answer is clear: embracing AI in commercial real estate (CRE) can unlock tremendous value.
Property management AI is helping teams become more efficient, create exceptional tenant experiences and make smarter property decisions… all while contributing to a more sustainable environment. Despite the vast potential, our research shows only 20% of property managers are using AI in their building operations today, while 90% plan to increase AI investments in the next five years.
Incorporating AI into your property management takes more than just following trends—you need a thoughtful approach that will turn the hype into real impact. That’s why we’ve created four tips to help you realize the benefits of property management AI, informed by the work we’re already doing for companies just like yours.
Define what AI means for your business
Want AI to help with property management? Start by figuring out the problems you most need to solve. For example, do you spend a lot of time on routine tasks that could be automated? Do you need deeper or more predictive insights from your data? Are you seeking a way to streamline tenant communication?
Generative AI (GenAI) tools can help address all of these challenges (and more). AI can help with everything from making your HVAC systems run better to improving how you engage with tenants—and the possibilities keep growing.
“A lot of folks think GenAI starts and ends at the chatbot,” explains Aliza Carpio, Senior Director of Technical Product Management at JLL Technologies. “But it can actually do so much more, like crunching numbers for your finances, finding better terms in your leases and comparing different properties to help you make smarter real estate decisions.”
Use your data sources effectively
AI is only as good as the data that feeds it. Plentiful, quality data is essential to successfully adopt of AI in CRE.
It helps to focus on processes that produce a lot of information, like heating and cooling operations. HVAC systems generate vast amounts of valuable data related to temperature control and energy costs, which can help you save money and run your building more efficiently.
“AI does the heavy lifting of analyzing data and spotting important patterns for property owners and investors,” says Carpio. “It can even suggest what to do next. For example, it can pull together different sources of data to tell you how your portfolio is performing. When some properties are performing better than others, AI can figure out why and suggest ways to apply those successful approaches elsewhere.”
The best property management AI solutions work well with what you already have and can still be helpful even when your data isn’t perfect. They’ll also show you ways to get better insights from your data.
Position your people for success
People are the most important element of effective property management. AI can never replicate a team’s relationships with tenants and vendors or the strong instincts an experienced property manager brings to the table.
AI isn’t here to take your people’s jobs—it’s here to help them do more with less effort. For example, it can handle all that number-crunching that used to eat up hours of time.
“Right now, there’s a lot of data in spreadsheets,” says Carpio. “Many investors, owners and property managers spend weeks gathering spreadsheets with data from each property just to try to understand it. AI brings that down to less than two minutes.”
AI gives you more information and better insights, helping you make smarter decisions. For example, leading property management teams now use AI to spot equipment problems before things break down. The AI watches for unusual patterns in things like temperature readings and vibration in your critical building systems, then warns the property manager when something doesn’t look right.
These kinds of tools help your team run their buildings better and provide greater value to tenants and investors.
Start small, then grow
Start small with something that’s already giving your team issues, and then build from there.
If your team spends hours dealing with tenant communications, that’s a great place to begin. AI can help write updates about building news and events, suggest spaces that match what tenants are looking for and answer common questions like a virtual concierge. Tenants will receive a prompt and thoughtful response to their concerns, which makes them happier with your service.
Starting with one focused application — whether it’s streamlining communications, predicting building usage, improving heating and cooling systems or making lease renewals simpler. This will show everyone the real benefits and build momentum.
“The quickest wins usually come from letting AI handle the boring, repetitive tasks that eat up everyone’s time,” Carpio says.
Seize the potential of property management AI
Property owners and managers who embrace effective AI solutions are saving time, making tenants happier and making smarter choices about their properties.
The teams seeing real results are targeting specific pain points and using AI to give their staff superpowers rather than replace them. With a thoughtful, results-focused approach that starts with clear goals, you can move beyond the hype and put AI to work delivering actual value for your business.
Download our eBook on practical ways to use AI in commercial real estate, today.
