Real estate managers are pioneering strategies that harness AI and data analytics to improve commercial leasing operations and maximize the use of real estate data
NOTE: The following excerpt written by senior writer Isobel Markham originally appeared in the Wall Street Journal.
Corporate real estate lease administration and management is growing increasingly complex due to shifting return-to-office strategies in the wake of the pandemic, a surge in short-term leases and renewals, and the introduction of new lease accounting standards. By leveraging technology, developing flexible lease strategies, enhancing compliance, optimizing space utilization, and streamlining processes, organizations can more effectively navigate the complexities and better understand whether their real estate portfolio aligns with their business objectives.
Global real estate leaders appear to be interested in exploring how generative AI capabilities can help to streamline the task. The Deloitte Center for Financial Services conducted a survey of 750 CFOs at major commercial real estate owners and investment companies around the world and found that 72% of respondents indicate their organizations are either in piloting, early-stage implementing, or full production with strategies enabled by AI.
“Two key advantages of using lease administration technology are its scalability and flexibility, which is crucial in today’s dynamic corporate real estate environment,” says Nathan Florio, a principal with Deloitte Transactions and Business Analytics LLP. “As businesses grow and their lease portfolio expands, managing leases manually becomes increasingly challenging. Technology-driven lease administration can provide the necessary scalability to handle a growing volume of leases efficiently.”
Markham later outlines steps industry leaders can take to help mitigate process and data challenges including
- Adopt generative AI-enabled digital lease administration platforms
- Integrate lease services
- Leverage advanced analytics and AI tools
- Redefine and streamline the lease management process