04 Jun Robots vs Real Estate Agents: Will AI Replace Commercial Real Estate Agents?
Estimated Read Time: 3 Minutes
The buzz around artificial intelligence (AI) has everyone wondering if their jobs are safe. In the commercial real estate world, agents might be feeling a tremor of uncertainty. Will AI become the new deal closer, leaving human agents out in the cold? Let’s dive into the latest trends and see if robots are poised to take over.
AI: Powering Up Efficiency In Commercial Real Estate
AI Can Help Commercial Real Estate Agents Gain Efficiency
There’s no doubt AI is transforming the commercial real estate game. Forget robot realtors showing office space – AI’s strength lies in data analysis. AI tools are devouring massive datasets to:
- Uncover hidden gems: Sifting through mountains of market data, AI can identify properties that perfectly match an investor’s needs.
- Predict market shifts: AI can analyze trends to forecast market fluctuations, helping investors make informed decisions.
- Develop Content: Want to write an analysis on a current market? AI has the data to power these insights AND can create effective summaries with increasingly impressive accuracy.
Commercial Real Estate Agents (The Human Ones!) Still Hold the Keys
While AI excels at crunching numbers and producing content at scale, there are aspects of commercial real estate that remain firmly in the human realm. Here’s why AI isn’t likely to replace your friendly neighborhood commercial agent:
- The Negotiation Nook: AI can’t replace the art of the deal. At least, it’s not something AI can support any time soon. Experienced agents leverage their negotiation skills to secure the best possible terms for their clients.
- Strategic Advisors: A good agent acts as a consultant, with complex niche local knowledge of the market. Anyone can access data and statistics, but there’s no replacing an experienced agent who can guide you along the path.
- Building Relationships: The commercial real estate market thrives on connections. Agents build trust and rapport with clients, understanding their unique needs and goals. This is humans-only territory.
- The Local Advantage: Navigating the intricacies of a specific market requires a deep understanding of local regulations and trends. This is where an agent’s local expertise comes into play. It’s not just about facts and figures, it’s about understanding and navigating complex dynamics.
The Future: A Powerful Partnership
The future of commercial real estate is likely to see a powerful partnership between AI and human agents. AI will handle the heavy data lifting, freeing up agents to focus on:
- Strategic Guidance: With AI providing market insights and property recommendations, agents can focus on crafting winning investment and leasing strategies.
- Client Communication: The human touch remains irreplaceable. Agents will continue to build relationships, understand client needs, and provide clear communication throughout the transaction.
Here’s Miller Diversified Vice President Jerry Miller’s view on the landscape: “While data driven decisions are still correct from a probability standpoint, the key element of AI will never capture in my opinion is that humans are still humans.” Jerry pointed out that there is a certain element of unpredictability to our organic existence that AI will not be able to account for in any kind of authentic way. “People will do things that are not always logical,” Jerry said. “There is an emotional component to humans that affects decision making.”
Jerry also pointed out that AI cannot read “the mood in the room” and is therefore not yet agile enough to accommodate for sudden game-changers and unforeseen external events which affects human behavior.
The Takeaway
AI is a game-changer for commercial real estate, but it’s not here to steal agents’ jobs. Instead, AI will become a powerful tool, empowering agents to become more efficient and strategic. Further, it’s critical to understand that there are some components that AI can simply cannot replace. The future is bright for commercial real estate professionals who embrace AI as a partner, allowing them to provide even greater value to their clients.
How Is Miller Diversified Using AI?
While commercial real estate isn’t typically considered the most innovative industry out there, Miller Diversified does things a bit differently. We’ve already incorporated AI into our daily workflows, and are seeking ongoing tools and education to stay on the cutting edge of this rapidly changing landscape. We’ve already seen our software tool set augmented with AI features, and have benefitted from AI virtual assistants and content generation for initial research. We are also keeping a pulse on capabilities of AI to do an even greater job of delivering services to our realty clients.
Questions about how a commercial real estate agent can help you? We’re here to help, so drop us a line.