REAL ESTATE NEWS

Artificial intelligence and modern data collection have been a game-changer for commercial real estate and it's only going to continue to prosper. But some firms may have a competitive advantage today based on the tools they leverage.

These tools are deployed in a variety of different ways, as noted by industry leaders at CREtech New York 2025 during a panel. The speakers were Stephen Yalof, president & CEO of Tanger, Toby Bozzuto, President & CEO of Bozzuto, Luke Petherbridge, CEO of Link Logistics, Andrew Holm, partner and head of U.S. diversified equity at Ares Management and Cathy Marcus, co-head & global chief operating officer of real estate at PGIM Real Estate.

Mainstream Tools Are Used

A mainstream AI tool that many have become accustomed to using today is ChatGPT. Even Stephen Yalof, president & CEO of Tanger, is using it to conduct due diligence in the retail sector and used an example of a Kansas City shopping center his company recently acquired.

"I went on Chat GPT, and said, make a list of retailers that are typically found in one of my centers, that don't exist in Kansas today," he recalled.

"I got a list of 25 retailers. So instead of taking two weeks before I can make my first phone call and start canvassing and calling retailers, I have a list right in front of me, because that work had been done for me."

He added that these types of tools and knowing this information makes his retail leasing team's jobs easier.

Aligning data with Human Interaction

Holm continued on that point, noting that it's important to align automation with human interaction. He used an example of a self-storage portfolio acquisition this year that hosts 65,000 tenants.

"We have a team of about 15 data scientists who are figuring out pricing for each individual unit each month," he said of the property.

"And that's something where the automation part, I think, matters much more, because it's effective [and a] more homogenized kind of product with fewer relationships.

That's why it's important to build a culture within your workforce, according to Petherbridge.

"It's simply hire great people, but then let great people do great things," he emphasized. "When you hire someone, you give them freedom within boundaries to go and fail, push and drive."

While Petherbridge warns that strategy doesn't always prevail — more times than not — better outcomes result.

Internal Data Could Provide Advantage

As many leverage AI and technology — some command a competitive advantage over the by using their own in-house capabilities — rather than tools that everyone else uses. Holm sees internal and proprietary tools as areas continuing to evolve — but does not underestimate the importance of adopting these.

"Every large firm has access to the same third-party data and analytics, but it's the internal data that's really important," Holm highlighted.

"From an operational perspective, our business has gotten more vertically integrated over the last five years."

Above all else, your relationship with customers is the most important factor, along with understanding how they make decisions, according to Holm. It's AI and technology that can make the difference today, whether that's improving speed or efficiency.

Source: GlobeSt/ALM