10 April AI & CRE: How Artificial Intelligence Will Shake Up Commercial Real Estate April 10, 2024 By Melisa Rana Commercial Real Estate News, Property Investment apartment, business tips, multi-family property, office space, real estate trends, warehouse 0 AI & CRE: HOW ARTIFICAL INTELLIGENCE WILL SHAKE UP COMMERICAL REAL ESTATE April 10, 2024 | Commercial Real Estate News, Property Investment | real estate trends, business tips, office space, apartment, multi-family property, warehouse Artificial intelligence (AI) has been a hot-button topic of discussion, in not only educational settings, but the workplace. Business owners and investors want to stay ahead of the curve, and employees fear becoming redundant, but to make a long story short, no one knows fully what to expect with AI. For those who are using AI in their businesses already, early tools are being lauded as time-savers, improving productivity in many different areas and limiting time spent on mundane tasks. According to Forbes, the AI market size is on track to reach $407 billion by 2027 (from $86.9 billion in 2022), which means that all industries are going to have to learn to adapt. With a new industry that’s growing so quickly, AI is going to demand its own space to expand physically. To answer this growing demand, here’s how the CRE space will answer. Answering AI’s Growing Space Demand Artificial intelligence tools need developers and specialists working in those fields, which makes tech centers particularly reactive to industry growth. Areas like the San Francisco Bay area, Boston, Seattle, and New York will need to provide adequate working options for tech employees. In the past, this meant that investors could expect more opportunity with office spaces, but with the ongoing battle between remote workers and business owners, offices continue to be in a precarious state. It’s no secret that the tech industry has one of the highest rates of workers opting for remote schedules. In fact, analysts at Remote.com call software development the world’s most remote-friendly industry. This means that assets more likely to take advantage of this influx in workers are higher-end multifamily properties and “space as a service” (SpaaS) locations like coworking spaces. Universities are also likely to expand further for similar reasons (although analysts have been calling student housing a wise investment for some time). Per the National Student Clearinghouse Research Center, university enrollment grew across the board, with community colleges seeing the largest spike compared to spring 2023 (+4.7%). Along with the overall societal emphasis on post-secondary education, the growth of the AI industry is sure to attract more students into lecture halls. Lastly, advancing AI companies and their integrations into “smart” buildings also means increased demand for data centers and energy grids. Space for hardware manufacturers and vendors will also necessarily expand as the rippling effects of new technology spread. While new technological advancements may cause certain positions and ways of accomplishing business goals to become redundant, new industries and jobs will be created to take their place. To learn how to best capitalize on an evolving industry, investors, brokers, and property owners need to watch carefully for rising opportunities. For more on the latest trends and news in commercial real estate, you’re in the right place: The Commercial Inspector. At National Property Inspections, commercial assets are a priority. Contact a local NPI inspector today for all your commercial inspection needs! Comments are closed.