Written by Karen Burns,
Fyma CEO and Co-Founder
At the UK PropTech Association's summer event, the debate over whether the commercial property industry can realize the full potential of AI was as heated as it was on a July afternoon. Those who missed this event also missed out on the lively discussions and insightful insights. . While the consensus was leaning toward cautious optimism, it was time for a reality check. Unless commercial real estate companies start thinking of themselves as data companies, the AI train will leave without them.
It's no secret that the commercial real estate industry isn't known for being one of the first to adopt cutting-edge technology. Historically, it has been more of a “wait and see” school, and for good reason. CRE deals with brick-and-mortar assets, and valuations are built on decades of established practices. However, as the pace of technological innovation accelerates significantly, this “slow and steady” approach is beginning to show its limitations. AI is already bursting through the door, offering unprecedented opportunities to improve asset management, tenant relationships, and even environmental sustainability. But here's the kicker. AI without data is like trying to drive a car without fuel.
Shift: From real estate to data assets
The promise of AI lies not in the software itself, but in how we harness the power of data. We've all heard that “data is the new oil,” but in commercial real estate, data is more like groundwater. Data is essential, but it's often hidden beneath the surface, difficult to extract, and undervalued. CRE companies typically store large amounts of data, from tenant behavior and walking patterns to building energy consumption and maintenance schedules. However, most of this data remains untapped, locked in silos, or worse, ignored.
CRE pioneers are those that have properly empowered their data teams and made data a strategic asset. These companies understand that they are no longer in the business of managing property alone. Their job is to manage information.
But here's the problem. Many in the industry still view AI and data as “nice-to-haves” rather than essential tools. Conversations often revolve around ROI calculations (“What is the return on this AI investment?”), and certainly those calculations can be made within a narrow scope. For example, when you apply AI to optimize your HVAC system, the savings can be immediately quantified. But the real value of AI comes from long-term strategic change, and this is where the industry is struggling.
Beyond ROI: The big picture
Think about this. What is the ROI of having a data-driven culture? What is the payback period if you can predict tenant cancellations in advance? Or if the building is underutilized and generates additional revenue? Is it because you know you can reuse it for your own purposes? These are the kinds of insights that AI can unlock, but it requires a shift in mindset. It also often requires changes in the workforce (or significant upskilling). AI is more than just a point solution. It is a tool for change. And this transformation can't happen unless CRE companies stop thinking of data as just another asset and start seeing data as a core asset.
When we talk about the full potential of AI, we are talking about predictive analytics, real-time decision-making, and automated processes that have the potential to change the way buildings are managed and evaluated. Companies that lead this effort are those with robust data infrastructure and the teams to support it. Without this foundation, AI efforts are doomed to remain pilots and experiments that never scale.
leadership role
None of this can happen without leadership that understands the importance of data. Tomorrow's real estate leaders are more than just dealmakers. They become data controllers. Empowering data teams means giving them a seat at the table and integrating their insights into core business strategy, and in some cases even going beyond traditional ROI discussions. means.
In a way, it's about accepting a little discomfort. AI requires an upfront investment, not just in money but also in trust. Trust your data, trust your team, and trust that your technology can deliver value even if it doesn't immediately show up in a spreadsheet. It's like owning a property that has been in your family for generations. Although we don't always know what the future holds, we believe it is a valuable part of our portfolio.
casual thoughts
Let me give you this analogy (I promise this is not just a joke): If data is the new oil, then AI is the refinery. However, unlike oil, data never runs out and becomes more valuable the more you use it. So why is the industry still treating data, which could be a renewable and ever-growing resource, like an old oil well in Texas?
In conclusion, the commercial real estate industry is at a crossroads. The potential of AI is immense, but it can only be realized if companies first start thinking of themselves as data companies. Empower your data team, invest in the right infrastructure, and most importantly, shift your mindset from short-term ROI to long-term value creation. Then, not only will AI fulfill its potential, it will redefine the future of commercial real estate.
And who knows? Perhaps next year's UKPA debate will focus on whether people have ever doubted AI in the first place.
