AI in Real Estate Investment Management: Transforming Property and Deal Performance

by Alpaca Real Estate in AI, White Papers

July 15, 2024

Published by AFIRE in Q3 of 2024, this ARE white paper explores how artificial intelligence is revolutionizing real estate investment management through two distinct verticals: In-Asset applications that enhance property performance and Out-of-Asset solutions that transform deal team workflows.

Key Findings:

  1. AI impacts can be traced along two distinct verticals: In-Asset platforms that enhance property performance through NOI optimization, and Out-of-Asset platforms that improve investment and asset management workflows
  2. Deal pipeline management can be reduced from 90 minutes to 1 minute through AI automation, with potential savings equivalent to 2-3 analyst-level employees dedicated to data input
  3. Nearly 60% of predictive power in real estate comes from non-traditional variables, making AI’s data synthesis capabilities particularly valuable for investment decisions
  4. Hospitality leads AI adoption with revenue management systems showing up to 20% RevPAR uplift, while multifamily, data center, office, and industrial sectors each present unique AI implementation opportunities
  5. Successful AI implementation requires starting with clear, achievable goals and focusing on incremental wins rather than attempting all-encompassing solutions

Alpaca Real Estate leverages its strategic alignment with Alpaca VC to implement cutting-edge AI solutions, including bespoke pipeline management platforms that create measurable alpha in real estate investments.

Download the full research report ➡️