Generative AI and agentic AI are reshaping the commercial real estate (CRE) industry, and owners and operators who get in on the ground floor can future-proof their assets and outperform in the market, according to a September report from Deloitte Canada.
The Deloitte report – which surveyed 100 CRE owners and 100 CRE tenants in Canada – found that owners and operators are contending with higher operating costs, higher vacancy rates, and lower rental prices. Meanwhile, tenants are responding to tariff pressures with tighter budgets, scaled-back expansion, and prioritising flexibility and customisation in lease terms and spaces.
Deloitte says CRE owners can use AI in three ways to future-proof asset performance.
First, they should treat AI as a value driver rather than a cost, and set out to drive efficiency in the face of rising cost pressures. For example, one large retailer deployed autonomous HVAC optimisation across 600+ stores, realising $1.38 million and 7.98 million kWh in electricity savings.
The state of commercial real estate in Canada today
60% increase in construction and development costs. 57% supply chain delays. 48% lower asset valuation. 44% lower tenant demand and industry exposure. 40% higher operational expenses.
In another example, QuadReal Property Group used Funnel’s AI-powered renter CRM and virtual leasing agent to automate lead handling, tour booking, and pre-qualification across its 10,000-unit portfolio. The firm realised an increase in tour-to-lease conversions of 33%, a shortening of vacancy days, and an increase in effective rent capture.
Second, CRE owners can deploy GenAI and agentic AI to automate key processes, such as researching and analysing CRE data or optimising HVAC. Deloitte says it has a proprietary solution for streamlining lease management tasks, including lease data abstraction, querying, reviewing, and reporting.
Third, owners can modernise their enterprise resource planning (ERP) systems and improve them with GenAI capabilities. As the digital spine of an enterprise, ERP can accelerate or slow decision-making, with new AI solutions a key factor. AI can help automate data entry and processing, enhance intelligent reporting and forecasting, automate work orders and compliance, and personalise tenant and investor communications, among other areas.
Deloitte says GenAI can also be integrated into client workflows to enable resident/tenant follow-ups, recommend the approval or review of invoices, and query data through virtual assistants.
Sourced from Deloitte