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Proda’s AI power: Increasing the value of data for real estate markets

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Artificial Intelligence-powered tools have been under the spotlight since the launch of Chat GPT in November 2022. Real estate professionals across the value chain are trying to figure out which AI applications will have the biggest impact on their efficiency and performance.   

They certainly are well advised to do so. Data and the AI applications it will feed are the future of real estate decision making and management processes. Multiple AI applications already exist in the built world like the visualization of construction sites, HVAC management, floor plan optimization, and occupancy monitoring to name a few.   

One area where AI will be a game changer is the enablement of real estate data at massive scale which today is mostly unstructured and comes in endless different formats due to the heterogeneity of assets, asset classes, countries, strategies, and fragmentation of the industry.  

FinTech applications will particularly benefit from the increased access to qualitative and large data sets generated by AI models. In our last blog post, we highlighted FinTech solutions – a core investment theme for JLL Spark – that enable asset managers to operate more efficiently with reduced costs. For example, Proda is a perfect illustration of how this will play out in the specific case of rent roll data.  

The cornerstone of real estate financial models, rent roll data is managed and shared by all players in the industry. The lack of standardization forces each of them to mobilize expensive resources or to pay data management suppliers to capture and check the data before they can utilize it. This analog process limits both the accuracy and frequency of reporting and financial modeling, which, in turn, negatively impacts real estate actors’ decision-making capabilities. 

Proda has developed a machine learning-based software tool to import and quality check any rent roll data regardless of asset type, language, market, or data format. Their solution saves up to 90% of data processing time: five minutes instead of an average of one to two hours for a single asset, and one day instead of a couple of weeks for large portfolios. Imported information is transferred into an 800-point data model allowing users to enrich data, export it manually or through APIs, build reporting, and run queries or analyses leveraging AI models. 

At JLL Spark, we expect FinTech solutions like Proda to change the landscape of real estate transactions dramatically. The leading asset management firms using Proda not only gain accuracy, availability, and security of their most important data, thus allowing their team focus on valued added tasks, they are also creating an unfair competitive advantage by utilizing cutting-edge AI-enabled capabilities to obliterate the status quo.  

Technology is reshaping the commercial real estate industry, but lack of data availability and standardization has slowed down innovation. AI, and generative AI in particular, will exponentially lift this blocker and, by doing so, unlock new solutions and lead to more technology adoption.

Written by Tanguy Quero, Investment Principal at JLL Spark

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