John D’Angelo, Real Estate Solutions Leader at Deloitte, discusses challenges in real estate industry, including slow adoption of technology and resistance to change. He explores potential of AI in leasing process to streamline creation of complex leases and mitigate risks. Importance of storytelling and local knowledge in real estate emphasized. Conversation also touches on ROI in legal document creation, potential of AI in contract creation, and challenges and trends in real estate innovation.
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Quick takeaways
The resistance to technology adoption in the real estate industry may stem from a fear of losing the value of years of experience and uncertainty about the impact of technology on individual roles.
Embracing innovation and finding a middle ground between resistance and blind adoption of AI technologies can be advantageous in the real estate industry.
Deep dives
Real estate industry's reliance on local knowledge and storytelling
The podcast episode discusses the challenges and trends in the real estate industry, highlighting the importance of local knowledge and storytelling. The speaker emphasizes the historical resistance to adopting new technologies and how local market knowledge still plays a crucial role in the industry. The lack of a centralized listing service for commercial real estate makes it necessary to rely on personal connections and conversations to gather information about available properties. The speaker suggests that the resistance to technology adoption in real estate could be driven by a fear of losing the value of years of experience and the uncertainty surrounding the effects of technology on individual roles.
The need for change in the real estate industry
The podcast explores the notion that change is inevitable in the real estate industry, prompting conversations about the adoption of new technology. The speaker highlights the importance of acknowledging the need to adapt and the potential consequences of clinging to traditional methods indefinitely. The industry is described as having a 'monster in the closet' mentality, with many individuals hoping that change won't affect them personally. However, the podcast suggests that embracing innovation and finding a middle ground between dogmatic resistance and blind adoption of AI technologies can be advantageous in the real estate industry.
AI's impact on site selection
The podcast discusses the potential role of AI in site selection within the real estate industry. It suggests that AI can help identify trends and patterns in various data sets, such as satellite imagery, demographic data, and migration data. AI tools can assist in highlighting areas of potential growth and opportunity that may not have been initially considered. The speaker mentions the importance of digital natives ascending to leadership positions within real estate companies, as their familiarity with technology can drive interest in exploring the possibilities offered by AI in site selection.
AI in lease creation and analysis
The podcast delves into the applications of AI in lease creation and analysis within the real estate industry. The speaker emphasizes that AI can streamline the leasing process by automating repetitive tasks, decreasing labor requirements, and reducing the time spent creating and understanding complex lease agreements. AI tools can assist in comprehending lease language, identifying potential risks, and optimizing lease terms based on market trends and data. The potential benefits of AI in leases include increased efficiency, decreased risk, and revenue optimization.
Today’s guest is John D’Angelo, Real Estate Solutions Leader at Deloitte. John joins Emerj CEO and Head of Research Daniel Faggella on today’s program to discuss the challenges and trends in the real estate industry, highlighting the local knowledge-heavy nature of the business. Throughout the episode, John emphasizes the true sources of friction to new technology adoption and the importance of storytelling in the sector. Later, the discussion delves into the leasing process, where AI can streamline the creation and understanding of complex leases, reducing labor and mitigating risks. This episode is sponsored by Deloitte. Learn how brands work with Emerj and other Emerj Media options at emerj.com/ad1.
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