By Karen Burns, 

CEO & Co-Founder at Fyma

At the UK PropTech Association’s summer event, the debate on whether the commercial real estate industry would achieve the full potential of AI was as heated as a July afternoon—those who missed it, I’m afraid you also missed some lively discussion and sharp insights. The consensus leaned towards a cautious optimism, but it’s time for a reality check: unless commercial real estate companies start thinking of themselves as data companies, the AI train will leave without them.

We all know it: the commercial real estate industry isn’t exactly known for being the early adopter of cutting-edge tech. Historically, it’s been more of a “wait and see” crowd, and with good reason—CRE deals in brick-and-mortar assets, with valuations built on decades of established practices. However, as the pace of technological innovation has vastly accelerated, this ‘slow and steady’ approach is showing signs of strain. AI is already pushing 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.

The Shift: From Real Estate to Data Estate

AI’s promise isn’t in the software itself but in how it harnesses the power of data. We’ve all heard that “data is the new oil,” but in commercial real estate, data is more like groundwater—essential but often hidden beneath the surface, difficult to extract, and undervalued. CRE companies typically sit on mountains of data, from tenant behaviors and foot traffic patterns to building energy consumption and maintenance schedules. Yet, most of this data remains untapped, trapped in silos or, worse, ignored.

The trailblazers in CRE are the companies that have properly empowered their data teams and made data a strategic asset. These companies understand that they are no longer just in the business of managing properties; they are in the business of managing information.

But here’s the rub: many in the industry still see AI and data as “nice-to-haves” rather than essential tools. The conversation often revolves around ROI calculations—“What’s the payback on this AI investment?”—and sure, in a narrow scope, those calculations can be made. For instance, AI can be applied to optimize HVAC systems, and the savings are immediate and quantifiable. But the real value of AI comes from long-term, strategic shifts, and this is where the industry struggles.

Beyond ROI: The Bigger Picture

Let’s consider this: What’s the ROI of having a data-driven culture? What’s the payback period on being able to predict tenant churn before it happens? Or on knowing that a building is being underutilised and can be repurposed to generate additional income? These are the kinds of insights that AI can unlock, but they require a shift in mindset – and often also workforce (either that or heavy upskilling). AI is not just a point solution; it’s a tool for transformation. And this transformation can’t happen unless CRE companies stop thinking about data as just another asset and start seeing it as the primary asset.

When we talk about AI’s full potential, we’re talking about predictive analytics, real-time decision-making, and automated processes that can change the way buildings are managed and valued. The companies leading this charge are those with robust data infrastructures and the teams to support them. Without this foundation, AI initiatives are doomed to remain pilots and experiments that never scale.

The Role of Leadership

None of this can happen without leadership that understands the importance of data. The real estate leaders of tomorrow won’t just be dealmakers; they’ll be data custodians. Empowering data teams means giving them a seat at the table, integrating their insights into the core business strategy, and, yes, sometimes even going beyond the traditional ROI conversation.

In some ways, it’s about embracing a little discomfort. AI requires an upfront investment—not just in terms of money but also in terms of trust. Trust in your data, trust in your team, and trust that the technology can deliver value even if it doesn’t show up immediately on a spreadsheet. It’s a bit like owning a property that’s been in the family for generations. You don’t always know its future potential, but you trust that it’s a valuable part of your portfolio.

A Lighthearted Thought

Let me leave you with this analogy (and I promise it’s not just an excuse to squeeze in a joke): If data is the new oil, then AI is the refinery. But unlike oil, data doesn’t run out, and the more you use it, the more valuable it becomes. So why is the industry still treating data like an old oil well in Texas, when it could be a renewable, ever-growing resource?

In conclusion, the commercial real estate industry stands at a crossroads. The potential of AI is immense, but it can only be realized if companies start to think of themselves as data companies first. Empower your data teams, invest in the right infrastructure, and—most importantly—shift the mindset away from short-term ROI to long-term value creation. Do that, and AI will not just meet its potential; it will redefine the future of commercial real estate.

And who knows? Maybe next year’s UKPA debate will be about whether we ever doubted AI in the first place.