What does AI mean for property efficiencies, security, wellness and more? Kato were pleased to join a recent roundtable debate exploring this topic, organised by Martin's Properties, and hosted by CoStar News.

Kato's COO and Co-founder, Leon Ballard, and Head of Landlord Partnerships, Bronnie Edwards, joined a panel of experts from across the industry, including participants from Martin’s Properties, Knight Frank, JDM Retail, Fifth Dimension AI, Love Ventures and Mishcon de Reya.

Here's the Kato debrief, pulling some key takeaways from such a broad and dynamic topic - with a particular interest on how AI looks to reshape the future of commercial property deal making, transactions and data.

AI and transactional efficiencies

Leon Ballard emphasised the profound shift AI is causing in the real estate sector. He highlighted the industry's traditional reliance on manual and disjointed data processes, stating, "The real estate industry has been wallowing in the dark ages, with manual disconnected data processes." Ballard noted that AI's ability to overlay data swiftly is revolutionising market efficiencies, bridging the gap between physical assets and human processes.

Demand for specialised properties

Bronnie Edwards pointed out the growing need for specific types of real estate driven by AI advancements. She stated, "There will be a sizeable increase in demand for data centres, especially as proximity to cost-effective energy sources becomes increasingly critical." Edwards also predicted heightened demand for specialised office spaces designed for collaborative research and laboratories, as well as research facilities crucial for developing AI-related technologies.

Enhancing tenant relationships through data

Both Ballard and Edwards stressed the importance of data in attracting and maintaining the right tenant mix. Edwards noted, "The job of the landlord or the provider of this retail space is to capture useful consumer data and provide that back to their occupiers." This data-driven approach helps tenants make informed business decisions, ultimately enhancing the value of the retail location and fostering successful tenant relationships.

Security and efficiency in transactions

Kato's representatives also highlighted improvements in transaction security due to technological advancements. Edwards mentioned, "We are definitely looking out for partners who we can collaborate with to empower our agents and customers to both streamline the transaction process and make it more secure." This focus on security and efficiency is crucial in an industry where the integrity of transactions is paramount.

Decarbonising the built environment

Edwards brought attention to the potential of technology in addressing environmental challenges. She stated, "One of the areas that technology could have the biggest impact on is decarbonising the built environment." Despite the significant energy requirements of the tech sector, leveraging AI to reduce the carbon footprint of buildings presents a significant opportunity for sustainable development.

Future outlook

Looking ahead, Ballard and Edwards are optimistic about the role of AI in real estate. They see AI not only as a tool for improving operational efficiencies but also as a catalyst for significant industry innovation. The ongoing evolution of AI and its applications in commercial real estate promise a future where technology and human expertise work together to create more efficient, secure, and sustainable property markets.

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Read the full article over at CoStar, or get in touch to see how Kato can help you move into the future.

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