When someone mentions the letters “AI,” what comes to mind? Perhaps it’s a young robot boy who is programmed to love and looks like Haley Joel Osment. Or, maybe it’s a Turing test that involves a human being’s relationship with an intelligent humanoid robot, a la Ex Machina. The bioengineered androids of Blade Runner are also often associated with artificial intelligence.
Whatever your mind conjures up, it’s likely not the 1s and 0s of software that you use on a daily basis. But, the truth is, most of the AI we deal with is just that: software. In terms of the commercial real estate world and lease abstracts, AI can be extremely beneficial for organization and efficiency. Let’s take a look at how the artificial intelligence you’ll find in CRE automation software isn’t too far removed from the friendly “AI” robots you see in the movies.
What Is Lease Abstraction?
First, let’s define lease abstraction. Lease abstracts are basically summaries of the most important elements in a lease contract — terms, conditions, specifics, definitions, etc. These elements can get pretty complex, which is why some lawyers even make a living deciphering them for people. In the end, though, a professional lease abstract will define the key terms you need to know before signing on the dotted line. It also isolates and puts a spotlight on extra obligations, such as property repairs, upkeep, security improvements and so forth. Lease abstraction can easily overwhelm even the most seasoned CRE professional — especially when you account for multiple properties — but automation software can help.
The Intelligence of Real Estate Automation
AI in lease administration has come a long way from simply logging numbers in an Excel spreadsheet and using a formula to save some brainpower and a few keystrokes. Real estate software like Quarem uses automation to intelligently organize, consolidate and complete several of the tasks you do on a daily basis. Here are a few of the ways real estate automation embraces the power of artificial intelligence:
- Producing a reliable list of every location your organization leases or owns
- Notifying you about every upcoming lease expiration, termination right or option
- Creating rent projections for the next month, quarter or decade
- Identifying lease negotiations that are in process and updating you on their status
- Securing your data in a cloud-based system with constantly updated protocols
These are all menial tasks that a thinking person could do, of course, but require time. Automation software completes these quickly or instantaneously in the background while you focus on more important things. Oh, and did we mention the best part about real estate automation software? It’s valuable for both individual properties and entire portfolios.
To see Quarem’s lease abstraction automation prowess for yourself, request a demo today!