In CRE most budgets are already stretched. Leasing incentives, broker fees, property improvements, operations, every dollar has a job. Adding AI to the mix can feel like a stretch, but it doesn’t need to feel like adding a luxury line item. It’s about integration, prioritization, and seeing AI as a lever, not a burden.
Digital + Traditional: A Balanced Playbook
Traditional leasing investments such as signage, direct mail, print ads, and event sponsorships are proven tools. However, in today’s world, a majority of prospective tenants and investors start their journeys online. If your assets aren’t easily discoverable on digital platforms, that’s lost potential.
In CRE, digital visibility isn’t a nice-to-have; it’s a necessity. As of this year, the national U.S. office vacancy rate stood at 19.7%, and that vacant space is a daily cost. Digital tools, especially AI-enhanced platforms like Realtyads, can help target high-propensity tenants faster, reduce time-to-lease, and improve market reach.
The Real Cost of Waiting
When you delay AI adoption, the opportunity cost stacks quickly. Each unleased square foot generates no revenue but still incurs maintenance, taxes, utilities, and debt servicing. At the same time, competitors using AI can surface their assets to prospects more quickly, dynamically fine-tune pricing, and streamline operations.
Morgan Stanley projects that AI-driven innovations could yield $34 billion in efficiency gains across real estate by 2030. That’s not hype, it’s the scale of opportunity in this shift.
Carving Out Budget Space for Innovation
Making room for AI doesn’t require an overhaul. The first step is to audit your base spend and identify underperforming investments that no longer justify their cost. Reassigning just a portion of those dollars to digital initiatives creates an entry point for growth.
From there, start small with pilot projects and measure rigorously against KPIs like leasing velocity, cost per lead, and visibility lift. Early wins help build confidence and justify scaling investment. Some ownership teams also set aside a small, flexible “innovation fund” within their leasing budget, adjusting allocation cycle by cycle as results come in.
What This Means for CRE Teams
AI doesn’t replace people; it amplifies them. Brokers, asset managers, marketers, and leasing teams remain essential, but AI equips them with sharper insights and stronger tools. By making room for digital investment today, you position assets to decrease downtime, improve leasing velocity, and drive stronger returns without destabilizing your core functions. The teams that prioritize digital now will have the edge tomorrow.
