Generative AI is changing how the world works, and the property industry is no exception. GNP Realty and its development and acquisitions arm, The One Companies (ONE), are known for taking an innovative approach to business operations, notably in implementing cutting-edge technologies to benefit owners and investors.
“Machine-learning technologies have been used in our business for years,” says John Gagliardo, founder and managing partner for ONE. “These tools work in the background, and the public is largely unaware of their presence, but they add significant value in terms of productivity.” An example is ONE’s customized investor quarterly reports, which are automatically generated and deposited into investor-specific folders on a secure portal, followed by an automated email notifying investors.
The advent of OpenAI’s ChatGPT brought AI to individual users’ fingertips and, subsequently, to the forefront of work management conversations. Productivity remains the focus, yet the property and construction sector has been slow to implement the technology in a meaningful way—perhaps because the market has been slow to adapt the technology for the property industry.
“On the development side, we hear product marketing that purports some AI-enabled tool will put real estate analysts out of business, but we’ve yet to see a product that solves a need we have to solve,” says Gagliardo. “Financial analysis is key to acquisitions and validating that investment for our clients and investors. While AI can speed that process, if you get it wrong, you have a big problem, so any AI-fueled analysis demands careful human review.”
Gagliardo also observes that, like with most technology, the early AI marketplace is fragmented. “There are lots of tools, but they don’t necessarily integrate well,” he says. “Consolidation into a single platform will happen, but that takes time. Further, no one tool perfectly manages all tasks, so you need multiple products which may or may not work together.”
Galigardo anticipates the market will evolve, and AI will soon be a part of GNP’s and The One Companies’ toolbox. “I’m excited about some of the developments around space management,” he says, citing software that allows potential tenants to test fit space in a fraction of the time it traditionally takes. “AI will significantly streamline feasibility studies and other aspects of due process, allowing a deal to come together much more quickly than today. These tools can also reduce costs, which is a win for all parties and good for the market.”
Areas to watch and user considerations
Beyond financial analysis for owners and investors, watch for market growth around AI software paired with hardware, providing real-time data and insights that inform decision-making for building construction. AI-enabled technology won’t replace workers, but it will make them more efficient, a powerful value-add given today’s skilled labor shortages and an aging workforce.
“Increased efficiency means greater productivity,” says Gagliardo. “Higher productivity lowers operational costs and improves the profitability for owners and investors. We’re open to any technology that positively impacts our productivity and our clients’ profitability.”
“Generative AI has the potential to reorient this industry, but we’re watching to see what happens with large companies and other early adopters before exploring ways to adapt it for our use as a family of small companies offering wholistic solutions for building owners and investors,” he says.
Gagliardo’s approach to incorporating AI into business operations will be to start small and experiment to learn how AI can enhance productivity without putting an entire project at risk. “Generative AI is the next revolution of advancing humanity; it just still requires human oversight, for now,” he says. “To deliver the quality GNP and ONE are known for means that the human touch will remain a fundamental building block of our business strategy.”
