Inside CRETech New York: Six Ways AI is Transforming Real Estate Strategy

This week, I made my annual trip to CREtech in New York to learn more about AI and what is new in the proptech space. Over two days, CRETech brings together CRE executives, industry operators, proptech vendors, and venture capitalists to network, hear about real estate tech trends and discover the most innovative startups. For me, there was a noticeable change in attendance this year, with more tech firms offering real solutions to core problems, and fewer small AI-enabled start-ups with no customers who were essentially providing an interface and prompting wrapper on top of old LLM models.  

There were six takeaways I received from the experience: 

A Strategic Shift from Building to Buying is Happening

While not tech-related, three CEOs from large operators discussed how equity remains extremely difficult to source, leading operators and investors to pursue acquisitions over ground-up development. With replacement costs high and financing constrained, acquiring below replacement cost has become the preferred growth strategy. ROI for new construction simply doesn’t pencil in most markets. 

Vertical Integration is Being Revolutionized as High-Touch Service Merges With High-Tech Systems
High-touch service powered by high-tech systems is redefining vertical integration, as operators move toward in-house operations for greater control and seamless tenant experiences. 

Operators are rethinking their reliance on third-party service providers. Many are bringing operations in-house to deliver a more seamless and controlled tenant experience, supported by technology. The leading theme? “You can buy size, but you have to build scale.” 

• Size = portfolio growth 

• Scale = integrated systems, data infrastructure, and AI enablement 

Firms that combine high-touch service with high-tech systems will create defensible advantages in customer satisfaction and operational efficiency. 

AI is Reshaping Every Layer of Real Estate
AI will transform up to 95% of jobs in CRE, though not necessarily eliminate them. The winners will be those who experiment early and learn fast. 

Applications of AI across the enterprise include the following: 

• Customer interactions – virtual leasing assistants and 24/7 tenant support 

• Decision support – data-driven underwriting and investment insights 

• Back-office automation – streamlining accounting, lease abstraction, and reporting 

• Enterprise support – internal knowledge management and AI copilots 

However, firms emphasized that AI success depends on data quality. Many pilot projects failed not due to AI itself, but because core data infrastructure wasn’t ready or they did not understand the results. 

Multifamily Leaders Are Leaning Into AI
Large multifamily (MF) operators like AvalonBay are applying AI to enhance the resident experience: 

• AI-powered chat for 24/7 tenant interactions 

• Predictive maintenance and resident retention tools 

• Measuring NPS score changes pre- and post-AI adoption 

• Identifying specialized bulk tasks where AI can automate 

AI is Transforming Construction Technology and the Built Environment
AI’s biggest impact is emerging before the first shovel hits the ground. In early design and pre-construction, AI tools are optimizing MEP (mechanical, electrical, plumbing) layouts and identifying off-site modular opportunities. One developer cited a 10% reduction in piping and turns, lowering costs and improving long-term energy efficiency. 

The implication? AI solutions will achieve faster, more sustainable builds with tighter collaboration between developers, architects, engineers, and suppliers. 

Industry Collaboration and the Human Factor Are Essential Drivers of Progress
Despite the tech surge, CRE remains a people business. Speakers underscored that AI should augment, not replace, human expertise. Industry-wide collaboration and shared learning are essential to unlocking AI’s potential at scale. 

“Start small, develop trust, and learn together” was the recurring mantra. 

Summary 

The integration of new tech trends across the commercial real estate sector is accelerating innovation, efficiency, and collaboration from project inception through ongoing operations. While it is reshaping the industry’s landscape, the value of human expertise and partnership remains at the forefront. As Slatt Capital continues to serve as a trusted advisor and financier, now is the time to explore and embrace AI-driven solutions to deliver even greater value to clients and partners. We invite you to connect with our team to explore how Slatt Capital can help you leverage these advancements for smarter investments and enhanced asset performance.