Background Mobile
CRE AI IconReal Estate · CRE AI

AI in Commercial Real Estate

Commercial real estate AI for owners, investors and asset managers — faster deal screening, underwriting figures pulled from offering memoranda and rent rolls, and portfolio signals caught early.

WhatsAppMessage on WhatsApp
AI in Commercial Real Estate Architecture
Deal screeningUnderwriting inputsLease abstraction
Portfolio anomaliesReport drafts

TRUSTED BY TEAMS

letest.ai
Propmodel
aloomah
yeeld
Nostromarkets
Pharmy
/// INTRODUCTION

AI in commercial real estate is mostly about volume. Deal teams read hundreds of offering memoranda to close a handful of deals, and asset managers track portfolios across dozens of rent rolls and reports.

Sodio builds AI for commercial real estate that does the first pass — extracting figures, screening deals against your criteria, flagging portfolio changes and drafting reports — so analysts spend their time on judgement rather than retyping. Commercial real estate AI should speed decisions up, not make them.

Commercial real estate high-rise analysis

/// WHAT WORKS, AND WHAT IS HYPE

What AI Does Well in CRE — and What It Does Not

AI does not find the deal. It clears the pile so your analysts can.

Works today

  • Extracting rent roll, T-12 and offering memorandum figures into an underwriting model
  • First-pass screening of deals against your investment criteria
  • Flagging arrears, cost spikes and occupancy changes across a portfolio
  • Drafting investment committee memos and investor reports for review
  • Surfacing lease expiries and tenant risk early

Still more promise than practice

  • Predicting cap rates or timing the market
  • AI making investment decisions
  • Replacing a valuer or an ARGUS model
  • Autonomous asset management
  • Anything decided without a person checking it

/// AI APPLICATIONS

AI Tools for Commercial Real Estate Real Estate

Deal screening

Deal screening

Underwriting inputs

Underwriting inputs

Lease abstraction

Lease abstraction

Portfolio anomaly detection

Portfolio anomaly detection

Tenant risk and renewal

Tenant risk and renewal

Valuation between valuations

Valuation between valuations

Investor and committee drafts

Investor and committee drafts

Operating cost and energy

Operating cost and energy

Market research

Market research

/// WHERE AI FITS IN A DEAL

From Offering Memorandum to Investor Report

STAGE 1 - SOURCE

Offering memoranda arrive in volume

Reading the pile and deciding which deals are worth pursuing

STAGE 2 - SCREEN

Each deal scored against your criteria

Choosing which deals to take forward

STAGE 3 - UNDERWRITE

Rent roll and T-12 figures extracted into your model

Setting the assumptions and judging the returns

STAGE 4 - DILIGENCE

Leases abstracted and checked against estoppels

Negotiating and deciding to close

STAGE 5 - OPERATE

Portfolio anomalies and tenant risk flagged

Deciding what to do about them

STAGE 6 - REPORT

Committee and investor reports drafted

Reviewing, editing and signing off

/// THE DOCUMENTS BEHIND CRE AI

The Documents Behind CRE AI

Machine learning in commercial real estate succeeds or fails on documents that were never designed to be read by a machine.

Offering memoranda
Used forScreening and first-pass underwriting
The usual problemEvery broker lays them out differently
Rent rolls
Used forIncome, occupancy and lease expiry
The usual problemEvery property manager uses their own format
T-12 operating statements
Used forOperating costs and net operating income
The usual problemCharts of accounts differ from one owner to the next
Leases and estoppels
Used forDiligence and ongoing lease data
The usual problemAmendments and side letters change the terms
Property manager reports
Used forPortfolio monitoring
The usual problemArrive monthly as PDFs rather than data
Market reports and comparables
Used forResearch and assumptions
The usual problemLicence terms limit how the data can be used

/// AI IN UNDERWRITING

AI in Commercial Real Estate Underwriting

Most of an analyst’s time on a new deal goes on getting the numbers into the model, not on judging them. That is the part AI is good at.

Reading the offering memorandum
What AI doesPulls out the property facts, income and the broker's assumptions
What the analyst keepsDeciding whether the story holds up
Entering the rent roll
What AI doesExtracts tenants, rents, dates and escalations into the model
What the analyst keepsJudging tenant quality and rollover risk
Normalising the T-12
What AI doesMaps operating lines to your chart of accounts
What the analyst keepsSetting the operating assumptions
Checking the numbers
What AI doesFlags figures that disagree between documents
What the analyst keepsResolving them with the broker
Writing the memo
What AI doesDrafts the committee memo from the model and documents
What the analyst keepsMaking the case, and the recommendation

/// COMPARE

Three Ways to Bring AI Into CRE

Works with your underwriting model
AI in your CRE platformOnly within the platform
Standalone CRE AI toolsUsually exports to a standard format
Custom AI on your dataWrites into your own template
Learns your criteria
AI in your CRE platformRarely
Standalone CRE AI toolsPartly
Custom AI on your dataBuilt around your investment criteria
Confidential deal documents
AI in your CRE platformHeld by the platform vendor
Standalone CRE AI toolsSent to another vendor
Custom AI on your dataKept in an environment you control
Covers your whole workflow
AI in your CRE platformThe platform's part of it
Standalone CRE AI toolsOne task
Custom AI on your dataWherever you need it
Cost model
AI in your CRE platformIncluded or an add-on
Standalone CRE AI toolsSubscription per user
Custom AI on your dataBuild cost, then you own it

/// COST AND TIMELINE

How a CRE AI Project Runs, and What Drives the Cost

A pilot on a batch of deals you have already underwritten typically runs within 30 days, compared figure by figure with your analysts’ work. If it holds up, a production version follows within 90.

30 daysPilot on deals already underwritten
90 daysProduction version

The cost moves with six things: how varied your documents are; how closely it must work with your underwriting model; how many portfolio data sources are involved; the review workflow; private hosting for confidential deal data; and how many applications are built.

/// FAQ

Frequently Asked Questions

Mostly to clear the volume of reading that slows deal and asset teams down. It extracts figures from offering memoranda, rent rolls and operating statements, screens deals against investment criteria, abstracts leases, flags changes across a portfolio and drafts reports. The decisions stay with people; AI gives them more time to make them.

It can do the first pass. It can pull the rent roll and operating figures into your model, check them for inconsistencies and set out a first view against your criteria, in minutes rather than hours. Setting assumptions, judging risk and deciding to proceed remain the analyst's and the committee's job — and should.

Only if it is built for it. Offering memoranda usually arrive under a confidentiality agreement, and uploading them to a public AI tool may breach it. Models for this work should be hosted privately, so documents are never used to train anyone else's model and never leave the environment you control.

Yes. Extracted figures are written into your existing template rather than replacing it. The model stays yours and your team keeps working the way it does now — with the retyping removed.

Not reliably, and it is worth being wary of anyone who says otherwise. AI is good at reading documents, spotting patterns in your own portfolio and summarising market research. Forecasting where yields are heading is a different problem, and no model has solved it.

By testing it on deals you have already underwritten. A pilot runs a batch of past offering memoranda and rent rolls through the system and compares the results with what your analysts produced — figure by figure, and in time taken.

/// RELATED SERVICES

Related Industries and Services

Routes where scope overlaps with real estate software.

/// GET STARTED

Start With One Deal Your Analysts Already Underwrote

Send us a batch of past offering memoranda and rent rolls. We will benchmark AI extraction against your team's numbers and show you, free, where it matches, where it disagrees, and what it would take to integrate into your model.

Contact Us