Property consultant KMC Savills said the commercial real estate (CRE) sector in the Philippines is increasingly leveraging artificial intelligence (AI) to make smarter, faster, and more profitable decisions.
KMC Savills in a paper said investment managers and asset owners are deploying predictive analytics to assess various factors, including tenant creditworthiness and neighborhood economic indicators.
The paper cited platforms like Cherre and Reonomy aggregate disparate data sets, such as property records, demographic shifts and rent rolls, into actionable intelligence. This enables more nuanced underwriting and risk assessment, KMC Savills said.
According to the report, AI also plays a growing role in tenant engagement.
For example, smart building systems now analyze occupancy patterns, heating, ventilation and air conditioning (HVAC) usage and maintenance requests in real time. This data is increasingly used to improve tenant comfort, reduce energy consumption, and even anticipate turnover, the report said.
KMC Savills said AI chatbots and virtual assistants streamline lease inquiries, schedule tours, and even initiate contract processes, making property management more efficient and tenant-friendly.
The paper said investment firms are adopting machine learning models to dynamically price office and retail leases. By combining historical lease data with external variables such as market vacancy rates or nearby infrastructure projects, AI helps identify opportunities for higher yield or early renegotiation, it added.
AI is also making progress in ESG (environmental, social, and governance) performance, KMC Savills said, citing platforms like Deepki which track sustainability metrics and regulatory compliance, assisting real estate portfolios in meeting evolving environmental standards.
According to KMC Savills, Al also contributes to the due diligence process by automatically identifying compliance risks, estimating permitting timelines, and detecting potential community opposition through sentiment analysis conducted on local forums and social media platforms.
KMC Savills said as regulatory environments become increasingly intricate and sustainability targets become more pressing, Al will not merely serve as a tool but also assume the role of a strategic partner.
