5 Leading Technology Trends in CRE Through the LightBox Lens
This is part two of a five-part blog series by LightBox’s Data and Technology Program in partnership with CREW Network. Given its broad breadth across key segments of CRE, LightBox is in a unique position to report on the trends taking root and how today’s CRE professionals are responding to them. These five trends are reshaping the landscape of our industry and unlocking myriad avenues for professionals to be more efficient, make smarter decisions, and reduce redundancy in their day-to-day operations.
The rapid rise of artificial intelligence (AI) is ushering in a new era for the appraisal sector. Appraisers today are tasked with managing an ever-expanding universe of property data while simultaneously delivering reports quickly and efficiently. AI provides tools that streamline these processes, allowing appraisers to analyze historical property data and use natural language algorithms to generate property summaries with precision.
Technology’s Role in Transforming Appraisals
Jessica Alford, senior project manager for Valuations at LightBox and a leader in the appraisal sector, highlighted the shift: “Technology is fundamentally reshaping the appraisal function by enabling us to harness vast amounts of commercial property data.” She explained that by integrating sales, leases, market trends, and appraisal values, appraisers can generate comprehensive reports that scale their business and build a reputation for quality.
AI’s ability to compile data from narrative reports and focus appraisers on analysis rather than data collection is especially critical. “Successfully meeting challenging delivery deadlines and maintaining cost efficiency hinge on the ability to adapt to these technological tools,” Alford added, emphasizing how essential these innovations have become for competitive appraisers.
As in many other segments of CRE, appraisers are challenged to embrace new technologies to offer competitive turnaround times. Alford added, “Staying ahead means leveraging technology not just for data access but for intelligent, actionable insights that drive better decision-making.”
Adapting to a Changing Landscape
Despite the many benefits, the appraisal sector is often criticized for its slow pace of advanced technology adoption. Director of Appraisal Services at Bank OZK, Jeff Garvin, addressed this challenge, noting that appraisers have traditionally relied on fixed sets of data variables when comparing properties. He emphasized the importance of evolving beyond this mindset: “Appraisers tend to look at things as if they have one tool in their toolbox, and if it’s a hammer, then everything is a nail.”
Garvin also touched on the risks AI poses when not applied intelligently: “Good appraisers are going to become great appraisers by using AI. Bad appraisers are going to become dangerous by using AI. It’s like handing a knife to someone—if you play with it the wrong way, you’re going to get cut.”
Candi Coleman, head of Lender Strategy at LightBox, echoed these concerns, noting that reliance on flawed data and the potential for AI hallucinations—instances when generative models produce outputs that are factually incorrect or nonsensical—pose significant risk. “The real danger lies in appraisers utilizing AI without fully understanding its risks and shortcomings, especially as the technology evolves,” she added. This reflects the broader concerns within CRE regarding the need for critical thinking to complement AI.
AI as a Tool, not a Replacement
At the LightBox PRISM 2024 conference, the keynote speaker Anat Baron and other experts discussed how AI tools like ChatGPT can serve as an assistant rather than a replacement for human expertise. According to Garvin, the real potential lies in AI’s ability to aggregate data and test it against benchmarks. “The ability to pull salient information out of hundreds of pages of data will optimize time and quicken our delivery,” he shared, while cautioning that AI is not a standalone solution.
Dana Wagner, Vice President and National Director of Due Diligence Services at Terracon Consultants, Inc., echoed this sentiment: “Innovations in technology like AI will serve as an assistant, not a replacement to people. These tools help get the best out of the information and provide some insights, but you definitely need the human element.”
Navigating Climate Risks with AI
In addition to improving efficiency, AI is playing a crucial role in helping appraisers assess climate-related risks. Becci Curry, Head of Quality & Risk Management at CBRE, addressed the challenges appraisers face when evaluating properties under the impacts of climate risk. She noted that the lack of standardized data points complicates these assessments: “Agreeing on standard data points for measurement and understanding their relationship to value assessment is essential.”
Curry explained that while short-term risks—such as higher insurance premiums or physical damage from natural disasters—can be solved like a math problem, long-term valuation impacts are far less clear. “The longer-term effects of climate change on property value are not well defined, making it a challenging space for appraisers to navigate.”
Leveraging extensive reach and distinctive insights, we closely monitor and report on the key trends shaping the CRE industry. Up next in this series is how technology is helping the CRE broker with efficiency. Follow this page for in-depth analysis of how these trends are influencing the future of CRE, including our previous blog in this series about large language models and how they unlock data connections and efficiency.
Subscribe To Insights
Be the first to get the latest news, updates and insights from LightBox.
