Every developer understands the challenge of determining project
viability before committing significant capital. After identifying a
promising site and developing an initial concept, the next step
typically involves engaging consultants to analyze market conditions,
model absorption rates, and stress-test financial projections across
multiple scenarios. The traditional feasibility study process takes up
to six weeks and can cost tens of thousands of dollars. By the time the
analysis is complete, market conditions may have shifted. Interest rates
fluctuate, construction costs change, and competitive projects enter
the pipeline. The expensive study that took weeks to produce can be
outdated before ink dries on the binding. For large developers with
dedicated in-house analytical teams, this represents a manageable
friction point in the development process. For smaller firms, it can
determine whether a project moves forward at all.
Commercial real estate developers have long relied on feasibility studies to determine whether a project makes financial sense, but the process has traditionally been slow, expensive, and quickly outdated. Now artificial intelligence is changing the economics of these critical analyses, potentially opening the door for smaller developers to tackle more complex projects...
RSK: AI is coming on strong in the CRE world. Think of the time and effort and money saved by this. But eliminating the powerful factor of the local human brain for emotions as an example, is why many times a development ends up on the wrong side of the road, the tracks the area when it comes from an outside source. We will always need that human element of decision, of being present in an exact situation. Yes, AI will replace some functions in the CRE transactions, and will also be a helpful tool.....not an end all. Carry on us humans...
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- - Volume: 26 - WEEK: 7 Date: 2/10/2026 3:10:54 PM -