Artificial Intelligence is rapidly reshaping Australia’s commercial property landscape. By blending data-driven insights with industry expertise, AI is increasingly driving efficiency, precision, and innovation across property valuation, leasing, operations, and investment.

1. Real-World Applications Today

  • Automated Valuation Models (AVMs)
    • : Property Valuation firms like JLL have been adopting AVM to manage risk and values leveraging real time data and integration of ESG principles, (JLL Insights).
    • Other examples include Value Australia platform which was developed via a collaboration between FrontierSI, UNSW, and PEXA.  They utilise enriched property data and AI algorithms to deliver real-time, highly accurate valuations at property, regional, or portfolio levels. PEXA Value Australia
  • Digital Twins & Smart Building Tech
    • Investa, in partnership with Willow and Microsoft Azure Digital Twins, uses digital twins to transform building management. These virtual replicas—such as at Melbourne’s 567 Collins Street—control over 57,000 items and 14,000 live data feeds, enhancing response times and transparency.
  • AI-Powered Strategic Platforms:
    • Archistar employs AI to analyse more than 25,000 data sources for development site potential, zoning, risks, and market opportunities—and even produce 3D generative designs.
    • JLL’s Falcon and Quants platforms amplify decision-making via AI-powered analytics; the Quants tool ingests data from over 1.25 million property transactions globally to help investors identify opportunities.
  • Operational Productivity Gains:
    • JLL reports that its in-house large language model, “JLL GPT”, cut a standard partnership memorandum process from 4–6 weeks to under five hours. Meanwhile, Colliers’ “Basking” system in Melbourne passively analyses employee Wi-Fi signals to inform space-use decisions—no additional sensors or manual counts required.

2. Industry Momentum & Investment

  • According to the Yardi/Property Council survey, one-third of real estate professionals anticipate AI will bring a “revolutionary impact,” yet an equal proportion have yet to adopt any AI solutions—highlighting a gap between expectation and action.
  • Proptech investment is surging. In Q1 2025, Australian startups raised A$44 million. Notable examples include PropHero—an AI-driven “Tinder for property” matching investors to ideal assets—and Coposit, facilitating off-the-plan purchases with low deposits.

3. What Lies Ahead

  • Seamless Digital Integration: AI will underpin smarter buildings, with real-time environmental controls, predictive maintenance, and reduced operational costs across portfolios.
  • Enhanced Investment Decisions: Investors will leverage AI for nuanced due diligence, scenario scenario planning, and climate- and infrastructure-informed forecasting.
  • New Professional Skills & Governance: As AI becomes central to operations, we’ll see roles like Chief AI Ethics Officer emerge, guiding fair and transparent decision-making.
  • Competitive Imperative: Those who treat AI as core infrastructure—not a novelty—will lead. Companies slow to adapt risk being eclipsed.

Conclusion

AI is not poised to replace professional expertise in Australia’s commercial property sector—it will enhance it. By blending trusted human judgment with powerful AI tools—like AVMs, digital twins, strategic analytics platforms, and AI models—industry leaders will unlock smarter valuations, streamlined operations, and forward-looking strategies. The future belongs to those who integrate AI with domain mastery—not stand apart from it.

How Redd Zebra Can Help

Redd Zebra has been instrumental in the development and early adoption of the digital twin and integrating predictive maintenance into practice.  For more information about how Redd Zebra can help, contact us on admin@reddzebra.com visit their website at www.reddzebra.com.