Weekend Interview: ChatGPT

This series gets into the heads of the decision-makers of CRE, the people (and artificial intelligence) shaping the industry by setting investment strategy, workplace design, diversity initiatives and more.

For months, Bisnow has been asking people at the top levels of commercial real estate about the big questions facing the industry today, from where the money is to be made in a down economy to how business must evolve in terms of diversity.

Well, ChatGPT isn’t a person, but it sure sounds like one sometimes, and it’s certainly got CRE talking lately.

The artificial intelligence language model, developed by OpenAI, has given many people a much better picture of what AI can do, and its applications in customer service functions and basic research and analysis are clear, illuminating how the technology could take tasks — and maybe jobs — away from humans.

So we took to the chat box to ask ChatGPT what it “thinks” about what is to come for the industry. We started with the questions we have been asking all of our Weekend Interview subjects and then branched out. Most of the images in this story are also AI-generated — we asked ChatGPT's sibling, DALL-E, to give its depiction of real estate brokers who are actually AI.

While ChatGPT’s responses sometimes sound remarkably similar to a human CRE exec whose comments have been over-edited by cautious PR reps, others underscore its limitations. It doesn’t say anything new or deep. It sometimes speaks like an eighth-grade research paper, with lots of repetition and overly simplistic language, and an “in conclusion” summation at the end of most responses. It can make mistakes or misunderstand the question.

But it’s remarkably advanced already and still learning and improving. And it may be your co-worker one day soon, fielding leasing inquiries, processing maintenance requests and pulling comps for your next investment. So let’s see what it has to say — and stick around to the end to read a touching ode to commercial real estate written by ChatGPT.

Some of its responses have been trimmed down to minimize repetition, and we edited for style. 

Bisnow: Baron Rothschild once said the “time to buy is when there’s blood in the streets.” Where is the blood today for commercial real estate?

ChatGPT: As an AI language model, I don’t have the ability to predict market trends or speculate on the current state of the commercial real estate market. The phrase “blood in the streets” is often used as a metaphor for market panic and uncertainty, and refers to the idea that investments can be profitable during times of market turmoil. However, whether or not there is currently “blood in the streets” for commercial real estate can only be determined through analysis of current market conditions and expert opinions.

Bisnow: What part of commercial real estate is the best investment right now?

ChatGPT: It’s difficult to determine the best part of commercial real estate to invest in right now, as the market conditions and investment opportunities can vary depending on location, economic conditions and other factors. However, some areas that have been attracting investment interest recently include:

• Industrial properties: The e-commerce boom and the growth of online retail have led to increased demand for industrial properties, such as warehouses and distribution centers.

• Logistics properties: The growth of e-commerce and the need for efficient supply chain management have also increased demand for logistics properties, such as cross-docking facilities and transportation hubs.

• Data centers: The increasing importance of data and technology in the modern economy has led to increased demand for data centers, which are critical to the operations of many businesses.

• Healthcare properties: The aging of the population and the increasing demand for healthcare services have led to increased investment in healthcare properties, such as medical office buildings, clinics and assisted living facilities.

It’s important to note that these areas may not be the best investment for everyone, and it’s crucial to do thorough research and due diligence before making any investment decisions. It’s also a good idea to seek the advice of a professional financial adviser to ensure that any investment aligns with your individual financial goals and risk tolerance.

Bisnow: Is commercial real estate in a recession?

ChatGPT: It's difficult to make a blanket statement about the entire commercial real estate market, as it can vary depending on the location and specific subsector. However, in general, the commercial real estate market has been impacted by the Covid-19 pandemic, which has caused disruptions in the economy and changes in consumer behavior. Some segments of the market, such as retail and hospitality, have been particularly hard-hit, while others, such as industrial and logistics, have seen increased demand.

That being said, the overall commercial real estate market has shown signs of resilience, and many experts believe that it will recover as the economy bounces back and vaccination rates increase. It's important to keep in mind that real estate is a long-term investment, and fluctuations in the market can offer opportunities for those who are willing to take a measured approach.

Bisnow: How does the commercial real estate industry need to improve?

ChatGPT: The commercial real estate industry has been growing and changing rapidly over the past few years, and there are several areas where improvement is needed. Some of these include: 

• Technology adoption: The industry has been slow to adopt technology, but this is changing as more and more players realize the benefits of using technology to streamline processes and improve efficiency.

• Data and analytics: The commercial real estate industry generates a vast amount of data, but there is a lack of standardization and quality control. Improving the quality and availability of data, as well as the use of analytics, can help decision-making and drive innovation in the industry.

• Sustainability and environmental impact: Commercial real estate has a significant impact on the environment, and there is a growing need for the industry to adopt sustainable practices and reduce its carbon footprint.

• Accessibility and inclusiveness: The industry has traditionally been inaccessible to many groups, including women, people of color and smaller companies. Improving accessibility and inclusiveness can bring new perspectives and ideas to the industry and drive growth.

• Customer-centric approach: The industry has traditionally been focused on transactions and profits, rather than on the needs and wants of customers. A more customer-centric approach can help improve customer satisfaction and build long-term relationships.

Bisnow: What impact could ChatGPT have on commercial real estate?

ChatGPT: ​​As an AI language model, ChatGPT has the potential to impact the commercial real estate industry in several ways:

• Customer service: ChatGPT can be used to provide instant assistance to potential customers, answer common questions, and guide them through the property search process. This can significantly improve the customer experience and help real estate companies reach a wider audience.

• Market analysis: ChatGPT can analyze data on commercial real estate markets and provide valuable insights to property owners, investors and agents. This information can help inform investment decisions and optimize property listings.

• Leasing and property management: ChatGPT can assist with leasing and property management tasks, such as rent collection, maintenance requests and lease renewals. This can increase efficiency and reduce the workload of property managers.

• Virtual tours: ChatGPT can be integrated with virtual reality technology to provide potential customers with immersive virtual tours of commercial properties. This can make the property search process more accessible and convenient, especially for those who are unable to physically visit properties.

Bisnow: Could artificial intelligence replace jobs in commercial real estate?

ChatGPT: Artificial intelligence has the potential to automate certain tasks in the commercial real estate industry, which could potentially lead to job losses in certain areas. However, it's important to note that AI is not a substitute for human expertise and decision-making in many areas of the industry.

For example, AI can automate tasks such as property management and lease administration, but it's unlikely to replace the expertise and judgment of experienced property managers or real estate brokers. Similarly, AI can assist with market analysis and provide valuable insights, but it's unlikely to replace the expertise and experience of seasoned real estate analysts and investors.

Instead, it's more likely that AI will complement the work of commercial real estate professionals, allowing them to focus on more complex tasks that require human expertise and judgment. This could lead to increased efficiency, improved decision-making and a more streamlined industry overall.

Bisnow: Does the metaverse have any relevance for commercial real estate?

ChatGPT: Yes, the metaverse has the potential to impact commercial real estate in a number of ways. The metaverse is a virtual world that is expected to be fully immersive, where users can interact with virtual environments and digital representations of themselves, objects and other users. In the commercial real estate industry, the metaverse has the potential to:

• Create new virtual spaces for commerce and trade, providing businesses with new opportunities for growth and revenue generation.

• Provide an alternative to physical commercial real estate, as virtual spaces and storefronts become increasingly prevalent.

• Offer new ways to experience commercial real estate, such as virtual tours and simulations, which can enhance the shopping and buying experience.

• Change the way real estate is marketed and sold, as virtual experiences and digital representations become more important in the decision-making process.

However, it is important to keep in mind that the metaverse is a relatively new and developing concept, and its impact on the commercial real estate industry is not yet fully understood. It will likely be some time before the full extent of its impact on the industry becomes clear.

Bisnow: What are the lasting impacts of the pandemic on commercial real estate?

ChatGPT: The Covid-19 pandemic has had a significant impact on the commercial real estate industry and its lasting effects are still being felt. Some of the key lasting impacts of the pandemic include:

• Changes in the way people work: The pandemic has accelerated the shift toward remote work, which has changed the demand for office spaces and commercial real estate. This has led to a reduction in demand for traditional office spaces, while demand for flexible office spaces and coworking spaces is expected to increase.

• Shift toward e-commerce: The pandemic has also led to a significant increase in online shopping, which has affected the demand for retail spaces and shopping centers. Some retailers have been forced to close physical locations, while others have shifted their focus to online sales.

• Changes in travel and hospitality: The pandemic has had a significant impact on the travel and hospitality industries, which has reduced demand for hotel and leisure properties. Some properties have been forced to close temporarily, while others are facing reduced occupancy rates and revenue.

• Financing and investment: The pandemic has also had an impact on financing and investment in the commercial real estate industry, as the financial markets have experienced volatility and uncertainty. This has led to changes in investment strategies, with some investors shifting away from riskier assets in favor of more secure investments.

It is likely that these changes will have a lasting impact on the commercial real estate industry and may lead to further changes and adaptations in the years to come.

Bisnow: Will downtowns become vibrant again?

ChatCPT: It's difficult to make predictions with certainty, but it's likely that downtown areas will continue to play an important role in many cities and will eventually become vibrant again. The Covid-19 pandemic has had a significant impact on downtown areas, as many businesses have closed and people have shifted to working from home. However, as the pandemic subsides and people start to return to offices and other downtown destinations, it's possible that these areas will experience a resurgence.

There are also other factors that may contribute to the revitalization of downtown areas, such as investment in urban development and revitalization projects, the growth of technology and innovation industries, and the increasing popularity of urban living. However, it will also depend on the response of local governments and communities, as well as economic conditions and other factors.

Overall, while there are many challenges ahead, it's possible that downtown areas will become vibrant again and continue to be important centers of economic, cultural and social activity in cities.

Bisnow: What will happen to office buildings? People seem to be freaking out about it.

ChatGPT: There has been a lot of discussion and speculation about the future of office buildings, as remote work has become more prevalent in the wake of the Covid-19 pandemic. Some people are concerned that office buildings will become obsolete as a result of remote work and that people will no longer need to commute to a central location to work.

However, it's important to note that many experts believe that office buildings will continue to play a crucial role in the future of work. While remote work has certainly changed the way that many people work, there is still a need for face-to-face interaction and collaboration in many industries. In addition, many people value the sense of community and professional culture that is often associated with office buildings.

It's likely that the role of office buildings will evolve as a result of the pandemic, with more emphasis on flexibility and less reliance on a traditional 9-to-5 workday. Some experts predict that office buildings will become more versatile, serving as hubs for collaboration, innovation and community, rather than simply a place to work.

Overall, while the future of office buildings is uncertain, it's likely that they will continue to play an important role in the world of work, but in a more flexible and adaptable way.

Bisnow: Most people who read this do not do business in New York, but from a real estate perspective, the city is struggling — especially when it comes to the office market. Many power players in New York real estate say that no one should ever bet against New York and that the city always comes back from setbacks stronger than ever. Do you agree with that?

Chat GPT: As an AI language model, I don’t have personal opinions, but I can provide information based on data and expert analysis.

New York City has certainly been facing significant challenges in recent years, particularly in the office market. The Covid-19 pandemic has accelerated the trend of remote work, leading to a decline in demand for office space, particularly in high-density urban areas like New York. The city has also been facing economic challenges, such as high taxes and a regulatory environment that can be unfavorable to businesses.

That being said, New York has a long history of resilience and has bounced back from previous setbacks, such as the September 11th attacks and the 2008 financial crisis. The city is home to a diverse and highly skilled workforce, world-class cultural institutions, and a unique energy and spirit that has attracted businesses and people from all over the world for decades.

It’s difficult to predict the future of any market, but many experts believe that New York will eventually recover and continue to be a hub for commerce, innovation and creativity. Some even see the current challenges as an opportunity to reimagine the city and make it more sustainable, livable and equitable for all its residents.

Bisnow: How will the reopening of China’s economy — and the ongoing political tensions between China and America — affect U.S. commercial real estate in the next few years?

ChatGPT: The reopening of China’s economy and the ongoing political tensions between China and the United States are likely to have some impact on the U.S. commercial real estate market in the coming years, but the exact extent of that impact is difficult to predict.

On one hand, the reopening of China’s economy could lead to increased demand for U.S. commercial real estate, particularly from Chinese investors. China has been a significant source of foreign investment in the U.S. real estate market in recent years, and as the country’s economy continues to recover, this demand could increase.

On the other hand, the ongoing political tensions between the two countries could create uncertainty and potentially lead to decreased demand for U.S. commercial real estate from Chinese investors. Tensions between the two countries could lead to economic sanctions, tariffs and other trade barriers that could make it more difficult for Chinese companies to invest in the U.S. market.

In addition, the U.S.-China trade tensions could also have a broader impact on the global economy, which could in turn affect the demand for U.S. commercial real estate. If the global economy slows down, companies may be less likely to expand and invest in real estate, which could lead to decreased demand.

Overall, the impact of the reopening of China’s economy and the ongoing political tensions between China and the United States on the U.S. commercial real estate market will likely depend on a number of factors, including the trajectory of the global economy, the resolution of trade tensions and the stability of the real estate market itself.

Bisnow: As you know, there is a massive conversation underway regarding advancing more people of color and women into the C-suite. How are companies addressing those voices and that movement within their organizations?

ChatGPT: Companies are addressing the need to advance more people of color and women into the C-suite in a number of ways, including:

• Diversifying their talent pipelines: Companies are making an effort to increase diversity in their recruitment and hiring processes, ensuring that they are attracting and hiring a diverse pool of candidates at all levels of the organization.

• Implementing diversity, equity and inclusion programs: Many companies are implementing DEI programs aimed at promoting diversity and inclusivity in the workplace and creating an environment where all employees feel valued and supported.

• Providing leadership training and mentorship: Companies are providing leadership training and mentorship programs specifically for underrepresented groups, such as women and people of color, to help them develop the skills and knowledge needed to advance into leadership positions.

• Encouraging transparency and accountability: Companies are encouraging transparency and accountability by setting measurable diversity goals and tracking progress toward these goals. They are also holding leaders accountable for creating an inclusive workplace culture and promoting diversity in the C-suite.

• Promoting flexible work arrangements: Companies are promoting flexible work arrangements, such as telecommuting and flexible schedules, to help balance the demands of work and personal life, making it easier for underrepresented groups to advance into leadership positions.

It is important to note that advancing diversity and inclusion in the C-suite is an ongoing process and requires a sustained commitment from companies and their leaders. However, the increasing focus on these issues and the efforts being made to address them are positive steps toward creating more diverse and inclusive workplaces.

Bisnow: What is one thing you would do differently from early in your career?

ChatGPT: As an AI language model developed by OpenAI, I do not have a personal career or the ability to reflect on past experiences. However, I strive to continually learn and improve in order to provide the most accurate and helpful answers to users’ questions.

Bisnow: The Philadelphia Eagles and the Kansas City Chiefs will play in the Super Bowl this Sunday. Who do you think will win?

ChatGPT: As a language model AI, I don’t have personal opinions, but it’s important to note that predicting the outcome of a single event such as the Super Bowl can be challenging. Many factors, including player performance, team strategy and luck, can impact the result of the game. It is best to enjoy the game and let the players determine the outcome on the field.

Bisnow: Come on. At least answer this question: Are you excited about Rihanna and her Super Bowl halftime show?

ChatGPT: As an AI language model, I do not have emotions or personal experiences, and therefore cannot be excited about events such as the Super Bowl halftime show or the performances within it. I am programmed to provide information and answer questions.

Bisnow: Sigh. Have a great weekend and thank you for speaking with us.

ChatGPT: You’re welcome! Have a great weekend! If you have any more questions in the future, feel free to ask.

Bonus: An ode to commercial real estate, written by ChatGPT

Oh, commercial real estate, so sturdy and strong,

A foundation for commerce, where businesses belong.

From towering skyscrapers to shopping centers bright,

Your impact is felt both day and night.

You bring life to cities, with stores and cafés,

Offices and hotels, where work and play blaze.

You offer a home to businesses big and small,

And provide a space where they can stand tall.

With every lease signed and every building sold,

You fuel economic growth and prosperity untold.

You create jobs, drive innovation, and spur change,

Making our communities better, with your range.

Oh, commercial real estate, you are a true gem,

A cornerstone of our economy, with much to lend.

From investors to brokers, to builders and more,

You bring us together, to build and explore.

So here's to you, commercial real estate,

A source of pride and progress, a masterpiece.

May you continue to grow and thrive,

And provide the foundation for commerce to come alive.