AI Is Reshaping CRE, Closing Deals in a Down Market

CHICAGO, IL – November 25, 2025 – The commercial real estate (CRE) sector is navigating a period of profound disruption. Record-high office vacancies, which some analysts place above 20%, and lengthening deal cycles are testing the resilience of traditional leasing models. In this challenging landscape, a digital transformation is underway, with artificial intelligence emerging as a critical tool not just for survival, but for gaining a decisive competitive edge.

A new industry report from RealtyAds, an AI-native advertising platform, titled "Filling the Gaps," sheds light on this shift. It argues that the age-old methods of broker outreach and relationship-based marketing, while still important, are no longer sufficient. As modern tenants conduct the majority of their research online before ever making contact, digital visibility has become the new frontline in the battle for occupancy.

The AI Imperative in a Strained Market

The pressures on CRE owners and brokers are immense. Office vacancy rates have climbed to historic highs, with Cushman & Wakefield reporting a U.S. average of 20.9% at the end of 2024. The industrial sector, though more resilient, is also seeing vacancy rates reach a decade high. This glut of available space, combined with economic uncertainty, means properties sit on the market longer, and deals that once took months now stretch out indefinitely.

Traditional leasing strategies struggle to cope with this scale. Broker bandwidth is finite, and conventional outreach often reaches only a fraction of the potential decision-makers in any given market. This performance gap is where technology is making its most significant impact. According to the RealtyAds report, with 88% of decision-makers researching online, properties that aren't digitally visible are effectively invisible.

"The right strategy today is digital-first, AI-enabled, and data-driven," stated Trevor Marticke, Founder of RealtyAds, in the report's announcement. This sentiment reflects a broader industry recognition that technology is essential to bridge the gap between high-quality assets and the audiences that need to see them. AI-powered platforms can automate and optimize digital marketing campaigns, ensuring that listings are consistently placed in front of the right brokers and potential tenants on platforms like LinkedIn and Google, where they spend their time. This sustained, targeted exposure is crucial for maintaining momentum across today's extended deal cycles.

From Gut Feel to Granular Data: Redefining Success

For decades, leasing success was often measured by closed deals, with the path to get there remaining a nebulous mix of networking, intuition, and persistence. The new wave of AI-driven PropTech is replacing this ambiguity with analytical precision, introducing sophisticated metrics that offer unprecedented visibility into the entire leasing funnel.

RealtyAds' report introduces a framework called "Full-Funnel Leasing Metrics," designed to quantify the impact of digital strategy at every stage. This includes:

• Tenant Reach: This metric tracks the number of targeted C-suite executives and decision-makers exposed to a property's digital presence. The platform reports reaching an average of 234 such individuals per asset each month, providing the broad, early-stage visibility that is critical for building a robust pipeline.
• Broker Reach: Instead of just guessing at engagement, this metric measures the share of relevant brokers actively interacting with listings. Clients using the platform have reportedly seen a 4.8-fold increase in broker engagement within the first 30 days, a significant lift that directly addresses the challenge of limited broker bandwidth.
• Deals Found, Advanced, and Closed (FAC): This framework moves beyond vanity metrics to track tangible pipeline progression influenced by digital marketing. By attributing value to deals at each stage—$5.56B Found, $10.5B Advanced, and $1.49B Closed to date, according to the company—leasing teams and owners gain a clear, data-backed understanding of their marketing ROI.

This focus on measurable outcomes empowers leasing teams to refine their strategies in real-time. A case study from San Francisco highlighted in the report shows how a brokerage team used an AI platform to track tenant interest, generating over 30 targeted touchpoints with top prospects over four months. This data-driven approach allowed them to maintain visibility and accelerate lease execution, demonstrating a shift from speculative outreach to strategic, informed engagement.

Crossing the Digital Divide

The adoption of AI is creating a clear and widening chasm in the commercial real estate industry. On one side are the firms that leverage technology to enhance efficiency, expand reach, and accelerate deal flow. On the other are those who risk being left behind, relying on outdated methods in an increasingly digital world. Research indicates a massive shift in the industry, with the number of CRE firms running AI pilots skyrocketing from just 5% to 92% in a mere three years.

The practical impact of this technology is not theoretical. In a case study from Brooklyn, an industrial ownership group faced a stalled deal with a key tenant. By using an AI-driven platform synced with their CRM, they re-engaged the prospect's decision-makers through targeted digital ads. Within two months, the deal was revived and signed—a testament to the power of consistent, data-informed follow-up in a noisy market. Firms leveraging these tools report tangible results, including a 30% faster lease execution and an 18% year-over-year increase in closed deals.

However, the path to AI adoption is not without its challenges. The industry faces hurdles including the high cost of implementation, a persistent talent gap for professionals skilled in data science, and the cultural resistance to change within traditionally-minded organizations. Furthermore, the effectiveness of any AI system is contingent on the quality and integration of data, a significant challenge in a sector historically characterized by fragmented information silos.

Despite these obstacles, the trajectory is clear. As AI becomes more accessible and its benefits more proven, its role will evolve from a competitive advantage to a foundational requirement for high-performance leasing operations. The ability to harness data to understand tenant behavior, optimize outreach, and prove marketing effectiveness will be the defining characteristic of the next generation of CRE leaders.