Using AI for Sustainability

September 29, 2025 | By: CRE Insight Journal
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Businesses are being reshaped by artificial intelligence, notably through gains in sustainable practices. It’s assisting them – whether lowering building energy use, streamlining deliveries, or forecasting ecological hazards – to curtail expenses alongside satisfying demands from investors, watchdogs, moreover occupants concerning their impact on the planet. 

Smarter Buildings: AI and Energy Efficiency 

Structures gulp down close to 40 percent of the world’s energy, so saving power within their walls feels crucial. Clever systems – using data gathered from heating, cooling, lights, alongside who’s actually in the space – are beginning to curtail that waste. 

Buildings using smart data tools – the U.S. Department of Energy says so – can cut energy use quite a bit, somewhere between one-tenth yet up to one-fifth. Data centers cut cooling energy by 40% – DeepMind showed how using smart software. Now, building managers do likewise, adjusting systems to save money while keeping people comfortable. 

Predictive Maintenance: Reducing Waste and Extending Lifespans 

Equipment upkeep gets a boost from artificial intelligence. Instead of routine checks that might swap parts too soon – or miss problems until they happen – AI looks at live information, spotting trends to predict precisely when things require attention. 

“Since entering the commercial real estate industry in 2016, I’ve seen how artificial intelligence has transformed time-consuming processes into streamlined solutions,” said Shell Turner, property manager with Bridger Properties. “This is where the technology truly shines. For engineers, AI now uses real-time weather data to adjust HVAC systems and sprinkler schedules, helping save both energy and water while taking tedious manual tasks off their to-do lists. On the administrative side, AI language models have taken much of the stress out of drafting tenant notices, saving office staff countless hours. More recently, I’ve begun working with AI-powered lease abstracting tools, which have made that process exponentially faster and more accurate.” 

Rather than letting things break down, this method minimizes scrap, keeps machines running longer, also sidesteps power drain from sluggish setups. Experts suggest anticipating issues could lower upkeep expenses between ten to forty percent while shrinking interruptions as much as half. 

Smarter Resource Management 

Beyond power, artificial intelligence finds uses elsewhere. For instance, it spots water leaks instantly, also helping businesses water lawns smarter – a big help where water runs low. Similarly, clever sorting machines now recycle better because they recognize materials more reliably than people do. 

Cutting expenses is a benefit, however these tools additionally empower property holders alongside those who rent from them to achieve environmental, social, governance goals – goals investors plus watchdogs now demand. 

Climate Risk Modeling and Resilience 

Now, artificial intelligence helps us understand – even brace for – the dangers of a changing climate. Systems employ AI to forecast how different climates might unfold, anticipating consequences like intense storms, rising oceans, and shifting temperatures. 

These tools help those handling money gauge risks when making deals, deciding on insurance, or preparing for tough times. Property owners gain useful knowledge about getting ready for emergencies alongside strategies for future improvements.  

The Tenant and Investor Perspective 

Companies wanting to show they care about the environment now hunt for buildings matching those values. Tools using artificial intelligence help building owners prove how well they conserve energy – giving them an edge over others. 

For investors, artificial intelligence improves environmental, social, and governance reports. It streamlines gathering information alongside evaluating results versus standards like ENERGY STAR, LEED, and moreover GRESB. Clear, trustworthy reporting satisfies requirements while drawing interest from major investors. 

Challenges and Considerations 

While AI holds promise, there are challenges. Reliable performance depends on high-quality data, and many commercial buildings lack modern sensors or integrated management systems. Implementing AI also requires upfront investment, though the long-term savings and risk reduction can outweigh initial costs. 

There is also the question of governance. As with all emerging technologies, transparency, data privacy, and accountability will need to evolve alongside adoption. 

The Future of AI and Sustainability in CRE 

The convergence of AI and sustainability is likely to accelerate. Advances in generative AI, computer vision, and digital twins will enable even more granular optimization of building systems, tenant experiences, and resource use. AI is also expected to play a major role in integrating renewable energy and storage into building operations, creating “smart grids” that balance supply and demand in real time. 

For commercial real estate professionals, the opportunity is clear. AI is not only a tool for efficiency but a driver of long-term value creation. Properties that embrace AI-powered sustainability solutions are better positioned to attract tenants, meet regulatory requirements, and deliver returns in a market where ESG performance is becoming a decisive factor. 

 

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