Commercial real estate portfolios are under growing pressure as rising operating costs, tightening ESG requirements, and changing occupier expectations challenge traditional building operations. Investors, developers, and occupiers are increasingly focused on protecting NOI, improving operational resilience, and maintaining long-term asset competitiveness in a more volatile market environment. As buildings become more connected and performance-driven, digital infrastructure and AI are emerging as operational necessities. This is enabling smarter portfolio management, greater energy efficiency, and more data-driven decision-making at scale.

I was somewhat surprised in the findings of our latest Infrastructure Transition Monitor (ITM) research. Commercial real estate leaders increasingly view digital infrastructure and AI as critical tools for improving operational performance and closing efficiency gaps across portfolios. More than half of respondents (52%) expect digital technologies to drive significant productivity gains, while energy efficiency and cost reduction rank among the most anticipated business benefits.

The reality is that the vast majority of building lifecycle costs are tied to day-to-day operations. Even incremental improvements in energy management, maintenance, and system performance can materially impact NOI and long-term asset value. Yet operational readiness still lags behind. Only 37% of respondents describe their organizations as mature or advanced in integrating digital systems into operations and using operational data effectively in day-to-day decision-making. For many facility and asset management teams, reactive operations remain the norm, even when the data to prevent disruptions already exists.

AI is rapidly moving from experimentation into mainstream building operations as commercial real estate investors, developers and occupiers look for ways to manage growing operational complexity more efficiently across assets and portfolios. According to the research, 59% of industry leaders expect AI to transform operations within the next three years, driven by the need for greater operational visibility, predictive decision-making, and real-time performance optimization. Applications such as predictive maintenance, automated fault detection, HVAC optimization, occupancy-based controls, and energy management are increasingly becoming part of standard operations rather than isolated pilot programs. At the same time, staffing shortages are intensifying the pressure. CBRE reports that 43% of US facility teams are understaffed, even as buildings become more connected and data-intensive.

Even still, a significant execution gap remains. Many organizations see AI as a strategic priority, only 36% report advanced progress in scaling AI and digital twin technologies across their portfolios. For many owners and operators, fragmented data environments and disconnected building systems continue to limit operational visibility and make digital initiatives difficult to scale effectively across assets.

The priority is no longer innovation alone, but technologies that can deliver measurable operational and financial improvements. One example is the Pennsylvania Convention Center in Philadelphia, where modernization measures helped improve efficiency across a large and complex facility. The project reduced energy consumption by 18%, generating around $686,000 in operational savings, while also improving indoor air quality monitoring and occupant comfort. The site later achieved both LEED Gold and GBAC STAR certifications, demonstrating how operational modernization can also support broader sustainability and wellness objectives. For investors, developers, and occupiers facing ongoing margin pressure, projects like this illustrate how digital infrastructure investments can translate directly into lower OPEX, stronger operational resilience, and improved long-term asset performance.

The ITM report findings make clear that AI and digital technologies are becoming operational necessities for commercial real estate portfolios under pressure to improve efficiency, resilience, and asset performance. But while expectations are high, many organizations still face fragmented systems, limited operational visibility, and challenges scaling digital initiatives across portfolios.

As operational complexity continues to grow, the sector’s next challenge will be turning digital ambition into operational reality. Building the connected data infrastructure, system integration, and operational foundations needed to support smarter, more scalable portfolio operations. In an increasingly data-driven commercial real estate market, the ability to operate intelligent, connected portfolios may soon become as important to asset competitiveness as location and leasing strategy itself.

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