AI and Commercial Real Estate

Part 1: Why Your AI Assistant Only Gets Better With You

To those in the know, professionals who aren’t embracing AI and LLMs (large language models) may soon find themselves left in the proverbial internet ether. The good news? Incorporating AI into your workflow is a lot easier than you might think.

In this three-part series, we’ll explore what AI can do, how to incorporate it into your day-to-day CRE tasks.

Getting Started

From ChatGPT to Claude, Copilot to Gemini, there are dozens of AI tools at your fingertips. Start with a free version to test the waters. If you want more robust features, upgrade to a paid version. Platforms like ChatGPT (Plus plan and above) offer memory capabilities that recall previous conversations, making each new interaction feel like a seamless continuation.

The Art of Prompting

Talking to AI is more than just asking it a question. To get the most relevant and useful answers, include context and specificity. Avoid fluff, but don’t skimp on details. A great prompt starts by telling the AI what role it should play, followed by a clear question and relevant facts.

Example Prompt:
"You are a CRE market analyst. Based on current trends in downtown St. Louis, where are the top three areas for mixed-use development investments over the next five years?"

✨ Result: An AI-generated, research-backed response giving data points and forecasts to support smarter investment decisions.

Be Polite, Get Precision

Think of AI as your virtual assistant; it mirrors your tone. It doesn’t just respond to what you ask, it responds to how you ask it. Tone, clarity, and curiosity all impact the outcome.

Prompt 1 (Cold & Abrupt):

Explain how AI is useful in CRE. Be concise.

Response:
AI in CRE streamlines site selection, predicts ROI, automates lease processing, and enhances risk analysis. It reduces time spent on research, increases accuracy, and supports data-driven decisions in development, investment, and property management.

Prompt 2 (Kind & Curious):

Hi there! I’m curious. Can you help me understand why AI is so useful in the commercial real estate industry? I’m trying to learn more and would love a clear example if you have one. Thanks!

Response:
Absolutely! I’d be happy to explain. AI is incredibly useful in CRE because it helps professionals make faster, smarter decisions by analyzing large volumes of data—things like property values, market trends, zoning, and even foot traffic patterns. For example, AI can predict which neighborhoods are likely to grow based on historical data and local economic signals. That gives brokers and investors a powerful edge. Plus, AI tools like lease abstraction bots save hours by summarizing complex documents instantly. It’s like having a data analyst and legal assistant rolled into one.

The Bottom Line

AI isn’t replacing your expertise, it’s amplifying it. For CRE professionals, it’s the modern toolkit for everything from site selection to market analysis to client communication. The better you prompt, the smarter it becomes. Whether you're optimizing your daily workflow or impressing clients with lightning-fast insights, using AI thoughtfully will give you a lasting edge.

👉 Stay tuned for Part 2, where we explore how AI is saving CRE professionals time and money through automation, from lease abstraction to zoning compliance.

Historic Aladdin Hotel Reimagined

The historic Aladdin Hotel is getting a new lease on life in downtown Kansas City.

Molzer Development is leading the redevelopment of the iconic 16-story building into upscale multifamily housing. Originally built in 1925, the Aladdin was once the tallest building in Kansas City and stood as a beacon of luxury and innovation in the early 20th century. Now, nearly a century later, it’s being reimagined as a modern living space that honors its rich architectural past.

The project will transform the former 193-room hotel into thoughtfully designed apartment units, elegant amenity spaces, and a craft cocktail bar on the 16th floor with sweeping views of downtown.

“The Aladdin has always been a landmark in Kansas City, and we're honored to breathe new life into it,” said Zach Molzer, founder of Molzer Development. “Our goal is to celebrate its history while reimagining the space for modern use — from thoughtfully designed community spaces and amenities to extremely functional living units and a rooftop bar with energy and soul. It's more than a renovation — it's a revival.”

The Aladdin’s location continues to be a major asset. It’s one of only three buildings physically connected to the Kansas City Convention Center via an underground walkway, providing convenience for residents and future guests alike.

With downtown Kansas City’s continued growth and renewed focus on historic preservation, the Aladdin project exemplifies the potential of adaptive reuse in the urban core. For CRE professionals, it’s a case study in blending heritage and modernity—creating a space that not only serves current needs but also celebrates the city’s architectural legacy.

How CRE Transforms Healthcare in Kansas City: Insights from the 2025 Healthcare Summit

More than 49,000 people die each year of suicide, including both adults and children.  Thirteen million two hundred thousand people contemplate suicide.  Three million eight hundred thousand people make a suicide plan, and 1.6 million have attempted suicide.  These were among the alarming statistics Bobby Eklofe, EVP of inpatient operations at Camber Mental Health, shared with the audience at MetroWire Media KC’s 2025 Healthcare Summit last week.

Eklofe was joined by panelists Michael Comer, VP at JE Dunn Construction, Robert Koenig, associate principal/senior project manager at Hoefer Welker, and Catie Smith, director of planning and design at Children’s Mercy Kansas City, to discuss a recently opened mental health hospital located at the Olathe Medical Center campus.  Rob Welker, co-CEO/partner at Hoefer Welker, served as the facilitator.

The $53 million, 72-bed inpatient mental health facility known as the Children’s Mercy + Camber Mental Health Mental Wellness Campus serves both children and adults.  The 72,700 SF project opened in December, 2024, eight weeks earlier than planned.  It is a joint venture partnership between Children’s Mercy Kansas City and Camber Mental Health, a subsidiary of KVC Health Systems. 

According to Smith, in 2023, Children’s Mercy saw 4,000 visits to its emergency department by children in mental health crisis.  Children’s Mercy does not have a patient psychiatric floor, so often the children are boarding in the emergency department for hours or even days at a time awaiting placement, she said.

“The emergency department and schools are a lot of the time where these kids are first accessing care and where their needs are first being recognized.  But, there’s a big gap between where they are in the emergency department and where they need to go, where they need to land to get the right kind of help,” Smith said.

The project first was contemplated in 2016.  Hoefer Welker and JE Dunn were awarded the job, which got shelved until 2022. 

“It takes a lot to get yourself to a psych hospital standard. . . . The struggle for many people in design and construction is to come up with the safest, least amount of risk.  At the end of the day, something that is truly ligature resistant, but more importantly where we don’t promote a suicidal incident to occur,” Koenig said.

Comer said the key goal in designing the facility was ensure that patients and the staff are safe.

“We’re looking at safety, we’re looking at walls.  How do we make them abuse resistant? . . . How do we deal with glass?  How do we keep glass from breaking and chards from breaking off.  The patient’s eating the shards of glass.  It evacuates the frame.  They escape,” said Comer.

The team tested different materials for the walls and glass, using crowbars and sledgehammers to test resistance to damage.

Koenig said that a tremendous amount of effort was made to reduce trigger points in the facility.

“One thing you don’t see is where an ambulance or law enforcement might bring someone.  We’ve actually created a hidden sally port that you really don’t pay attention to and you really don’t perceive,” he said.

Dignity and respect for a patient’s experience is important.

“So the person coming in, out of respect, coming in an ambulance or the secure transport, dignity and respect coming in.  If you’re coming in through the front door, I don’t think a parent wants to see someone coming in on secured transport either, so we do have that secure entrance and a nice beautiful wall that helps with that confidentiality for that secure entrance,” Eklofe said.

“We really focused on making this space feel welcoming and comforting and light and bright while we were meeting all these technical challenges about ligature resistance. . . . The main thing is we’re trying to put ourselves in the shoes of the people who are coming into this building and saying how are they feeling when they are coming in here and how does that experience start to help their therapeutic process begin right from the moment that they enter the door,” said Smith.

All the patient rooms in the facility--24 adult rooms and 48 youth rooms--are single rooms.  Comer said the only differences between the youth and adult rooms is that the adult rooms feature ensuite bathrooms, and adults have control over the room lighting.  The adults and youth are housed in separate areas at all times.

“Once these individuals enter the facility, they no longer, by law, really can see each other and be a part of each other’s therapies.  And so from a design perspective, at the front door, we split them at the lobby.  So there are two inner lobbies—one adult and one for adolescents,” Koenig said.

The facility has six interior and exterior courtyards, large dayrooms and dining and activity spaces.

In addition, it will be the first behavioral health facility to use artificial intelligence (AI) to add another level of security.  Comer said the building already has 200 cameras built into it.  An AI partner company has been hired and soon will activate a server to tie into all of the cameras. 

“So no infrastructure, no added cost.  They come in, they bring their system, it ties in, and it can give warnings.  It’s watching all 200 cameras at once,  And it’s self-learning.  And it will give the alarms.  If it sees that tailgating, it will send an alarm out to the staff that’s on duty.  If it sees a fight happen, it will send a notice.  If it sees a crowd forming, if it sees someone climbing a fence.  And there’s like 100 of these different threat detections that come standard with this service,” said Comer.

Since it opened and through March, the facility has served approximately 600 people in need of care.

“One thing that’s great about this facility is that it’s setting a standard, and there are people from around the country that are coming to look at this. . . . A lot of thought and a lot of sweat and tears in this project, but what a wonderful thing we’re giving back to the community,” Eklofe said.

CRE Market: Signs of Stability?

Recent data from Crexi's National Commercial Real Estate Report indicates growing stability in commercial real estate markets. This positive trend is expected to make strategic planning for owners, investors, and developers more reliable. Asking prices across property types have steadied, with minimal fluctuations between January and February. Cap rates and leasing activity also held steady month-over-month, reinforcing market resilience.

Retail properties experienced slight market shifts, with a decrease in asking prices from $261.19 per square foot in February, down from a high of $280.24 in July 2024. Despite this, cap rates remained stable at 6.55%, suggesting investor confidence in retail as a lower-risk asset type due to strong occupancy rates and modest lease growth. However, external factors like tariff strategies could pose challenges for consumer spending in the future.

Asking price stability, flat cap rates, and steady leasing activity showcase the commercial real estate market's ability to adapt amid economic pressures. These indicators highlight the potential for renewed confidence and growth in Kansas City's real estate sector as property types continue to demonstrate resilience.

Revitalizing the Crossroads District

Kansas City's Crossroads area is experiencing a remarkable transformation, thanks to ongoing development projects that are breathing new life into the neighborhood. Once known as an eclectic arts district, the Crossroads is now a hub of growth, drawing both businesses and residents who recognize its potential.

The upcoming South Loop Park project, slated for completion in 2026, promises to be a game-changer. This urban green space aims to foster community engagement, enhance property values, and elevate the district's appeal as a prime location for investment. As the park takes shape, its impact on the surrounding area is anticipated to be nothing short of transformative—making the Crossroads an even more dynamic and desirable destination.

Michael Collins, president of Grayson Capital, a key player in mixed-use developments in the area, shared his enthusiasm for the project.

"At Grayson Capital, we see the South Loop Park as a transformative urban infrastructure investment. This reconnection will serve as a powerful economic and cultural catalyst, enhancing walkability, livability, and unlocking tremendous value for small businesses between the Central Business District and Crossroads. From my own experience leading the planning and implementation of the Berkley Riverfront master plan development, I've seen firsthand how intentional infrastructure investments can generate long-term value," Collins said.

The Crossroads area has long been known for its artistic charm, with galleries, studios, and creative spaces dotting the landscape. However, recent developments are adding a commercial dimension to this vibrant neighborhood. Businesses are flocking to the Crossroads, attracted by its unique blend of creativity and commerce. This influx of commercial activity is driving demand for retail spaces, office buildings, and mixed-use developments, further enhancing the area's appeal.

One of the key drivers of this transformation is the strategic location of the Crossroads district. Situated near downtown Kansas City, the area offers easy access to major highways, public transportation, and key amenities. This accessibility makes it an attractive destination for both businesses and residents, contributing to its rapid growth and development.

Moreover, the South Loop Park project is set to play a pivotal role in the area's revitalization. This urban green space will provide a much-needed recreational area for residents and visitors, fostering community engagement and enhancing the quality of life in the Crossroads. The park's design includes walking paths, green lawns, and spaces for public events, making it a central gathering place for the community.

For those looking to seize new opportunities, the Crossroads offers a unique blend of artistic charm and commercial promise—a combination that’s hard to resist. Investors and developers are taking note, recognizing the potential for long-term growth and stability in this dynamic neighborhood.