AI-powered insights to drive efficiency and sustainability in commercial real estate

By Michael Mullin, IBSRE

As CEO of a technology service provider dedicated to supporting commercial real estate companies, I foresee transformative changes in our industry in 2026, driven by advancements in artificial intelligence and data analytics. The power of AI to reshape energy forecasting will redefine how owner/operators manage their properties and enhance operational efficiency.

Revolutionizing Energy Management: AI-driven energy forecasting will be a cornerstone of energy management for commercial buildings. No longer reliant on historical averages and static assumptions, building operators will anticipate energy costs with unprecedented accuracy. Instead of responding to bills after the fact, they will proactively manage their energy use, capitalizing on predictive insights to navigate fluctuating energy prices and occupancy shifts.

Enhanced Operational Efficiency: With AI models continuously learning from vast datasets, owner/operators will see significant reductions in energy waste. Predictive capabilities will enable property managers to adjust HVAC schedules and loading strategies in real time, optimizing energy use while maintaining tenant comfort. This proactive approach will create a feedback loop, enabling buildings to adapt dynamically and reinforce best practices based on performance data.

Portfolio-Wide Insights: A key advantage of AI-driven forecasting is its ability to scale across diverse portfolios. In 2026, commercial real estate owners will leverage consistent forecasting strategies that encompass various property types and locations, treating energy management as a portfolio-wide challenge rather than isolated cases. This holistic approach will enable smarter decision-making and empower owners to deploy resources more efficiently.

Strategic Capital Planning and Sustainability: As energy forecasting evolves, it will transform capital planning processes. Building operators will utilize predictive insights to evaluate the financial implications of potential upgrades or electrification strategies before implementation. This data-driven approach will enhance sustainability initiatives, allowing owners to model emissions reductions and identify opportunities that align with investor expectations and regulatory requirements.

Moreover, as investors increasingly emphasize energy efficiency and sustainability performance, the ability to provide accurate energy forecasts will significantly bolster our clients’ attractiveness to potential investors and stakeholders. By grounding their strategies in reliable data rather than estimates, they will not only improve operational performance but also solidify their leadership in the green building movement.

Overcoming Data Barriers: While the transition to AI-driven energy forecasting is promising, we recognize the ongoing challenges related to data quality and infrastructure. In 2026, we expect significant investments in smart building technologies, sensor deployments, and system integrations that will enhance data quality across the commercial real estate sector. As these barriers diminish, more buildings will harness AI’s predictive capabilities, foster innovation, and create a level playing field.

Navigating Uncertainty: Today’s commercial real estate environment is marked by increasing volatility and tighter margins. AI-powered forecasting will serve as a strategic tool that narrows the gap between uncertainty and clarity in energy management. By providing real-time, active insights, our clients will be positioned to make informed decisions that enhance their competitive advantage.

In summary, the next few years will see AI redefine how commercial real estate companies approach energy management. As a technology service provider, we are committed to helping our clients navigate this transformation by providing the tools and expertise needed to realize the full potential of AI-driven energy forecasting. Together, we will forge a new path toward smarter, more efficient buildings that balance operational needs with sustainability goals.

Mike Mullin is the president & CEO of IBSRE.