IDEAS in action at LaSalle: Artificial intelligence

The arrival of artificial intelligence (AI) is a watershed moment for the entire world, and our industry is no different.

AI is already transforming how real estate investment operates, as managers use the technology to streamline operations. Generative AI is being used to automate time-consuming tasks, like investor due diligence, data analysis, and the processing of contractual documents. But this is only the tip of the iceberg of AI’s untapped potential in our industry. Used right, the technology can deliver real value for us and our clients.

At LaSalle, we are constantly adapting to the ever-changing technological landscape. By embracing new opportunities, we can reap the substantial benefits of technological innovations as they transform the world around us, rather than watch them pass us by.

LaSalle’s technology strategy is setting an industry-leading example of how companies can invest in the right technologies, execute the right strategies, and drive the value of new technologies for clients, industry, and people.

What is LaSalle’s technology strategy?

At LaSalle, our technology strategy is driven by IDEAS – Invest, Data, Efficiency, AI and Sales.  

The five components of our IDEAS framework are designed to guide our company’s decisions on technological investments to ensure we are deriving maximum benefit in priority areas:

The framework ensures LaSalle’s teams stay ahead; always ready to adopt innovative new capabilities that can transform the way we work.

How does AI fit into LaSalle’s technology strategy?

We have made AI one of the central components of our IDEAS framework.

As an entity of JLL, LaSalle has access to JLL GPT – the world’s first large language model built by and for the commercial real estate industry. This is a competitive advantage that we leverage to stay ahead. JLL GPT uses JLL’s own extensive commercial real estate data, and external data sources, employing AI to expedite and simplify workflows. JLL GPT has allowed LaSalle teams across the business to drive better working processes internally, enhance efficiency, and ultimately deliver results to our clients.

We spoke to LaSalle teams to find out how they are embracing AI to support their everyday work.

Using JLL GPT to unlock resources

Nicole Creguer, Associate Vice President of Operations, has been guiding the US Asset Management team on using JLL GPT to free up time for more strategic thinking, by taking on manual and administrative tasks.

Creguer is part of the Americas Generative AI Innovation Forum at LaSalle, a group which brings together representatives from LaSalle’s US teams to discuss and drive the latest AI solutions.

Creguer has brought many practical use cases back to her team, including using JLL GPT to analyze meeting transcripts, summarize notes, and finesse communications, ensuring the top-quality output of work.

“JLL GPT saves us huge time on administrative tasks, so we can focus on creating better analysis and adding more strategic value in our work,” Creguer explained.

Using JLL GPT for underwriting models

Matthew Sweiss, Associate Vice President, and Peter Passalino, Associate, are using JLL GPT to drive efficiency within LaSalle’s US Transactions team by streamlining the handling of large amounts of underwriting data.

“We were looking to use JLL GPT to build functionality into our portfolio underwriting models via Excel macros,” said Sweiss. “We wanted to enhance our ability and efficiency in underwriting very large commercial portfolio transactions – the goal being to create a seamless transition between our reporting software and underwriting Excel models.”

Sweiss and Passalino used JLL GPT to develop a macro, test it, and provide feedback to the AI tool. With the feedback inputted, JLL GPT was able to enhance the macro formula, until an ideal solution was provided.

“You would think it might take a while to develop a solution, but the process of inputting the original request, iterating with GPT on it, going through trial-and-error, and landing on a final version, took about a day,” explained Passalino.

“We’ve happily adopted this new solution, and we hope other teams use this to replicate the process as needed going forward,” says Sweiss.

Across the global business, LaSalle is following this example and embracing AI and JLL GPT to simplify work, drive efficiency, and excel productivity. JLL GPT holds immense potential to drive efficiency and value, fostering a commitment from LaSalle to push the boundaries of exploration, through IDEAS.

How does AI fit into LaSalle’s investments?

The IDEAS framework is intended to guide LaSalle’s internal technology strategy. But it is ultimately a reflection of the appetite for embracing innovation running through LaSalle.

This is an appetite that we bring not only to improving our internal business processes, but also to our external investment decisions.

At LaSalle, we are always considering opportunities to partner with others on pioneering solutions to the greatest challenges the real estate industry is facing today.

In partnership with JLL Property & Asset Management, LaSalle selected HANK to run a pilot scheme to test the use of AI powered technology in one of LaSalle’s client offices at 240 Blackfriars, London in 2022.

HANK integrates with the existing building management systems to monitor and ‘learn’ how the existing heating, ventilation and air conditioning (HVAC) system operates. Using AI, energy models and other data inputs, HANK makes real-time micro-adjustments to optimise the operation of the HVAC equipment continuously.

“Using HANK has resulted in efficiencies across the board for 240 Blackfriars, including energy savings, cost savings, reduced carbon, and a positive working environment for tenants. This is an initiative born out of LaSalle’s openness to leverage new technologies. I look forward to exploring more ways for us to use innovation to deliver tangible benefits for our tenants and commercial clients.” – Brett Ormrod, Net Zero Carbon Lead, Europe

It might not yet be clear how transformational the arrival of AI will be for the real estate industry, but we can be certain it will be significant.

There is no doubt vast untapped potential for AI in our industry. LaSalle’s IDEAS framework is a gold-standard example of how real estate investment managers can invest in the right technologies and execute the right strategies to see the most benefit from technological innovations, like AI.

LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.

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