## Real Estate Roundtable Explores the Impact of AI, 1031 Exchanges and Sustainability
**Key Takeaways**
– The real estate industry is undergoing significant changes driven by advancements in AI and the evolving landscape of office space. Participants in a recent _CCO AI Real Estate Roundtable_ discussed critical topics such as the 1031 exchange, the impact of AI on the industry and the growing importance of sustainability.
– The discussion highlighted the ongoing efforts to educate elected officials on the importance of the 1031 exchange, emphasizing the need to protect this key investment tool for individuals and businesses.
– Participants emphasized the power of relationships and the need for face-to-face interactions despite the growing influence of AI and virtual platforms. The roundtable also focused on the evolving nature of data and the potential for licensing models that account for data consumption.
## A Focus on the 1031 Exchange and Sustainability
Dan Wagner, senior VP of government relations at Inland Real Estate Group companies, is spearheading a campaign to educate both Democrats and Republicans about the importance of the 1031 exchange. The 1031 exchange allows investors to defer capital gains taxes when they sell and reinvest in similar properties, a crucial tool for real estate development and wealth creation.
“President Biden in his budget…he put it again to cap it at $500,000 to double capital gains and to um get rid of stepped up bases,” explained Wagner. “We’re out there trying to educate people to let them know that’s not a good idea…We really need to educate the Democrats and Republicans…to let them know why it’s so important,” he added.
The roundtable also covered the growing focus on sustainability in real estate. Ana Maria, SVP Director of Business Development for Inland Green Capital, emphasized the need to stay ahead of the curve in this rapidly evolving sector. “There are new technologies that keep emerging…all kinds of things that we have to keep our eyes on…things that it wasn’t able to do before, are now beginning to be done, such as some programs some states are actually looking at variable rates instead of that, you know we always tout commercial property assessed clean energy financing as up to 100% fixed rate long-term financing,” she said.
## Navigating the AI Revolution
The discussion touched on the challenges and opportunities presented by the expanding role of AI within the real estate industry. While AI-driven tools can generate valuable data and insights, participants cautioned that AI should be approached with caution.
“AI is just making it a lot easier for people to um create fake videos. We have this you know problem now where we have our corporate executives, you know, people making up fake videos appealing to shareholders or investors,” said Darren Hay, CEO of Code Detectives, a leading forensic cyber security specialist. “AI makes it very easy to create videos, voice, um photos, very very easily um to perpetrate these types of of crimes.”
Saul Klein, realtor and MLS president and CEO of the MLS in San Diego, focused on the potential impact of AI on MLS data. “The question is how do you integrate that into your business so you can make more money and stay out of trouble?” he asked.
The discussion centered on the potential need for new data licensing models that accurately reflect the value of MLS data. “We’re going to figure out ways to start charging people based on consumption of the data,” said Klein. ” … if you’re a broker and you’re producing and you’re providing that content to the MLS then of course you should get some break on that, but there are a lot of big players out there that don’t provide a whole lot to the to the equation and yet they utilize that data to build billion-dollar businesses and that’s got to stop.”
## Maintaining the Human Element
Despite the rapid advancement of AI and technology, the group emphasized the importance of interpersonal connections for success in the real estate world.
“The purpose of the realtor’s Information Network is to keep the realtor in the center of the transaction,” said Klein. “I don’t think being in the center of the transaction is the name of the game anymore. I think if you’re a residential realtor or a realtor in general, you have to keep yourself in the center of the conversation,” he added.
Wagner highlighted the power of face-to-face interactions: “It’s so important to build the foundations, to uh … make sure that not only you have a plan, but you have the documents to support the plan and you have make the relationships and nurture those relation relationships along the way…so that when it is time to ask for something, you will be given it.”
Andreas Senny, an industry leader who hosts the _CCO AI Real Estate Roundtable_, underscored the show’s value as a platform for sharing knowledge and fostering relationships. “This show is the one-stop shop for all things across the industry,” he said. “It’s a candid conversation. Thank you to our listeners, thank you to my fellow co-hosts, thank you to the industry that I love working in.”
## The Future of Real Estate
The roundtable concluded with a sense of optimism about the future of real estate, despite the challenges. Participants acknowledged the evolving nature of the industry and the need to adapt to shifts in technology and consumer behavior.
“The opposite of opportunity and pain is ongoing,” said Senny. “Let’s help the industry move forward as each of you does in your respective spaces and continue on…I’m looking forward to seeing everybody next month.”