A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions, straight to your inbox.
John Carrafiell, co-CEO of BGO, a global real estate investment manager with $89 billion in assets under management, takes great pride in the fact that he sits right next to his chief data scientist.
Investment strategy, whatever the market, has always relied on research and data, but artificial intelligence has taken that to a whole new level, transforming investment research models developed just a few years ago and putting them on steroids.
Carrafiell, who has been in the real estate business for roughly 40 years, said he was increasingly frustrated by the sector’s research and data methodologies, which he said really hadn’t changed at all over those years. Everyone seemed to be looking at the same information and coming up with the same conclusions. The question he said he kept asking himself was, “How do we really outperform?”
