In Episode #26 of Slice of Real Estate, David Blumenfeld, Co-Founder at NextRivet. 

Listen to the full episode to learn about: 

• NextRivet’s Mission: Helping real estate companies turn digital ideas into actionable innovations.

• Challenges in PropTech Adoption: Why real estate is slow to change and how to overcome resistance.

• AI’s Role in Real Estate: From lease automation to spatial analytics, how AI is reshaping the industry.

• Future of PropTech: The rise of building automation, predictive site selection, and quantum computing’s impact.

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The real estate industry is notorious for its slow adoption of technology, but companies like NextRivet are changing the game. Co-founder David Blumenfeld joined the SoM Podcast to discuss how his company helps real estate firms move from concept to execution in digital transformation.

Blumenfeld, whose background includes leading Westfield Labs, shared how AI, automation, and smart building systems are reshaping retail, office spaces, and mixed-use developments. However, real estate’s conservative nature often creates barriers to innovation.

Why Real Estate is Slow to Change

Real estate has long prioritized predictable returns and low risk, making it hesitant to embrace new technologies. Many executives prefer to wait until competitors prove success before making their own investments. Blumenfeld humorously calls this "the first to be 15th" mentality—companies want to innovate, but only after many others have done it first.

This cautious approach means many firms are still using outdated systems. Leasing teams rely on spreadsheets, and legal departments often resist AI adoption due to security concerns. Yet, Blumenfeld emphasizes that AI is not a standalone product—it’s an ingredient that enhances existing tools, streamlining processes and improving decision-making.

How AI and Automation Are Transforming Real Estate

Despite resistance, AI-driven tools are already making waves:

• Automated leasing platforms eliminate spreadsheets and improve lead management.

• Lease extraction AI pulls insights from past contracts, making negotiations more efficient.

• Spatial analytics track customer movement in malls and office buildings, optimizing leasing strategies.

• Building automation systems (think Google Nest for commercial properties) manage HVAC, lighting, and energy efficiency autonomously.

Blumenfeld sees AI as a "turbo boost" for real estate operations rather than a replacement for human expertise. The key is educating decision-makers so they understand AI’s role as a business enhancer, not a threat.

What’s Next for PropTech?

Looking ahead, Blumenfeld predicts several major shifts:

• Smarter building management will become standard, optimizing energy use without manual intervention.

• AI-driven customer service (think advanced chatbots) will reduce headcount while improving tenant experience.

• Predictive site selection will revolutionize commercial real estate, combining sales data, demographics, and even weather patterns to pinpoint ideal locations.

• Quantum computing, still in its early days, will dramatically increase computing power, affecting everything from data security to real-time analytics.

While these advancements are on the horizon, Blumenfeld urges real estate companies to act now. Waiting too long could leave firms playing catch-up as the industry shifts towards a more tech-driven future.

Final Thoughts

The future of PropTech is about execution, not just ideas. Companies that embrace AI, automation, and data-driven decision-making will lead the next era of real estate. As Blumenfeld puts it, “Live is better than perfect”—the key is getting started, testing, and refining along the way.

For real estate leaders still hesitant about digital transformation, the message is clear: The time to innovate is now.

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