Will help predict property values and suggest when it’s time to raise rent
Real estate services giant JLL is planning to acquire Skyline AI, a startup that uses artificial intelligence to look for real estate opportunities.
Skyline relies on proprietary machine learning models to predict future property values and highlight investment opportunities, as well as help recommend when to adjust rents, renovate a property, or sell it.
The transaction is expected to close shortly, subject to customary closing conditions. Terms of the deal were not disclosed, but Skyline previously raised nearly $25 million from investors including JLL Spark.
"JLL provides the perfect platform to realize our vision of transforming [commercial real estate] using AI," said Guy Zipori, who co-founded Skyline in 2017 and is now CEO.
"Skyline AI has worked closely with JLL as an investor since 2018. The next natural step is to become part of JLL, a multi-billion-dollar global company that sees the transformative power of the Skyline AI platform."
Skyline will be initially deployed in the multifamily sector, before being expanded across office, retail, and industrial properties.
The startup currently tracks more than 400,000 residences in the US with data related to demographics, occupancy levels, the performance of assets, and feedback from tenants. It does this by collecting data from more than 300 sources, including real-estate analytics, transportation, and crime statistics.
"The acquisition of Skyline AI is a significant step for JLL as we look to provide the most strategic and creative advice to our clients," said Richard Bloxam, CEO of Global Capital Markets, JLL.
"When you combine the intelligence of the best advisors on the ground with a quantitative expert team and AI data analysis, you get insights that are beyond human and create a competitive edge for JLL and our clients."
JLL manages more than 5.4 billion square feet (500 million sq m) of real-estate property around the world, and said that it had already been using in-house and as-a-service AI models, including to identify occupancy patterns and make predictions about how to best use building space.
"Our teams consist of knowledgeable real estate experts and world-class technologists who successfully bring new AI offerings like Skyline AI into the fold and provide the best insights to our clients, accelerating JLL's leadership in CRE technology,” Yishai Lerner, co-CEO of JLL Technologies, said.
Skyline's roughly 30 employees in New York and Tel Aviv will join JLL as part of the acquisition.