Candice Clark
EXtrance, a Minneapolis-based company founded in 2020, is leveraging artificial intelligence (AI) and machine learning to revolutionize commercial real estate sales and investments. The company aims to assist mid- to large-size institutional funds in making informed decisions and offering the best possible investment products to their clients and investors.
The founder of EXtrance, William Lively, has a background in real estate and technology. Lively, who describes himself as an investor, innovator, and technologist, has been involved in the industry for several years. His interest in cutting-edge technologies and his experience as an investor and manager prompted him to start EXtrance as an R&D company. The goal was to use advanced technology to address complex problems in the real estate and investment industries.
When discussing AI and machine learning, Lively explained that it involves leveraging computers and machines to replicate human problem-solving and decision-making abilities. In commercial real estate, AI serves as a foundation for modeling and analysis, enhancing productivity by automating analysis processes. By utilizing AI systems, the company claims to be able to achieve the equivalent of 1,000 full-time employees dedicated to analysis for the price of one.
The use of AI in commercial real estate offers several advantages. It enables the harnessing of big data and generates AI-generated reports that provide valuable insights. Additionally, AI can streamline processes such as capital calls, fund growth operations, and Treasury operations, which are usually time-consuming and paperwork-heavy.
Lively believes that the adoption of AI and machine learning technologies is becoming essential in the commercial real estate space. While attempts have been made to introduce technology in the industry since 2010, this current era necessitates their adoption to avoid falling behind. Lively mentioned that earlier solutions were often limited and targeted specific issues, leaving gaps in the overall operation of funds. However, with the increasing momentum behind AI and machine learning adoption, failing to utilize these technologies may raise questions from investors.
Although commercial real estate has been slower to adopt new technology compared to other financial sectors, Lively noted that the industry has been gradually embracing it. The COVID-19 pandemic has emphasized the need for efficiency and cost reduction, leading to increased adoption of technology in the sector. With the introduction of more consumer-facing applications, there is a growing acceptance of AI and machine learning in commercial real estate.
Lively’s interest in this line of work can be traced back to his natural inclination for technology, which he pursued as a high school student. His professional journey in the finance and investment banking side, particularly his time at a pioneering blockchain investment firm, further fueled his passion for bringing innovative technologies into the real estate industry. Lively finds the real estate industry captivating and sees immense potential for transformation and innovation in commercial real estate partnerships.
With his strong ties to the Twin Cities, Lively has deep roots in the area. He attended school there but chose to drop out of college to pursue his entrepreneurial ventures and explore opportunities in the real estate and technology industries.
Source: Fagen Wasanni Technologies
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