Kroll Rolls Out Automated CRE Valuation Tool

Kroll's new platform enters a market where traditional valuation methods face challenges from macroeconomic volatility and increased investor demand for frequent, transparent data. Historically, a lack of comparable sales data and the unique nature of commercial properties have complicated appraisals. Automated Valuation Models (AVMs) are becoming more prevalent, with some predictions suggesting 90% of CRE assets will use AVMs as a starting point by 2030. The Real Estate Valuation Solution (REVS) is designed to serve institutional investors, sponsors, and owners, particularly those with perpetual life funds, net asset value (NAV) vehicles, and private wealth structures that require more frequent valuations. Last year alone, Kroll valued over $25 billion in institutional real estate across more than 15,000 commercial properties in the U.S. The platform aims to shorten the valuation cycle while ensuring the results are audit-ready. This launch continues Kroll's expansion of technology-driven solutions within its Real Estate Advisory Group, which provides a range of services from transaction advisory to portfolio management. The firm has also developed a separate Property Insurance Valuation Platform to address widespread underinsurance, a problem that affected 67% of the buildings Kroll valued in 2022. The move toward automation reflects a broader industry trend, with AI-powered tools increasingly used to analyze market trends, forecast property values, and manage assets. These technologies process vast datasets, including economic indicators and demographic trends, to deliver more precise valuations than traditional methods alone. This allows investors to make faster, data-backed decisions in a competitive market.