A year after his unexpected departure from a major real estate firm, Bob Knakal is charting a strategic return to the industry, emphasizing the transformative potential of artificial intelligence (AI).
Bob Knakal, a towering figure in commercial real estate with property sales amounting to $22 billion, experienced a career setback when he was dismissed from JLL in February 2024. Undeterred, Knakal is harnessing data from his extensive 40-year career to fuel a comeback, particularly focusing on leveraging AI to gain a competitive edge in the market.
Having built his reputation not by dealing with flashy Manhattan skyscrapers but through countless transactions of apartment buildings and land sites across New York City, Knakal is now utilizing AI to analyze vast arrays of property data. His new venture, BKREA, employs only 15 people but aims to rival much larger firms by using advanced technology. “The extent to which the world is going to change over the next five years is going to blow away what’s happened over the last 40,” Knakal asserts, emphasizing the pivotal role AI will play.
Knakal’s strategy is rooted in the meticulous collection and application of property data, a practice he has maintained since the mid-1980s. Despite the wide availability of New York City’s property records, Knakal’s proprietary insights, such as tenant holdout situations impacting property value or unique access agreements enhancing land value, set his data apart. He spent three years during the pandemic personally verifying thousands of development site sales, showcasing his commitment to data accuracy. “If you’re putting bad data in, you’re getting bad data out,” Knakal notes, highlighting the importance of data quality in AI applications.
Knakal’s firing from JLL followed a series of disagreements over media appearances, culminating in his ousting after a high-profile New York Times feature. Although his departure marked a difficult phase, described by Knakal as “the dark ages of my career,” he remains motivated. His new firm aims to integrate AI with traditional methods, such as a large, physical map of Manhattan to help clients visualize market opportunities. This combination of analog and digital tools is proving effective, with BKREA securing $2 billion in property sales commitments.
Knakal’s passion for real estate remains undiminished. He continues to thrive on the challenges of the industry, as noted by former colleague James Nelson, who describes Knakal’s enduring enthusiasm and adaptability. The revival of his career is characterized by an eagerness to innovate and compete, underscored by his strategic deployments of AI to enhance his firm’s market position.
Bob Knakal’s journey reflects a blend of experience and innovation. By integrating AI into his real estate strategy, he not only adapts to modern challenges but also sets a new standard in an evolving market. His determined resurgence underscores a commitment to excellence and reinvention.
Source: Businessinsider
