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Survey of 166 CRE professionals reveals that nearly one-third of asset managers regularly make major capital decisions based on gut instinct, costing portfolios millions in avoidable reactive spending
CHICAGO - Michimich -- SITE Technologies, a provider of AI-assisted asset intelligence solutions for commercial real estate, today released The CapEx Intelligence Gap, a comprehensive research report examining how commercial real estate teams make capital planning decisions, where visibility breaks down, and how reactive spending affects portfolio performance.
Based on survey responses from 166 commercial real estate professionals across operations, property management, asset management, procurement, and capital planning, the report reveals a clear disconnect between the confidence many organizations have in their CapEx planning processes and the condition-level data available to support those decisions.
The findings point to a broader industry challenge: many CRE teams are still making high-value capital decisions without consistent, portfolio-wide visibility into asset conditions. As a result, owners and operators may be overexposed to emergency repairs, deferred maintenance, inaccurate forecasts, and avoidable value loss at disposition.
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Key Findings
"The most surprising finding is not that operators are spending reactively — everyone in the industry knows emergency CapEx is a problem," said Austin Raine, Chief Executive Officer of SITE Technologies. "What is surprising is that the operators experiencing all the symptoms of a broken planning process simultaneously believe their five-year CapEx projections are solid."
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The report also examines how artificial intelligence is being applied in commercial real estate. While much of the industry conversation has focused on AI for lease abstraction, tenant communications, and administrative workflows, The CapEx Intelligence Gap highlights a more operationally consequential use case: applying computer vision, machine learning, and engineering validation to evaluate the physical condition of capital-intensive assets objectively and consistently across large portfolios.
For owners and operators managing dispersed assets, the report argues that condition-based intelligence can help shift capital planning from reactive repair cycles to more proactive, evidence-based portfolio management.
The CapEx Intelligence Gap is available for free download at www.sitetechnologies.io/capex-intel-gap-research
Based on survey responses from 166 commercial real estate professionals across operations, property management, asset management, procurement, and capital planning, the report reveals a clear disconnect between the confidence many organizations have in their CapEx planning processes and the condition-level data available to support those decisions.
The findings point to a broader industry challenge: many CRE teams are still making high-value capital decisions without consistent, portfolio-wide visibility into asset conditions. As a result, owners and operators may be overexposed to emergency repairs, deferred maintenance, inaccurate forecasts, and avoidable value loss at disposition.
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Key Findings
- 29% of asset managers regularly rely on gut instinct or informal assessment, rather than formal condition data, for significant capital planning decisions.
- 69% of respondents have experienced capital expenditures that were higher than they would have been if maintenance had been addressed earlier.
- 35% of respondents reported cost increases of 25% or more due to delayed maintenance.
- 63% of respondents said more than 10% of annual CapEx was triggered by unplanned or emergency events.
- 28% of respondents reported that more than a quarter of annual CapEx fell into the unplanned or emergency category.
- Only 20% of respondents said their organizations have fully implemented predictive analytics or condition-based monitoring across their portfolios.
- 66% of respondents estimate that real-time asset visibility would reduce unplanned capital expenditures by more than 10% annually.
"The most surprising finding is not that operators are spending reactively — everyone in the industry knows emergency CapEx is a problem," said Austin Raine, Chief Executive Officer of SITE Technologies. "What is surprising is that the operators experiencing all the symptoms of a broken planning process simultaneously believe their five-year CapEx projections are solid."
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The report also examines how artificial intelligence is being applied in commercial real estate. While much of the industry conversation has focused on AI for lease abstraction, tenant communications, and administrative workflows, The CapEx Intelligence Gap highlights a more operationally consequential use case: applying computer vision, machine learning, and engineering validation to evaluate the physical condition of capital-intensive assets objectively and consistently across large portfolios.
For owners and operators managing dispersed assets, the report argues that condition-based intelligence can help shift capital planning from reactive repair cycles to more proactive, evidence-based portfolio management.
The CapEx Intelligence Gap is available for free download at www.sitetechnologies.io/capex-intel-gap-research
Source: SITE Technologies
Filed Under: Technology
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