IP Library › Granted Patent US 11,893,625
Granted Patent B2
US 11,893,625 · App. 17/076,374 · Granted Feb 6, 2024

System and method for forecasting real estate solutions

Inventors: Marshall O'Moore (New York, NY); Ruiqi Hu (Riverside, CT); Christelle Bron (New York, NY); Derek Chanler-Berat (Bedford Corners, NY)
Assignee: CBRE, Inc.
G06Q30/0645G06N3/08G06N5/046G06Q10/10G06Q50/16
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Quick Facts
Patent No.
US 11,893,625
App. No.
17/076,374
Granted
Feb 6, 2024
Kind
B2
Abstract

A computer-implemented system and method of analyzing historical business data and business objectives for real estate solution prediction is provided. The method includes receiving a user dataset associated with a business entity by a server computing device. The server may determine a set of forecasted headcounts at different points of future time based on a historical headcount, generate a plurality of scenarios associated with the business entity based on the forecasted headcount and the commercial objective dataset, and construct option trees with respective real estate solutions corresponding to respective scenarios. A neural network system may be configured to perform stress tests against respective scenarios to evaluate respective real estate solutions and determine respective costs and actions associated with respective real estate solutions. The computing device may determine an optimal real estate solution with a minimized cost and a corresponding action that the business entity takes to minimize the costs.

Claims (44)

1. A computer-implemented method for optimizing future real estate solutions, comprising:

receiving, by a server computing device comprising a processor and a non-volatile memory storing computer-executable instructions, a user dataset associated with a business entity from a user computing device via a network, wherein the user dataset comprises a historical headcount associated with the business entity and a business objective dataset;

determining, based on the historical headcount associated with the business entity, a set of forecasted headcounts at different points of a future time span;

generating, based on the set of forecasted headcounts and the business objective dataset, a plurality of scenarios associated with the business entity;

constructing discrete option trees with respective discrete real estate solutions corresponding to respective scenarios;

performing, through a neural network system, a plurality of stress tests on the plurality of the scenarios against the respective forecasted headcounts and the discrete option trees to evaluate the respective discrete real estate solutions and determine respective costs and actions associated with the respective discrete real estate solutions, wherein the neural network system comprises a value network and a policy network that are alternatively trained until convergence, the value network being trained via a randomly weighted value function to predict the respective costs and actions associated with the respective discrete real estate solutions, and the policy network being trained via a randomly weighted policy function to predict an optimal real estate solution with a minimized cost based on an output of the value network, wherein the performing comprises:

generating, using the value network, a plurality of next actions for the business entity to take to minimize expected future costs based on the respective forecasted headcounts and the discrete option trees, and

selecting, using the policy network, the optimal real estate solution for the business entity to take based on the plurality of next actions generated by the value network; and

providing information for causing a visual representation identifying the optimal real estate solution for the business entity to be presented on a display of the user computing device.

2. The method of claim 1 , comprising:

generating a value for using a flexible office space solution; and

providing the business entity with an option that combines a traditional lease option with the flexible office space solution.

3. The method of claim 1 , wherein the neural network system is a feedforward neural network.

4. The method of claim 1 , comprising:

iteratively training the value network to predict future costs of the real estate solutions by minimizing a predictive error using an optimizer; and

training the policy network to choose a best cost minimizing solution for the costs predicted by the value network.

5. The method of claim 4 , wherein the optimizer is an adaptive moment estimation (ADAM) optimization algorithm configured to update network weights iteratively based on training data.

6. The method of claim 4 , wherein the policy network and the value network are trained with a set of values associated with the business entity at the time of an option point.

7. The method of claim 6 , wherein the set of the values comprises a size, a remaining term, a product type of the business entity, and the time of the option point comprises a notice date, an effective date of a space contraction, a lease expiry date, and an effective date of lease termination associated with the business entity.

8. The method of claim 1 , wherein each forecasted headcount is represented by a range of headcount values, and each of the plurality of the scenarios comprises a space type and respective capital costs associated with the business entity.

9. The method of claim 1 , wherein the business objective dataset associated with the business comprises a lease space, a lease term, and a lease structure that the business entity requests.

10. A computing system, comprising:

a non-volatile memory storing computer-executable instructions; and

a processor coupled to the memory that, when executing the instructions is configured to:

receive a user dataset associated with a business entity from a user computing device via a network, wherein the user dataset comprises a historical headcount associated with the business entity and a business objective dataset;

determine, based on the historical headcount associated with the business entity, a set of forecasted headcounts at different points of a future time span;

generate, based on the set of forecasted headcounts and the business objective dataset, a plurality of scenarios associated with the business entity;

construct discrete option trees with respective discrete real estate solutions corresponding to respective scenarios;

perform, through a neural network system, a plurality of stress tests on the plurality of the scenarios against the respective forecasted headcounts to evaluate the respective discrete real estate solutions and determine respective costs and actions associated with the respective discrete real estate solutions, wherein the neural network system comprises a value network and a policy network that are alternatively trained until convergence, the value network being trained via a randomly weighted value function to predict the respective costs and actions associated with the respective discrete real estate solutions, and the policy network being trained via a randomly weighted policy function to predict an optimal real estate solution with a minimized cost based on an output of the value network, wherein the performing comprises:

generating, using the value network, a plurality of next actions for the business entity to take to minimize expected future costs based on the respective forecasted headcounts and the discrete option trees, and

selecting, using the policy network, the optimal real estate solution for the business entity to take based on the plurality of next actions generated by the value network; and

provide information causing a visual representation identifying the optimal real estate solution to be presented on a display of the user computing device.

11. The computing system of claim 10 , wherein the processor is further configured to:

generate a value for using a flexible office space solution; and

provide the business entity with an option that combines a traditional lease option with the flexible office space solution.

12. The computing system of claim 10 , wherein the neural network system is a feedforward neural network.

13. The computing system of claim 10 , wherein the processor is further configured to:

iteratively train the value network to predict future costs of the real estate solutions by minimizing a predictive error using an optimizer; and

train the policy network to choose a best cost minimizing solution for the costs generated by the value network.

14. The computing system of claim 13 , wherein the optimizer is an adaptive moment estimation (ADAM) optimization algorithm configured to update network weights iteratively.

15. The computing system of claim 13 , wherein the policy network and the value network are trained with a set of values associated with the business entity at the time of an option point.

16. The computing system of claim 15 , wherein the set of the values comprises a size, a remaining term, a product type of the business entity, and the time of the option point comprises a notice date, an effective date of a space contraction, a lease expiry date, and an effective date of lease termination associated with the business entity.

17. The computing system of claim 10 , wherein each forecasted headcount is represented by a range of headcount values, and each of the plurality of the scenarios comprises a space type and respective capital costs associated with the business entity.

18. The computing system of claim 10 , wherein the business objective dataset associated with the business comprises a lease space, a lease term, and a lease structure that the business entity requests.

Assignments (1)
ASSIGNMENT OF ASSIGNOR'S INTEREST Recorded Nov 3, 2020
From: O'MOORE, MARSHALL; HU, RUIQI; BRON, CHRISTELLE; CHANLER-BERAT, DEREK
To: CBRE, INC.
Reel/Frame 054256/0903 →
Continuity (2)
Provisional Application 62924846 · Oct 23, 2019
Related Publication 20210125271A1 · Apr 29, 2021