Commercial real estate, long defined by paperwork and fragmented record-keeping, is entering a digital shift powered by blockchain and artificial intelligence (AI). Industry innovators argue that technologies will modernize property transactions, streamline title and deed management, and unlock fractional ownership opportunities. Analysts say the pace is measured, but early signals point to substantial structural change.

Closings and Title Work: Modernization Moves Ahead

According to CoinDesk, a U.S. digital-asset news outlet, Propy has launched a $100 million U.S. expansion aimed at acquiring regional title companies and integrating blockchain into closing workflows. CEO Natalia Karayaneva said the expansion will “allow us to get to a billion-dollar valuation as a tech company,” while also rolling out “Agent Avery,” an AI escrow assistant designed to automate tasks from contract processing to crypto payments.

According to GlobeNewswire, Karayaneva added that real estate has “had every kind of digital upgrade except the one that matters most,” pointing to the closing process as overdue for modernization that reduces delays and fraud.

Public Land Records: Counties Test Blockchain Infrastructure

One of the highest-profile U.S. tests is underway in New Jersey. According to GovTech, a U.S. government-technology publication, Bergen County partnered with Balcony to digitize and store 370,000 property deeds on a distributed ledger, representing approximately $240 billion in real-estate value across 70 municipalities. The five-year project aims to improve record accuracy while reducing processing latency and administrative burden.

“People are realizing this technology is here to stay,” said Dan Silverman, Co-CEO of Balcony, in an interview with GovTech. He added that while many still associate blockchain only with cryptocurrency, secure land-records infrastructure represents a far more durable use case.

Regional business outlet NJBIZ reported that the county is using Avalanche-based systems to ensure deed integrity on-chain.

AI in Investment: Data-Driven Underwriting

According to The Bee-yond Real Estate podcast, George Ellison, former Bank of America executive and co-founder of Propbee, said AI tools can forecast rents, expenses and market trends “with neighborhood-level accuracy” that improves investor decision-making.

Ellison noted that while automation will replace some repetitive tasks, human oversight remains essential. “It won’t replace the human connection that drives this business,” he said.

Market Momentum: Tokenized Assets Gain Scale

Enthusiasm for “real-world assets” (RWA) is increasingly reflected in the numbers.

Graphics: Korea IT Times (Data sources: CoinGecko; 21.co; GovTech; NJBIZ)

Industry analysts note that commercial real-estate tokenization in the United States remains constrained by securities regulation, with most offerings restricted to accredited investors and low-liquidity private markets.

Regulatory Reality: Innovation Meets Guardrails

While momentum is growing, regulatory caution remains influential:

• Counties differ in digitization standards for title and deed management

• Tokenized real-estate products must comply with U.S. securities laws

• AI underwriting must satisfy privacy and discrimination safeguards

Policy experts say clarity from the U.S. Securities and Exchange Commission (SEC) could accelerate the sector’s progress, though major shifts are not expected until 2026 or later.

Why It Matters

Even incremental modernization could result in:

• Faster settlement of large commercial transactions

• Lower administrative costs across title and escrow

• Stronger fraud prevention and audit trails

• Broader access to property investment through fractional ownership

Executives like Karayaneva and Silverman argue that blockchain infrastructure will eventually serve as a core backbone for property rights. Meanwhile, Ellison sees AI leveling the playing field for smaller investors who historically lacked institutional-grade insights.

The world’s most physical asset class is becoming more digital. The key question now is not if the transition will happen, but how quickly regulators, legacy service providers and market participants can adapt.

Monica Younsoo Chung More by this reporter