AI Fears Trigger US Real Estate Stock Sell-Off: Commercial Property Sector Hit Hard

• US-listed real estate stocks experienced a sharp decline for the second consecutive session due to growing investor concerns about AI-driven disruption spreading to the commercial property space.
• Commercial real estate brokers like CBRE and Jones Lang LaSalle led the decline, with CBRE closing nearly 9% lower and Jones Lang LaSalle falling 7.6%.
• Analysts suggest investors are moving away from high-fee, labor-intensive business models perceived as vulnerable to AI disruption, following similar sell-offs in software and financial services.
• Concerns about AI's impact on employment and office usage are amplified by essays and statements from figures like Matt Shumer and Elon Musk, who predict AI could replace many white-collar jobs and office towers.
• Despite the sell-off, some analysts believe the market reaction might be overdone, citing solid real estate fundamentals and the potential for AI to create jobs and improve productivity for service providers.