Artificial intelligence has been present in commercial real estate for more than four decades, but only in the early 2020s did it move into broad industry awareness. Market commentary has often focused on AI-driven automation, such as faster loan processing, improved efficiency in routine tasks and quicker recognition of market and operating trends.
Research from Cushman & Wakefield suggests that the more significant impact over the coming years will center on productivity and business performance rather than purely technical advances. The firm emphasizes that AI is likely to influence how companies hire, allocate capital and pursue revenue growth, with commercial real estate responding to those changes in varying ways across asset types and markets.
According to Cushman & Wakefield’s white paper, “AI Impact on CRE: The Next 10 Years,” the technology is expected to widen the range of outcomes across regions, sectors, asset quality and investment strategies. AI is not projected to produce a uniform effect; instead, it may strengthen performance for some properties and strategies while intensifying challenges for others.
The analysis focuses less on how AI tools themselves will evolve and more on how the macroeconomy and business sectors could adapt to them, and what that adaptation might mean for fundamentals such as demand, utilization and performance across commercial property types. The report includes a comparative chart illustrating potential implications by asset class.
One of the key observations is that productivity gains often precede decisions around hiring and revenue expansion. In practice, this could translate into a lag between early AI-driven efficiency improvements and any material increase in space demand, particularly in office markets where occupier needs are already under reassessment.
The report also notes that the United States is likely to see earlier and stronger AI-related impacts, with Europe and Asia-Pacific expected to experience slower shifts due to differences in labor markets, regulatory frameworks and broader growth conditions.
Cushman & Wakefield argues that AI will change how work is organized more than how much space is ultimately required. As a result, occupiers are encouraged to focus on flexibility and optionality in their portfolios, favor higher-quality environments and prepare for demand that could recover unevenly by sector and location. Assets that accommodate technology integration, help attract and retain talent, and support collaboration are highlighted as better positioned.
On the investment side, the research indicates that AI will heighten the importance of asset selection and market timing. Office performance is described as highly scenario-dependent, while logistics and industrial assets are seen as comparatively resilient across multiple potential futures. Retail and multifamily outcomes are expected to remain primarily income-driven, with supply discipline identified as a key factor.
The report concludes that AI will not lead to a single predictable real estate trajectory. Instead, it is likely to introduce greater uncertainty and strategic complexity across global markets, requiring investors and occupiers to prepare for several plausible paths rather than relying on a single forecast.
