Lates News

Due to the increase in the utilization of artificial intelligence tools, there is concern among traders that it may weaken the demand for office space. Commercial real estate stocks plummeted significantly on Thursday, further expanding the selling spree that started from a corner of the market on Wednesday. Major commercial real estate service company CBRE Group saw its stock price plummet by 15% at one point, with a cumulative decrease of 26% in two days, marking the sharpest decline since the 2008 financial crisis. Jones Lang LaSalle dropped by 14% on Thursday, Cushman & Wakefield fell by 13%, and Newmark Group by 11%. Analyst Jeffrey Langbaum stated, "Concerns about the increase in AI applications leading to a decrease in office space demand have been around for a while, so this is not something new. However, after the brokerage sector experienced a sell-off yesterday, we are seeing this fear spreading to actual office space providers." Morningstar analyst Sean Dunlop added, "The entire financial services sector is currently in a 'shoot first, ask questions later' mode, with investors reacting drastically even to slight performance declines out of a widespread fear of the disruption caused by AI."