Real Estate Stocks Sink on Worry About AI Risk to Office Demand

February 13, 2026 - 10:48

Shares of major real estate firms tumbled sharply on Thursday, reflecting growing investor anxiety that the rapid rise of artificial intelligence could accelerate a decline in demand for office space. The sell-off highlighted fears that AI-driven productivity gains may enable companies to operate with significantly smaller physical footprints.

Jones Lang LaSalle Inc. led the declines, plummeting as much as 14% during the trading session. Cushman & Wakefield Ltd. followed closely, dropping 13%, while Newmark Group Inc. sank 11%. The downturn was broad-based across the sector, with notable real estate investment trusts like SL Green Realty Corp., Cousins Properties Inc., Kilroy Realty Corp., and BXP Inc. all experiencing significant losses.

Market analysts point to a confluence of factors unsettling the commercial real estate market. The persistent trend of hybrid and remote work, already a major headwind, is now being compounded by the potential for AI to automate tasks and further reduce the necessity for in-person staff. This technological shift threatens to exacerbate high vacancy rates and place downward pressure on property values and rental income. The steep drop in stock prices signals a market reassessing the long-term viability of traditional office assets in an increasingly digital and automated economy.