"Commercial property stocks have become the latest sector to be hammered by fears over the impact of rapid advances in AI, as the sell-off spread from legal software, publishing, analytics and data companies last week to insurance firms, price comparison sites and wealth managers this week. The share declines were sparked by AI firms such as Anthropic, the company behind the chatbot Claude, releasing new tools, although there was limited news on Thursday, leading analysts to argue that the sell-off was overdone."
"AI has the potential to automate a wide range of office-based tasks and could lead to swathes of job losses. There are also concerns among investors that demand for offices could fall, in a blow to property companies. Jade Rahmani, commercial real estate analyst at New York-headquartered Keefe, Bruyette & Woods, said: We believe investors are rotating out of high-fee, labour-intensive business models viewed as potentially vulnerable to AI-driven disruption."
Shares in commercial property services companies tumbled amid fears of disruption from artificial intelligence. European and US property service stocks experienced steep declines, including Savills (-7.5%), International Workplace Group/Regus (-9%), British Land (-2.6%), Landsec (-2.4%), CBRE (-12.5%), Jones Lang LaSalle (nearly -11%) and Cushman & Wakefield (-9.1%). The sell-off extended from legal software, publishing, analytics and data firms to insurance, price comparison sites and wealth managers. New tools from AI firms such as Anthropic helped spark the moves despite limited fresh news. Analysts warned the market reaction may overstate immediate risks to complex deal-making while long-term impacts remain uncertain.
Read at www.theguardian.com
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