Commercial real estate markets are already feeling the effects of artificial intelligence, according to data highlighted by Cushman & Wakefield. Across multiple property sectors, emerging patterns suggest AI is reshaping demand, occupancy and investment performance in real time.
In the industrial sector, newer distribution centers, especially those built after 2019, are leveraging advanced automation technologies such as autonomous mobile robots and computer vision. Facilities larger than 500,000 square feet are particularly benefiting, with higher electrical capacity per square foot enabling cutting-edge operations. These properties are seeing faster leasing and occupancy gains compared with older, smaller warehouses, said Cushman & Wakefield.
Meanwhile, the office market continues to exhibit bifurcation. Class B and Class C vacancies remain elevated, but Class A absorption is improving, particularly in counties with high concentrations of technology, R&D and manufacturing employment. Since early 2024, these top-tier spaces have also captured a rising share of transaction activity, suggesting that companies are selectively targeting prime office assets in AI-heavy regions, the report said.
The multifamily sector is also experiencing an AI-related boost. Trophy-class apartments are seeing stronger rent and NOI growth than Class B and commodity Class A properties, even amid record deliveries over the past three years. Analysts link this outperformance, in part due to AI-driven gains in the stock market, which have increased the discretionary spending power of affluent renters.
The analysis is derived from Cushman & Wakefield's recently launched AI Impact Barometer, which tracks these shifts across industrial, office, multifamily and data center sectors, providing a data-driven lens on AI's real-time influence on CRE markets.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.