Shares of commercial real estate services companies fell, in the latest sell-off driven by fears about disruption from artificial intelligence.
After sharp declines on Wall Street, European stocks in the sector were hit on Thursday.
Shares in estate agent Savills fell 7.5% in London, while serviced office provider International Workplace Group, which owns the Regus brand, lost 9%.
The UK’s two largest property developers, British Land and Landsec, fell 2.6% and 2.4% respectively.
On Wall Street, real estate services companies fell for the second day in a row. CBRE shares plunged 12.5%, Jones Lang LaSalle lost nearly 11% and Cushman & Wakefield fell 9.1%, following even steeper declines on Wednesday.
Commercial real estate stocks became the latest sector to be hit by fears over the impact of rapid advances in AI, as sell-offs spread from legal software, publishing, analytics and data companies last week to insurance companies, price comparators and asset managers this week.
The decline in stocks was triggered by AI companies such as Anthropic, the company behind the chatbot Claudelaunching new tools, although news was limited on Thursday, leading analysts to say the selling was overdone.
AI has the potential to automate a wide range of office tasks and could lead to many job losses. Investors also fear that demand for offices could fall, which would be a big blow to real estate companies.
Jade Rahmani, commercial real estate analyst at New York-based Keefe, Bruyette & Woods, said: “We believe investors are moving away from expensive, labor-intensive business models seen as potentially vulnerable to AI-driven disruption. »
However, he believes that the liquidation “could overestimate the immediate risk of entering into complex deals, although the long-term impact of AI remains an expectation.”
Dallas-based CBRE on Thursday reported fourth-quarter revenue of $11.6 billion (£8.5 billion), up 12 percent, and basic earnings per share of $2.73, above analyst estimates. In 2025, revenues increased by 13% to $40.6 billion.
The real estate services company forecast 2026 earnings above Wall Street estimates, driven by strong momentum in leasing and facilities management as the number of data centers grows rapidly and billions of dollars are invested in AI infrastructure.
CBRE chief executive Bob Sulentic believes AI will benefit the firm in the long term, with its trading and investment businesses “most insulated” from disruption.
“Clients rely on CBRE to plan and execute complex transactions because of our creativity, strategic thinking, negotiation skills, deep market knowledge and extensive relationships. » he said. “None of this seems likely to be replaced by AI in the near future. »