Over the past few months, one of the more interesting shifts in the commercial real estate industry hasn’t been about where the deals are now being done. It’s been about how the big brokerage companies are now talking about the future of the entire industry. Firms like CBRE, JLL, Cushman & Wakefield, Colliers, and others, are now publicly stating that they’re making a real and very strategic commitment to implementing AI, and that’s worth everyone paying attention to.

So if you’ve been in this industry for a while, and you’ve witnessed the impact that AI has been having, not only in the business world, but within people’s personal lives, too, then you understand the big impact that AI will be having in commercial real estate also.

However, at the same time, our industry definitely tends to be slower to embrace new technology, when comparing it to other industries. 😊

But AI Isn’t Just a Niche Anymore — It’s Now Becoming Strategic

For a while, AI in CRE was something individual brokers just played with — a ChatGPT prompt here, a quick underwriting model there. But now we’re seeing enterprise-level deployment and executive-level talk about AI becoming a core essential. Firms are embedding AI into data management, analytics, and even operations, and will be adding value creation tools for clients and brokers, too.

So Why Are CRE Executives Now Talking About AI Publicly?

There are primarily two reasons:

1) They now see it becoming a necessary competitive edge. Executives at major brokerages know that AI-powered analytics, research, and portfolio insights can differentiate their firm’s services. Whether it’s faster underwriting, deeper market forecasting, or smarter lease optimization, AI is an efficiency and intelligence tool that owners and occupiers increasingly expect.

2) There’s external pressure happening, too. It’s not just internal ambition; it’s market perception. The markets have shown sensitivity to AI disruption narratives across service industries, and when capital markets start asking questions, leadership teams tend to answer — loudly, and clearly.

This dynamic is crucial for brokers to understand: the discourse around AI isn’t just technology hype — it’s tied to how investors, clients, and competitors are now valuing CRE brokerage businesses overall.

But Let’s Be Real — This Is Still in Its Early Stages

If you’re wondering whether AI will soon be replacing brokers, the answer is “No.” Organization-wide adoption is still slow, and meaningful, scalable deployments — ones that materially shift core services like investment sales or leasing — are still in their early stages.

The current reality in large brokerages using AI is experimentation, and beginning integration, but not wholesale replacement of tried-and-true processes. However, at the same time, AI has begun to reshape workflows like research, valuation modeling, underwriting, and data synthesis — the stuff that eats up hours in every deal cycle. But complex negotiations and relationship-driven strategy are still, for now, relying deeply on human interactions.

This is definitely a good thing for commercial brokers, because if AI was already at the point of replacing human interaction with your clients and prospects, we’d be having a very different discussion right now. What we’re seeing instead is technology augmenting what great brokers already do — giving you more sophisticated tools to analyze both markets and opportunities much faster.

But Here’s the Bigger Narrative

In your conversations and meetings, you’re going to begin hearing more about subjects like:

  • AI-augmented research and analytics — for a faster, more insightful look at comps and market trends.
  • Operational AI — predictive maintenance, tenant experience automation, and building performance insights.
  • Internal efficiency AI — tools that make brokers and analysts more productive without replacing their current expertise.

But within the industry, AI really isn’t the end product — it’s part of how we’ll now deliver the end product and services much better.

What This Now Means for You in Moving Forward

  • Many brokers are still fumbling about on this subject, but they’re understanding that AI is now big, and that it’s now on the minds of their clients and prospects.
  • Brokers still have yet to determine how they can best seize upon this new opportunity, and communicate to their clients and prospects how their mastery of AI now sets them apart, as being the best choice that owners and principals could ever make in a commercial real estate broker.
  • And finally, the broker who masters this technology as it applies to commercial real estate, and effectively communicates this knowledge to their clients and prospects, will now begin standing out above and beyond their competitors, as being the best broker within their market.

So now in putting this all together, if this is a subject that interests you, I’ve discovered a solid online platform that’s doing a tremendous job of teaching commercial real estate brokers, investors, and developers, how to implement leading AI technologies into their own businesses, and if you’re interested in being directed towards this platform, send me an email.

_______________

If you’re interested in becoming more effective with your prospecting, and in getting more listings, closing more deals, and making more money, send me an Email or give me a call!

“Jim has me much more focused on doing the activities that generate new listings for me, in addition to doing the activities that have me sell those listings.”

Chris Sands
Sands Investment Group