By raising overall occupier demand, commercial real estate should benefit from the boost to economic growth that AI will provide. But some sectors will face challenges, particularly during the transition period. Chief among them is the office sector, where there is a risk that the jobs created from AI will be less office-based than the ones destroyed. Distribution warehouses will also depreciate faster. But retail will benefit from increased economic growth and higher earnings, and higher productivity will give consumers more time to partake in recreational activities, aiding the hotel and leisure sector.
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