Artificial intelligence and commercial real estate are probably the two most-discussed industries in America right now – and the loudest talk about both tends to be apocalyptic. But in commercial real estate, the current storm of uncertainty and illiquidity might be sowing the seeds for once-in-a-generation investment opportunities.
There are certainly commercial real estate segments in significant distress. Earlier this month the Boston Consulting Group published a report on what it called “the curse of Zombie Buildings.” The report argued that a host of structural changes— including the inevitable aggressive deployment of AI technologies — will mean that only 60% to 65% of current U.S. office space is needed in the future.
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