TL;DR

Shares in commercial property services firms have been hit hard as the AI disruption sell-off widens beyond tech. Savills fell 7.5% in London, CBRE plunged 12.5% on Wall Street, and serviced office provider IWG (Regus) lost 9%. Analysts say the sell-off may overstate the immediate risk.

The Sell-Off Spreads

After starting in legal software, publishing, and analytics companies last week, investor fears about AI disruption have now reached commercial property services, insurance, price comparison sites, and wealth management.

In London, Savills dropped 7.5%, IWG lost 9%, and the UK’s two largest property developers — British Land and Landsec — fell 2.6% and 2.4% respectively. On Wall Street, CBRE shares plunged 12.5%, Jones Lang LaSalle lost nearly 11%, and Cushman & Wakefield fell 9.1%.

The declines were sparked by new AI tools from companies including Anthropic, though analysts noted there was limited fresh news to justify the scale of the sell-off.

Two Competing Fears

Investors appear to be pricing in two separate risks. First, AI could automate much of the office-based work that property services firms bill for — valuations, market analysis, and lease management. Second, if AI reduces the number of office workers overall, demand for commercial space could fall permanently.

“We believe investors are rotating out of high-fee, labour-intensive business models viewed as potentially vulnerable to AI-driven disruption,” said Jade Rahmani, commercial real estate analyst at Keefe, Bruyette & Woods.

However, Rahmani believes the sell-off “may overstate the immediate risk to complex deal-making.”

CBRE itself reported strong Q4 results — revenue up 12% to $11.6bn — and forecast 2026 profits above analyst estimates, boosted by leasing, facilities management, and the rapid expansion of data centres.

Looking Forward

CBRE CEO Bob Sulentic argues the firm’s transaction and investment work is “most protected” from disruption, pointing to creativity, negotiation skills, and relationships that AI cannot easily replicate. Whether investors share that confidence will depend on how quickly AI agent capabilities mature in the months ahead.