Artificial Intelligence drives a new era for commercial real estate

According to PIMCO, the expansion of AI applications is expected to create new opportunities in specific commercial real estate segments, while other sectors will face growing challenges as demand for workplaces, infrastructure and supply chains continues to evolve.

Real estate assets set to benefit

The investment firm estimates that the biggest beneficiaries of AI-driven growth will be properties linked to the digital economy. At the centre of this trend are data centres, which require increasingly significant investment due to the greater computing power needed to support AI applications.

At the same time, modern logistics facilities, warehouses and industrial properties supporting e-commerce and new supply chain models are expected to benefit from favourable prospects.

New challenges for office markets

By contrast, the office sector continues to face challenges, as remote working and hybrid employment models continue to affect demand.

However, PIMCO notes that high-quality, premium office buildings offering energy efficiency, advanced technological infrastructure and flexible working environments are expected to retain their appeal compared with older properties.

Selective investment approach

The investment firm emphasises that the new era will require greater selectivity from investors.

Success will no longer depend solely on a property’s location, but also on its ability to meet the demands of the digital economy, the energy transition and emerging technological applications.

According to PIMCO, artificial intelligence is one of the key factors reshaping the commercial real estate market, creating new investment opportunities while also increasing demand for properties with modern infrastructure, advanced capabilities and high operational efficiency.