US’ real estate stocks sink as worries about AI risks spread across Wall Street
Commercial real estate stocks nosedived Thursday as traders worried about risk to demand for office space from higher use of artificial intelligence tools, broadening a selloff that began Wednesday in small corner of the market.
Shares of CBRE Group, a major commercial real estate services company, fell 8.8%, bringing the two-day decline to 20% in the worst such move since 2020. Jones Lang LaSalle fell 7.6% Thursday, Cushman & Wakefield dropped 12% and Newmark Group slid 4.2%.
An index tracking stocks of office real estate companies retreated 4.2%. Major decliners in the index include SL Green Realty, Cousins Properties, Kilroy Realty and BXP.
