I read a recent CoStar article discussing how commercial real estate deal activity is picking up again, but so are concerns about artificial intelligence and what it might mean for brokerage firms.
Some investors reacted quickly, assuming technology will significantly reduce the need for human advisors. Brokerage stocks dipped before stabilizing again.
That reaction tells me something important… people still don’t fully understand where real value is created in commercial real estate.
I use AI tools regularly. They help with drafting, organizing information, and speeding up analysis. Certain parts of this business should absolutely become more efficient. If software can review documents faster or help summarize market data, that’s helpful.
But efficiency and replacement are two very different things. Commercial real estate is not just an information business, it’s a judgment, trust, and decision-making business.
Yes, Some Parts of the Work Will Change
There are pieces of the job that are structured, repetitive, and process-driven. Those will continue to evolve.
Things like:
These tasks support deals, but they are not the deals themselves. The highest value in our industry shows up when uncertainty enters the room, which happens in every meaningful transaction.
Let me share a few examples from my own work.
Multiple offers are rarely just about price
Recently we marketed a property that generated multiple offers, several at or above the asking price. On paper, more than one buyer looked equally strong. However, the real evaluation involved questions that do not show up neatly in a model:
Helping a seller navigate those decisions requires experience, pattern recognition, and a clear understanding of human behavior. It also requires calm communication when emotions run high.
Some buildings do not fit the textbook
We once represented a large medical office building with several challenges. The footprint was difficult, construction costs were elevated, and most medical users in that market preferred ownership over leasing. Rental rates needed to be higher than surrounding properties to justify the economics.
The comparable data did not paint an encouraging picture. What moved that deal forward was not analysis alone; it was positioning, persistence, relationships, and creative structuring. Over time we leased roughly 72,000 square feet and ultimately sold the building to the tenant for $15 million.
That outcome was built through conversations, adjustments, and strategic judgment along the way.
Sometimes the right investment is about peace of mind
I am currently working with an elderly 1031 exchange buyer whose priorities extend well beyond financial return. Health concerns, family involvement, and long-term simplicity all play major roles in the decision.
Yes, we analyze the numbers carefully. But we also weigh stress level, management burden, liquidity, and exit flexibility. Part of the job is helping someone choose an investment they can feel comfortable holding… not just one that performs well on paper.
That kind of guidance depends on understanding people, not just projections.
Even straightforward leases involve layers of judgment
In another situation, we are negotiating a replacement tenant paying meaningfully higher rent than the current occupant. At first glance that sounds simple.
In reality, we must resolve unpaid condo balances, negotiate improvements requested by the incoming tenant, manage timing, and maintain leverage throughout the process. Every step involves judgment about tone, sequencing, and negotiation posture. Those decisions shape outcomes in ways that cannot be standardized.
Where Real Value Lives
If your role is limited to providing information, technology will continue to compress that function. Information is more accessible than ever, but most clients are not hiring us for raw information. They’re hiring us to interpret it, apply it, and stand behind decisions when the stakes are high.
Clients want someone who can:
My View of the Road Ahead
Technology will absolutely make commercial real estate more efficient. It will shorten timelines, improve analysis, and reduce manual work. It will also raise expectations for everyone in the business.
But it doesn’t eliminate the need for experienced advisors. If anything, it increases the importance of judgment, communication, and strategic thinking. The professionals who will thrive are the ones who use better tools while continuing to focus on the human side of complex decision-making.
That combination has always defined this business, and it still does.
Justin Langlois, CCIM is a Commercial Real Estate Advisor with Stirling Investment Properties servicing Baton Rouge, Louisiana and surrounding markets. Please reach out to Justin to discuss your real estate investment strategies.