It is normal for traditional business models to go through periods of strain—this often drives innovation and reshaping. Some companies, however, end up swimming against the tide in their attempts to reinvent themselves. 

Despite operational results considered solid, companies such as CBRE and JLL are facing a confidence shock that goes beyond a slowdown in business. Investors are beginning to question whether the sector, as it has been designed over recent decades, remains economically defensible in a world increasingly shaped by artificial intelligence, automation, and shifting demand for traditional office space. 

The clearest signal has come from capital markets. In recent weeks, shares of real estate brokerages have been hit by aggressive sell-offs, wiping out tens of billions of dollars in market value—even after earnings reports that, on paper, showed no signs of imminent collapse. 

CBRE’s case is the most emblematic. The company reported record revenue, earnings above expectations, and double-digit growth in 2025. Even so, its stock was sharply punished, a reaction that suggests investor fatigue with the sector’s traditional narrative. 

According to a report by The Wall Street Journal, the wave of selling reflects an increasingly explicit fear: growing distrust of artificial intelligence within the real estate industry. 

Companies’ official messaging seeks to downplay the risk. Executives insist that AI will not replace brokers, that the “human factor” remains irreplaceable, and that real estate transactions are still too complex to be automated. CBRE CEO Bob Sulentic has gone so far as to say he sees “almost zero risk” of meaningful disintermediation. The market, however, appears far less convinced. 

Startups and AI-driven tools can already deliver, in a matter of hours, market analyses, feasibility studies, and reports that once required weeks of work by large teams. 

There is also a deeper risk, often relegated to a footnote on earnings calls: the possibility that the very demand base may shrink. If artificial intelligence allows companies to operate with fewer employees, the logical consequence is fewer offices, fewer square meters, and fewer lease contracts. Even though offices currently account for about 10% of CBRE’s net revenue, the segment remains one of the sector’s largest fee generators. 

Analysts at firms such as Raymond James and William Blair continue to reiterate positive recommendations, citing revenue diversification, the growth of data centers, and the expansion of facilities management services. Yet the stock reaction suggests the market is already pricing these drivers as insufficient to offset long-term risks.