Going to be incredibly impactful to what is a highly liquid asset class, right?
This is not a stock that you buy simply like Apple on, you know, the Nasdaq, right?
This is an asset that takes anywhere from 30 to 90 days to close, but what AI will do is increase liquidity by increasing confidence, speed, trust.
Underwriting, right, so it's going to be incredibly impactful, and I believe it's going to do something where it's going to increase overall transaction volumes and decrease the time.
So there's a lot of opportunity for AI to come in and make improvements to what is the 2nd and 3rd largest asset classes in the world when it's residential and commercial real estate respectively.
So there's going to be a huge impact of AI on commercial real estate and real estate in general.
Yeah, and speaking of which, I do want you to expand on this.
So when we're talking about some of these structural shifts that are taking place in real estate demand, whether it's because of AI and the rise of demand for data centers, whether it's industrial or other assets, what do you think we will see when it comes to trends in real estate due to AI?
I think you're seeing it.
You made a good point about data centers for sure.
I think there's going to be a lot of pressure on office space just because I believe there will be a case where there's going to be less employees at certain companies, so there will be pressure on office, right?
So AI is going to have an impact, but overall, real estate is a very Strong asset class.
People will continue to purchase it.
I believe that people are going to go back to the office.
It might be slower than what people hoped.
People still want to have experiences when it comes to retail, but you're seeing it right now, I think AI, if you're just focused purely on AI, you're seeing that in the industrial data center explosion.
That's only going to increase for sure, right?
And then over time I think it's going to impact office, but ultimately I believe people are still going to want to go to shopping centers and have experiences when it comes to retail, right?
So, um.
That's where I think, you know, mostly right now it's going to be in data centers, right?
OK, and finally, the countdown is on to year end and that means we're looking ahead to 2026.
So what trends do you think will actually define the next phase of real estate and what do you expect to see?
You know, I think we're going to go into a big recycling of assets right now.
I think that ultimately in 206 and beyond when you focus on an asset class like office or even industrial or multifamily, I think that rents are going to have to come down, prices are going to come down on the purchase price, right?
So there's going to be a reset.
I believe there is going to be a reset, right, in order to get people to want to.
You know, move back to office in New York or San Francisco, right, or lease an industrial building or lease a retail building, right?
So prices have remained incredibly high, but there's going to be a reset, right, and there's going to be, I think, price drops in rents in order to get those tenants back in because tenants are under pressure right now.
If interest rates are going down, that means the Fed believes the economy is slowing.
That means the renter is not going to be as strong.
So we're going to go through a little bit of a recycling.
Of assets, but that means good opportunity for buyers.
OK, Luke, well, we will have to leave it there.
Thank you so much for joining us and thank you so much for sharing all of your insights.
Thank you, Rey.
