Remy Blaire engages in a thought-provoking discussion with Luke Morris, Co-Founder and CEO of Capitalize.io, about the significant impact of artificial intelligence (AI) on the real estate sector. The conversation begins with an exploration of how AI is set to transform the traditionally illiquid asset class of real estate, which typically requires 30 to 90 days to close transactions. Luke emphasizes that AI will enhance liquidity by increasing confidence, speed, and trust in underwriting processes, ultimately leading to higher transaction volumes and reduced closing times.
As the discussion progresses, Remy prompts Luke to elaborate on the structural shifts in real estate demand driven by AI. Luke highlights the growing need for data centers and the pressures facing office spaces, suggesting that a reduction in the number of employees at certain companies will impact demand for office real estate. Despite these challenges, he reassures listeners that real estate remains a robust asset class, with people continuing to seek out experiences in retail environments.
Looking ahead to 2026, Luke predicts a significant recycling of assets across various sectors, including office, industrial, and multifamily properties. He foresees a necessary adjustment in rents and purchase prices to attract tenants back to urban centers like New York and San Francisco. This anticipated market reset presents a unique opportunity for buyers, especially in light of economic indicators suggesting a slowing economy.