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The Demarcation Line of AI in Commercial Real Estate

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For decades, commercial real estate has witnessed technological advancements that have dramatically shifted how the industry conducts business. Today’s more seasoned brokers have now lived through an information age that has transitioned from relying on index cards to online databases, from physical maps to GPS, from fax machines to email, and all points in between. When we checked in with some of Savills most experienced leaders about artificial intelligence, however, we discovered a spectrum of opinions regarding the new frontier. Despite this range, one viewpoint remained consistent: As much as AI has catapulted efficiencies in many ways, the human relationship is the heartbeat behind every transaction.

Joe Learner, Chairman of North American Brokerage, recognized how AI can function as a tool to boost efficiency and effectiveness–particularly in terms of time saved–but he remains cognizant of its limitations.

“What AI can’t do is make a friend,” said Learner. “If I call someone, they’ll pick up specifically because we have a relationship. That’s also why they’ll disclose things to me that AI wouldn’t have access to. And that question of trust extends beyond whom the client trusts and into whether brokers themselves trust AI enough to adopt it broadly.”

Learner went on to explain that AI is creating a “clear demarcation line” in the industry and, depending on where professionals fall on that line, they are either “extinct, endangered or enabled.” He advises that when brokers use AI to collect more data or distill it differently to gain a new perspective, they land cleanly on the “enabled” side of the demarcation line.

In a recent survey on AI adoption, Commercial Observer reported that 44% of firms said that their investment committees distrust AI-generated analysis, while only 27% trust the technology for financial underwriting. Major concerns included unreliable outputs, integration challenges and data privacy issues. Notwithstanding this skepticism, AI is still seen as a gamechanger in many ways.

A May 2025 CoreNet survey produced more receptive findings. When participants were asked if AI would reshape the industry, 25% believed it would “revolutionize the profession,” and 47% felt it would bring “major improvements.” Maxine Rosen, Associate Director in Savills New York office, describes using AI to move faster through the “repetitive, tedious and manual” work that has long been part of brokerage. Lease abstracts, company research, prospecting and presentation development can all be accelerated, creating more time for the conversations and strategy that move deals forward.

“You should be serious about incorporating AI into your workflow,” Rosen said. “When competitors are using AI to save time and surface insights faster, standing still becomes its own disadvantage.”

This phenomenon is familiar to many CRE professionals. Andy Lustgarten, Executive Managing Director in Los Angeles, recalls CoStar’s arrival as a major turning point in the industry. Before centralized databases, brokers relied on calls, books and manually updated market information. While CoStar did not eliminate the need for brokers, it did provide avenues for them to be better informed. Lustgarten stresses that even with more information available, however, the most important parts of brokerage still require human judgment. Negotiation, he says, remains “a game of poker,” where reading the room, understanding leverage and interpreting non-economic terms still depend on experience and relationships.

Arthur Mirante, Vice Chairman, North America, offers a similar perspective. Having witnessed multiple waves of technology reshape the industry, he views AI as another tool that can enhance, not erase, the broker’s role. In his view, trust is built over the years through demonstrated behavior.

“No client is going to hire or trust an advisor solely because of their AI capability,” said Mirante. “They will choose the person who responds quickly, brings strong data, demonstrates knowledge and knows how to use those resources in the client’s service.”

Behind the scenes, Savills is investing in the infrastructure to make this shift practical. Sarah Dreyer, EVP & Chief Information Officer for North America, has led the rollout of an internal AI toolbox, including tools like Savills Claude and SavillsGPT, designed to accelerate the work brokers already do rather than replace the judgment behind it. Lease abstraction, market research, and presentation development are tasks that AI can help free advisors to redirect their time towards client strategy and relationship building. Data security has been central to every decision during development, ensuring that proprietary client and company information stays protected as these tools scale.

"Our brokers sit on top of proprietary data and decades of market insight that no public AI model can replicate," said Dreyer. "The opportunity is in combining that advantage with tools that let them move faster and think bigger."

Widespread adoption will still require some caution. Derrell Curry, Vice Chairman in Savills Houston office, points out that brokers handle sensitive legal and business documents, so AI must be used thoughtfully. Lease abstracting and correspondence may be valuable use cases, but professionals need to remain mindful when using AI-generated work product in client-facing settings. Accountability remains with the professionals, not the technology.

For brokers, the path forward increasingly points to AI to create more time and capacity for the work that only people can do–building trust, asking better questions, interpreting what they are told, negotiating strategically and creating value through relationships.

AI is changing the industry's workflow, but it does not change the heart of the business. The brokers who understand that and learn to use AI as an extension of their expertise will not be replaced by technology. They will be enabled by it.

 

 

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