In recent years, discussions about artificial intelligence (AI) in commercial real estate (CRE) have largely revolved around efficiency: automating processes, reducing operational costs, and enhancing decision-making. However, a more pressing and impactful application lies in how AI can be used to support tenants in staying viable—a critical consideration for property owners seeking to attract and retain tenants in an increasingly competitive market.
The adoption of AI is no longer just a novelty or a future trend. For many industries, it has become a necessity. Tenants across sectors like healthcare, industrial, and retail are embracing AI to improve operations and manage labor shortages. CRE landlords must recognize this shift and provide the infrastructure and support required to accommodate AI-driven technologies. Failure to do so risks alienating prospective tenants who are dependent on these advancements.
The Evolving Landscape of AI in CRE
Current conversations around AI in CRE often include concerns about ethics and feasibility. For instance, the Securities and Exchange Commission has flagged “AI washing”—exaggerated claims of AI capabilities—as a growing issue. Meanwhile, state-level regulations are becoming increasingly fragmented and complicated, and research indicates that generative AI still struggles with tasks requiring mathematical reasoning. These are legitimate concerns, but they should not overshadow the practical role AI can play in supporting tenants.
Beyond regulatory and technical challenges, tenants are increasingly looking for properties equipped to handle the demands of AI-powered operations. Factors such as robust internet connectivity, sufficient power supply, and digital security measures are no longer optional but essential. For example, a healthcare facility that relies on AI transcription tools for clinical documentation—a growing trend highlighted in CBRE’s 2025 U.S. healthcare CRE outlook—needs seamless access to high-speed internet and reliable power. These tools not only reduce administrative burdens but also address labor shortages by enabling staff to focus on higher-value tasks.
AI in Healthcare: A Case Study
Healthcare tenants exemplify the growing reliance on AI. Hospitals and clinics increasingly deploy AI tools to streamline operations and deliver better patient care. One example is the use of AI to transcribe patient-provider conversations into clinical documentation fields, which can alleviate administrative burdens in a tight labor market. Similarly, advanced AI systems enable a single anesthesiologist to monitor multiple procedures simultaneously or allow robotic systems to perform tasks like hair transplants under a surgeon’s supervision.
For property owners, accommodating healthcare tenants’ AI needs means going beyond traditional building features. It requires ensuring uninterrupted power, designing spaces with advanced digital security measures, and offering scalable IT infrastructure. Those who invest in these capabilities can position their properties as indispensable assets in the healthcare sector.
Industrial Tenants: Driving Efficiency with AI
The industrial sector is another area where AI is making a significant impact. Tenants increasingly rely on AI to optimize inventory management, automate picking processes, and set delivery schedules. Self-driving vehicles are being integrated into warehouses to transport freight pallets, and some even perform deliveries. Bain & Co.’s Global Machinery & Equipment Report 2024 found that AI adoption in advanced manufacturing can lead to productivity gains of 30% to 50%, with three-quarters of executives citing AI as a top priority in engineering and R&D.
Landlords with industrial properties can attract AI-reliant tenants by providing spaces tailored for automation. High ceilings, open layouts, and reinforced flooring to support heavy machinery are critical physical features. Additionally, these tenants require cutting-edge connectivity solutions to power AI-driven systems and ensure seamless communication between devices.
Retail and the Rise of Robotics
In the retail sector, AI and robotics are transforming operations. Robots already perform routine tasks like stock handling and inventory management in grocery stores. In quick-service restaurants (QSRs), AI-powered systems prepare food and manage orders in response to rising labor costs and minimum wage legislation. These trends are forcing retail tenants to adopt AI technologies to remain competitive.
Property owners can support retail tenants by providing spaces designed for robotic systems. This includes offering adaptable layouts for automation, access to stable power sources, and high-speed internet. As more retailers transition to AI-driven operations, landlords who anticipate these needs will gain a competitive edge.
The Landlord’s Role in the AI Revolution
As AI becomes integral to tenant operations, CRE landlords must evolve to meet new demands. Tenants need more than square footage; they need properties equipped to handle the technological infrastructure AI requires. By investing in features like robust internet connectivity, scalable IT systems, and advanced security measures, landlords can position their properties as hubs for innovation.
Moreover, property owners must stay ahead of market trends by understanding the specific AI needs of different tenant types. For healthcare tenants, this might mean creating spaces designed for advanced robotics or telemedicine hubs. For industrial tenants, it could involve offering properties optimized for autonomous vehicles and automated warehouses. And for retail tenants, it might mean providing layouts that accommodate robotic stock handlers and self-checkout stations.
The rise of AI in CRE is not just about making buildings smarter; it’s about enabling tenants to thrive in an AI-driven world. By investing in the infrastructure and design features necessary to support AI technologies, property owners can create spaces that meet the evolving needs of their tenants. In doing so, they can not only attract high-quality tenants but also ensure their long-term success in an increasingly competitive market. Supporting AI isn’t just a technological upgrade; it’s a strategic imperative for the future of CRE.
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