In Los Angeles, industrial is seeing rent declines.

But don't expect a sudden additional buildout of medical offices.

Banks currently aren't writing off loans, but that could eventually happen.

The buildup is in primary markets, Class-A properties, and urban areas.

Increasingly, technology can push businesses out of the way, allowing interactions between service providers and customers.

This is the nightmare scenario that's been worrying industry pros for months.

The combination of impact on landlords and structural changes in office makes understanding the risk much harder.

Currently, AI use in CRE is largely mundane. The near future may change that, but firms will have to be ready.