A leading real estate investor is pushing back against widespread predictions that artificial intelligence will decimate office demand, arguing that history shows technological disruption often creates more jobs than it eliminates.
“To just assume that humankind will change thousands of years of existence in wanting to leave their homes and go and build things, to me, is a crazy proposition,” says Jesse Feldman, Partner at Brick & Timber Collective, a commercial real estate investment firm active in major tech markets.
According to Feldman, current fears about AI’s impact on office space ignore crucial historical patterns of how disruptive technologies actually reshape work. He points to multiple examples where automation fears proved unfounded:
“Look at how typewriters impacted secretarial work,” Feldman says. “The fear was mechanization would reduce the need for human clerks, and it created a whole new class of white collar work.” He notes similar patterns with robotics in manufacturing and the introduction of personal computers, each wave of automation ultimately generated new types of jobs rather than eliminating work entirely.
Feldman argues that while AI will certainly impact specific roles and functions, the fundamental human drive for in-person collaboration remains unchanged. He draws a parallel to early pandemic predictions about permanent remote work that failed to materialize.
“At the beginning of COVID, people thought that people would just work from home forever,” Feldman notes. “I think that broad brush application to how people want to work and people’s drive to build things and change the world around them, requires a level of sensitive thought analysis.”
While Feldman acknowledges investors must carefully evaluate AI’s potential impact on office demand, he suggests the current narrative of AI decimating office needs is oversimplified. His firm continues to see strong demand for well-located, highly amenitized office space in tech hubs.
“You do have to be thoughtful about where you’re going to see reductions in workforce and investment by investment,” Feldman says. “You need to take it very, very seriously.” However, he maintains that assuming technology will eliminate the need for physical workplaces ignores fundamental aspects of human nature and business innovation.
Through Brick & Timber’s experience developing office space for technology companies, Feldman has observed that even highly digitized businesses still value physical presence. Rather than replacing offices entirely, he believes AI and other technologies will reshape how space is used while maintaining the essential role of in-person collaboration.
“We need to consider how disruptive technologies or shifts actually impact what we do,” Feldman argues. “I think it’s a miscarriage of your responsibility if you’re not, but I think you have to wear a historical lens.”
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