{"id":1004776093,"date":"2025-10-29T19:26:41","date_gmt":"2025-10-30T03:26:41","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004776093"},"modified":"2026-02-26T11:26:14","modified_gmt":"2026-02-26T19:26:14","slug":"how-much-office-space-does-a-chatbot-need","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/","title":{"rendered":"How Much Office Space Does a Chatbot Need?"},"content":{"rendered":"\n
\"Accenture\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
KBS upgraded amenities at Accenture Tower, a 42-story office skyscraper located in Chicago. Amenities include side-by-side spaces for conferencing and private work. As AI is increasingly integrated into the workforce, spaces like these will become the norm for any office building looking to retain tenants as lease sizes shrink.
Image courtesy of KBS Realty Advisors <\/em><\/figcaption><\/figure>\n\n\n\n

The widespread adoption of artificial intelligence by many white-collar industries has the potential to cause widespread disruption of the office market. But it may not be what you think.<\/p>\n\n\n\n

A previously feared mass replacement of entry-level analytical jobs remains unlikely in the near term, but what\u2019s more likely to persist is a recalibration of leasing strategies, property management techniques and space layouts to adapt to a more flexible, partially automated workforce.<\/p>\n\n\n\n

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While predictions around the specific impacts of automation adoptions may vary, experts agree that the sector may experience a more pronounced flight to high quality, with technology-centric spaces that operate more as dynamic business than static investments. In other words, it\u2019s not so much a robot takeover as it is an accommodation.<\/p>\n\n\n\n

\u201cYou think about roles that, to start, have more repetitive types of activities, such as call center staff, analysts, data entry, but it\u2019s going to move up the value stream over time,\u201d said Josh Herrenkohl, a senior managing director in FTI Consulting\u2019s Real Estate Solutions practice. \u201cIt\u2019s more likely to impact every industry and perhaps all levels of industry.\u201d<\/p>\n\n\n\n

Present, meet future<\/h2>\n\n\n
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Josh Herrenkohl, senior managing director in FTI Consulting\u2019s Real Estate Solutions practice, predicts a more dramatic bifurcation of the sector due to AI usage, one that could surpass even the pandemic.
Image courtesy of FTI Consulting<\/em><\/figcaption><\/figure><\/div>\n\n\n

Despite rapid advancements in AI since ChatGPT\u2019s launch three years ago, the actual threat of near-term mass unemployment and sky-high vacancy rates is small. An October 2025 report from Brookings Institution found minimal changes to the proportion of workers in the industries most exposed to AI from January 2023 through July of this year. Highly exposed, high-usage industries include sales, office administration, health care, tech and finance.<\/p>\n\n\n\n

Over the next three to five years, however, the story begins to change more dramatically as AI becomes more agentic and better equipped to handle more repetitive jobs, while assisting, if not replacing, more complex tasks.<\/p>\n\n\n\n

According to Indeed\u2019s 2025 AI at Work Report, more than a quarter of jobs posted on the site last year were listed as being likely to be \u201chighly\u201d transformed by generative AI, while 54 percent will probably experience a \u201cmoderate\u201d transformation.<\/p>\n\n\n

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What\u2019s most at risk are entry-level, apprentice-style white-collar jobs such as customer service representatives, paralegals and analysts. And from the perspectives of some workplace strategy experts, this is already a reality.<\/p>\n\n\n\n

\u201cMost of our client organizations are focused on elements like drafting, summarizing research, code generation, report creation and email triage and drafting,\u201d noted Ram Srinivasan, a managing director of consulting and workforce optimization expert at JLL.<\/p>\n\n\n\n

Srinivasan sees agentic models as the next logical step. \u201cAutonomous agents that are able to create and execute workflows for you and cognitive tasks could get completely modified through these models,\u201d he said.<\/p>\n\n\n\n

On the ground, the implementation remains at the surface level, but even most owners and operators anticipate a sudden, dramatic change. \u201cWe\u2019re seeing implementation by law, accounting and financial services firms,\u201d observed Ran Eliasaf, founder & managing partner at Northwind Group. \u201cAnd currently, we aren\u2019t seeing any immediate effects on leasing volumes, but two years from now, it’ll probably minimize (some) entry-level positions.\u201d<\/p>\n\n\n

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Ran Eliasaf, CEO, founder & managing partner at Northwind Group, anticipates a potential 20 percent decrease in office leasing in the next three years.
Image courtesy of Northwind Group <\/em><\/figcaption><\/figure><\/div>\n\n\n

Eliasaf\u2019s firm has invested in Manhattan office properties, which are generally faring much better than their counterparts in other CBDs. \u201cWe think it’ll impact the leasing market, even if volumes are quite healthy right now.\u201d<\/p>\n\n\n\n

Nowhere is this idea more pronounced than the tech sector, which has seen more than 107,000 job cuts this year. Employment consultancy firm Challenger, Gray & Christmas tracked 7,000 job cuts due to AI specifically. On the agentic front, Salesforce CEO Marc Benioff announced in August that his company cut its customer service headcount nearly in half due in part to its implementation of AI agents that interact with customers directly.<\/p>\n\n\n\n

As for the impacts on office leasing, look no further than life science, perhaps the most exposed industry of all. Challenger, Gray & Christmas\u2019 2025 life science market update found that the share of biotech-related venture capital investments skyrocketed in the period from 2022 through 2024. But companies are leasing one-third less space than comparable industries.<\/p>\n\n\n\n

\"Accenture\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
KBS upgraded amenities at Accenture Tower, a 42-story office skyscraper located in Chicago. Amenities include side-by-side spaces for conferencing and private work. As AI is increasingly integrated into the workforce, spaces like these will become the norm for any office building looking to retain tenants as lease sizes shrink.
Image courtesy of KBS Realty Advisors <\/em><\/figcaption><\/figure>\n\n\n\n

What\u2019ll happen to office spaces?<\/h2>\n\n\n\n

Increasingly advanced uses of AI introduce a degree of uncertainty to commercial real estate that hasn\u2019t been seen since the pandemic. In fact, the sheer pace at which the technology is evolving could completely warp lease durations as well as space needs.<\/p>\n\n\n\n

\u201cEven companies that don\u2019t have AI to replace people specifically are much more worried about expanding, hiring or keeping people and signing long-term leases because they have no idea what their needs will be 18 months out,\u201d said author & technology consultant Dror Poleg. Consequently, \u201cthe notion of a company being able to sign a 10- to 20-year lease is unimaginable at this point,\u201d he added.<\/p>\n\n\n

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\"Dror\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
With AI changing office space so rapidly, \u201cthe notion of a company being able to sign a 10- to 20-year lease is unimaginable at this point,\u201d said author & technology consultant Dror Poleg.<\/figcaption><\/figure><\/div>\n\n\n

On a smaller scale, these trends are already playing out, with both new office leases and renewals falling below historical means, according to data from Avison Young.<\/p>\n\n\n\n

\u201cYou\u2019ll see a smaller footprint in core urban markets, on the order of 30,000 square feet or more,\u201d Eliasaf predicted. \u201c(They\u2019re) not being cut in half, but that\u2019s a possible 20 percent impact on office leasing. I\u2019m not saying that that\u2019s going to lead to 20 percent unemployment, but people will have to both upscale and rescale their spaces.\u201d<\/p>\n\n\n\n

If that sounds familiar to you, it probably is. Herrenkohl predicts that the sector could experience a bifurcation akin to the one that\u2019s occurred in the years since the pandemic\u2014but more pronounced. In other words, the urban, Class A amenity-driven buildings will fare well, while the B and C assets will suffer.<\/p>\n\n\n

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When ChatGPT was still in its infancy, a 2023 report from Cushman & Wakefield found that 25 percent of the nation\u2019s office stock\u2014roughly 1.5 billion square feet\u2014could be functionally obsolete by 2030.<\/p>\n\n\n\n

\u201cWhen demand shrinks, tenants look for smaller footprints with better amenities \u2014even if they’re paying more on a price per square foot basis,\u201d noted Herrenkohl.<\/p>\n\n\n\n

Paradoxically, this could very well lead to competition among high-dollar tenants for the most exclusive office spaces, often located in top-tier markets such as New York City, Boston, Miami and the San Francisco Bay Area, home to the largest chunk of the nation\u2019s AI-related office leasing.<\/p>\n\n\n\n

On the other hand, Poleg predicts an intensification of trends governing coworking and suburban office spaces, where employees favor space closer to where they live in exchange for coming to the office more frequently.<\/p>\n\n\n\n

\u201cIt\u2019s similar to the remote and hybrid work story, where people want to move closer to residential areas and near mixed-use spaces,\u201d he said.<\/p>\n\n\n\n

Learning curves<\/h2>\n\n\n
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\"Marc\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
Real estate operations is one of the industries most exposed to AI, according to Marc DeLuca, CEO & Eastern regional president for KBS.
 Image courtesy of KBS Realty Advisors <\/em><\/figcaption><\/figure><\/div>\n\n\n

Even if the dreaded layoffs never happen, office operators need to anticipate how these trends will end up manifesting themselves, particularly regarding employee habits and workflows. \u201cIn the long term, the most enduring effects of AI on office real estate are likely to be structural rather than temporary,\u201d noted Marc DeLuca, CEO & Eastern regional president for KBS.<\/p>\n\n\n\n

And real estate is expected to be a much higher-touch business than it is now. \u201cThere will be fewer customers, who are giving you less than you give them, while they expect you to do more than they ever did,\u201d Poleg added.<\/p>\n\n\n\n

In order to get AI models to act on their own, they first need to be trained around their specific workflows. \u201cWe very well may be in a situation where digital employees will be working alongside human employees,\u201d Herrenkohl predicted. \u201cIt will be important to have areas that are conducive to that.\u201d For Herrenkohl, this includes large, open meeting spaces and areas for training and collaborating.<\/p>\n\n\n\n

\"Robots\n\t\t\t\n\t\t\t\t\n\t\t\t<\/svg>\n\t\t<\/button>
Robots in the office.
All robot images by Matsu5\/iStockphoto.com<\/em><\/figcaption><\/figure>\n\n\n\n

But meeting these needs can\u2019t happen in a vacuum. AI-friendly offices need to have the infrastructure necessary to support these changes. While strong amenity offerings, proximity to transportation and optimized foot traffic are table stakes, high-bandwidth data-transfer capabilities, sufficient power, cooling and security are musts not only due to AI\u2019s energy consumption but also in the increasingly uncertain leasing environment that tenants will likely find themselves in. \u201c(They) increasingly expect flexible infrastructure\u2014from adaptable floorplans to plug-and-play power and cooling systems\u2014allowing them to scale and reconfigure as their needs evolve,\u201d said DeLuca.<\/p>\n\n\n

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Buildings that offer lab areas, high-power redundant fiber, secure rooms and high-quality, commute-worthy experiences will become valuable from a landlord\u2019s perspective, Srinivasan advised.<\/p>\n\n\n\n

What\u2019s equally important to a shift in hard assets and operational capabilities is a change in mindset. According to Poleg, the office sector\u2019s most important shift will be changing from a static investment to a more dynamic business like a restaurant or hotel.<\/p>\n\n\n\n

\u201cIt\u2019s not just a matter of squeezing margins but it also changes the whole nature of what the asset is,\u201d Poleg said. \u201cBecoming an operating business isn\u2019t a bad business, but it needs to be managed and funded differently, with different responsibilities.\u201d<\/p>\n\n\n\n

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Read the November 2025 issue of CPE.<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Stakeholders need to get ahead of generational changes to where, when and how people work. <\/p>\n","protected":false},"author":3012,"featured_media":1004776511,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[52688,1521,21747,51037],"tags":[],"class_list":["post-1004776093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","category-digital","category-office","category-trends"],"acf":[],"yoast_head":"\nHow Much Office Space Does a Chatbot Need? - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Much Office Space Does a Chatbot Need?\" \/>\n<meta property=\"og:description\" content=\"Stakeholders need to get ahead of generational changes to where, when and how people work.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-10-30T03:26:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-26T19:26:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/Robot_Feature_iStock-1716013928.png\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"620\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Gabriel Frank\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/\",\"name\":\"How Much Office Space Does a Chatbot Need? - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/Robot_Feature_iStock-1716013928.png\",\"datePublished\":\"2025-10-30T03:26:41+00:00\",\"dateModified\":\"2026-02-26T19:26:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/cf1bfd2d6753f6ea305911ffd020862c\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/how-much-office-space-does-a-chatbot-need\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/Robot_Feature_iStock-1716013928.png\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/10\/Robot_Feature_iStock-1716013928.png\",\"width\":800,\"height\":620,\"caption\":\"Robots in the office. 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