Building AI Innovation Through Smart Real Estate Strategy

The numbers tell the story of this shift. Leasing for technology companies has dropped about 31% from pre-pandemic levels as firms are retooling their spending priorities providing evidence to a strategic realignment. Capital flows are moving decisively away from traditional office space and toward the infrastructure that powers AI.

The most strategic approach I've seen involves budget realignment for talent acquisition. Companies are examining their entire CRE capital and operating expenses—particularly through portfolio optimization and flexible workplace strategies—to enable significant spending on internal technology, tools, and the specialized AI talent needed to compete. This strategy frees up resources for essential AI investments, a top priority for tech leaders who are focused on increasing revenue (66%) and innovating new products (62%), according to JLL’s Future of Work survey. These companies are now building million-square-foot data centers, a highly capital-intensive business that redefines real estate's role in the tech ecosystem.

The changes we see today are just the beginning. Companies will continue to increase spending on AI compute within data centers, lab spaces for hardware innovation, and office environments where top AI talent can collaborate. The most forward-thinking leaders are already planning for a future where the workplace is an active participant in the work itself—an environment that learns employee behaviors, anticipates needs and fosters seamless human-AI collaboration. This requires a "test-and-learn" mindset and a commitment to continuous optimization.

The race for AI dominance will be won by the companies that innovate fastest. Mastering this new real estate playbook—balancing optimization with innovation and leveraging data to make every square foot count—is no longer optional. It is the key to turning your real estate portfolio into a powerful competitive advantage.

The capital shift is already underway. Is your real estate strategy an anchor holding you back or the engine fueling your innovation? Ready to turn your tech space ambition into action? Reach out to set up a meeting.