Can the AI boom save NYs ailing commercial properties?

In December, President-elect Donald Trump and SoftBank CEO Masayoshi Son announced $100 billion in US investments to create more than 100,000 new jobs in artificial intelligence and related infrastructure.Then, last week, Hussain Sajwani, the chairman of Dubai-based luxury property developer Damac, stood by Trump at Mar-a-Lago to announce a $20 billion investment in the Midwest and Sunbelt for AI data centers and chip making.Chip makers are also investing $112 billion around New York State with the Albany NanoTech Complex becoming the home of CHIPS for America EUV Accelerator, one of three National Semiconductor Technology Centers.It will unlock $825 million in federal funds for research and development.For brokers and building owners yet to recover from the pandemic, artificial intelligence investment is a godsend.“New York has the second-largest number of AI companies after California,” said Rahul Mewawalla of Mawson Infrastructure Group, which builds and maintains the digital infrastructure for high-energy data centers that support AI, High Performance Computing (HPC), crypto mining and blockchain growth.Over the last decade, AI firms have expanded exponentially in New York from less than 450,000 square feet to over 4.8 million square feet and counting.

And although many AI firms are headquartered in Silicon Valley, they are finding the talent they want to lure in the Big Apple.“New York attracts both graduates and the employee base,” added Jamie Katcher of JLL.“Almost 40% of relocators to New York are coming from the West Coast and the venture money pouring into New York is driving part of this surge.”CBRE reports there are already nearly 190,000 high-tech jobs in Manhattan, with “more help” wanted ads posted each day. “AI needs access to a highly skilled workforce with a distinct set of skills apart from the broader tech industry,” explained Sacha Zarba of CBRE.

“The fact that employees want to come to the office to work in New...