Billionaire Barry Sternlicht and entrepreneur Brendan Wallace discuss the shift from traditional commercial real estate investing to tech-driven strategies in an interview with CNBC Property Play. Sternlicht predicts lower interest rates next year, while Wallace highlights the impact of rate increases on prop tech companies and decarbonization efforts in real estate.

Sternlicht reveals that $20 billion is invested in data centers, with a focus on hyperscaler leases from companies like Amazon and Oracle. He expresses concern over the rapid advancements in AI technology and its potential to replace human jobs. Wallace discusses the complex relationships between tech companies and data infrastructure providers, questioning the sustainability of the current economic model.

Sternlicht and Wallace share their next investment strategies, with Sternlicht heavily investing in Europe due to favorable economic conditions. Wallace believes in the long-term value of New York City despite political shifts, emphasizing the city’s resilience and potential for growth. Future editions of CNBC Property Play cover new opportunities in the real estate market, delivered weekly.

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1. Apple announces new iPhone 13 models with improved cameras, faster processors, and longer battery life.
2. The U.S. economy adds 943,000 jobs in July, exceeding expectations and lowering the unemployment rate to 5.4%.
3. Tesla reports record profits in the second quarter, driven by strong sales of its electric vehicles.
4. Amazon faces criticism for its working conditions after reports of high injury rates in its warehouses.
5. Facebook unveils new virtual reality headset, the Oculus Quest 2, with improved performance and lower price.: Barry Sternlicht says he will drop employees in favor of AI