(Bloomberg) -- Commercial real estate stocks nosedived Thursday as traders worried about risk to demand for office space from higher use of artificial intelligence tools, broadening a selloff that began Wednesday in small corner of the market.

Shares of CBRE Group Inc., a major commercial real estate services company, plunged as much as 15%, bringing the two-day decline to 26% in the worst such move since the financial crisis of 2008. Jones Lang LaSalle Inc. fell as much as 14% Thursday, Cushman & Wakefield Ltd. dropped 13% and Newmark Group Inc. sank 11%.

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An index tracking stocks of office real estate companies retreated as much as 6.7%. Major decliners in the index include SL Green Realty Corp., Cousins Properties Inc., Kilroy Realty Corp. and BXP Inc.

“Concerns about increased use of AI applications translating into reduced demand for office space have been around for some time, this is not new,” said Jeffrey Langbaum, an analyst covering office REITs for Bloomberg Intelligence.

“However, after yesterday’s selloff in the brokers, we are seeing the fear spill back over to the actual office space providers.”

The two-day selloff across real estate stocks is among the latest in what analysts are calling the “AI scare trade.”

“We’re in a bit of a ‘ready fire aim’ environment in financial services in general, with investors reacting sharply to even modest earnings misses given widespread fears of AI disruption,” Morningstar’s Sean Dunlop said.

Investors’ concerns about AI disrupting business models have intensified following the rollout of new tools by startup Anthropic. It has led to steep selloffs in several corners of the stock market over the past couple weeks — starting with software makers, then moving to private credit companies, insurers, wealth managers, real estate services and logistics firms.

On the other hand, analysts and investors have warned that some of the recent steep selling reflects a knee-jerk reaction from traders and could be overestimating the risks.

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