August 11, 2023
San Francisco’s downtown office market is showing signs of recovery, as AI companies drive demand for office space.
According to JLL, a commercial real estate company, office searches in San Francisco are reaching levels not seen since COVID vaccines became available in 2021. A quarter of these searches are coming from AI companies, which are attracted to San Francisco’s concentration of tech talent and VC funding.
Ten AI enterprises are currently seeking expansive office spaces, ranging from 700,000 to 800,000 square feet, indicative of their burgeoning presence. JLL notes that these companies have already tripled their office footprint in San Francisco since 2016.
Many AI startups believe that their work is best done in person, and they are looking for office space that can accommodate their growing teams. Commercial real estate companies are betting that in-person attendance requirements from South Bay-located companies such as Google and Meta will also trigger San Francisco-based companies to follow suit.
In addition to AI companies, other tech sectors that are driving demand for office space in San Francisco include cybersecurity, fintech, and life sciences. These sectors are all growing rapidly, and they are creating new jobs in the city.
The sources for this piece include an article in Axios.
