California + Bay Area + Office | July 28, 2023

AI Tenants Lease 133K SF in San Francisco

AI’s hot streak in the Bay Area tech sector is continuing with four San Francisco office leases signed in the past two months, reported the San Francisco Chronicle. Totaling 133,000 square feet, the leases represent a lift for a struggling San Francisco office market with a record-high vacancy rate exceeding 31%.

In the biggest deal, Hive AI leased 57,117 square feet at Kilroy Realty’s 100 First St. (pictured), next to Salesforce Tower. Outside downtown, Hayden AI leased 41,196 square feet at 460 Bryant St., near South Park in South of Market; Anthropic leased 17,735 square feet at 394 Pacific Ave. in Jackson Square; and Tome AI leased 16,887 square feet at 600 Townsend St. in the Showplace Square district.

“Artificial Intelligence firms have a growing footprint from San Francisco to Silicon Valley and the East Bay,” said Chris Pham, senior research analyst at JLL. “If AI companies in the U.S. maintain their compound annual growth rate since 2010, they will occupy roughly 10 million square feet nationwide by the end of 2023.”

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JLL's Pham

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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