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Avison Young: AI Gives Bay Area “Shot in the Arm”
Avison Young commercial real estate experts recently participated in a Broker Sentiment Survey for the Bay Area. Among the predictions for 2024 were the AI sector driving the market, fewer layoffs and an increase in return-to-office.
The team holds the belief that AI will emerge as the predominant growth industry following this downturn, maintaining momentum for the foreseeable future. Additionally, other industries exerting a positive influence on the market include industrial manufacturing, clean tech, sustainable energy and biotech.
“AI companies accounted for 31% of total deals completed in San Francisco in 2023, which has given the city a much-needed shot in the arm,” said John Cashin, a principal in Avison Young’s San Francisco office. “We are expecting more of the same in 2024 with in excess of 350,000 square feet of demand from AI companies. San Francisco will always have a leg up on other parts of the country because of the talent pool along with access to venture capital.”
- ◦Lease
