Despite a record office vacancy rate of 34% in the third quarter, AI companies have signed deals for over 1 million square feet of office space this year. This has increased the industry's total footprint to 3.4 million square feet, a significant rise from 2.3 million square feet last year and seven times the size in 2016, according to Jones Lang LaSalle Inc.
Key takeaways:
- San Francisco has been struggling to recover from the pandemic and its decline is predicted by some to be irreversible.
- Despite the city's struggles, artificial intelligence companies are flocking to San Francisco and requiring their employees to work in person.
- The city's office vacancy rate reached a record 34% in the third quarter, according to CBRE Group Inc.
- AI companies have signed deals for more than 1 million square feet of San Francisco office space this year, bringing the industry's total footprint to 3.4 million square feet, up from 2.3 million square feet last year and seven times what it was in 2016, according to Jones Lang LaSalle Inc.