The city is home to 11 of the top-funded companies in the AI sector, and the demand for smaller spaces in the city indicates recently-funded companies with fresh capital. Experts predict that AI will continue to be the most active segment of technology for the remainder of the year, driving demand for commercial real estate in San Francisco.
Key takeaways:
- San Francisco's commercial real estate market, which has been struggling in recent years, is seeing a turnaround thanks to the recent boom in artificial intelligence (AI).
- According to data from VTS, San Francisco experienced a 10.2% demand increase in the most recent quarter, largely attributed to the AI boom.
- San Francisco-based AI companies have received an estimated $11 billion in funding this year, accounting for nearly half of all funding for AI startups worldwide.
- Experts predict that AI will continue to be the most active segment of technology for the remainder of the year, driving further demand in the city's commercial real estate market.