Early stage AI startups are infusing new life into San Francisco’s Northern Waterfront “for leases” that dot the long-standing “for leases” landscapes “for leases.” According to the San Francisco Business Times, five AI-focused companies (four supported by Y-combinators) recently leased 23,900 square feet at the Waterfront Plaza Complex. This is part of a citywide trend. AI companies are one of the few sectors expanding in San Francisco, accounting for 1.6 million square feet leased last year, and now totaling 5 million square feet according to real estate services company CBRE. (Of course, Openai explains a significant portion of its overall numbers.)
There are many more if CBRE predictions are believed. These ugly startups believe they could reach 21 million square feet within five years, halving the city’s current 35.8% vacancy rate and creating tens of thousands of jobs. “It could fundamentally change the vitality of downtown,” CBRE analyst Colinjaskoch tells the outlet.
The Waterfront Plaza is a five-building campus totaling 442,000 square feet, and the tenant mix tends to change with economic trends. Among those past tenants are us.