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American Focus > Blog > Tech and Science > AI startups continue fueling San Francisco’s office recovery
Tech and Science

AI startups continue fueling San Francisco’s office recovery

Last updated: June 6, 2025 1:36 pm
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AI startups continue fueling San Francisco’s office recovery
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AI Startups Revitalizing San Francisco’s Northern Waterfront

After years of “for lease” signs dominating the post-pandemic landscape, early-stage AI startups are breathing new life into San Francisco’s Northern Waterfront. According to the San Francisco Business Times, five AI-focused companies, with four backed by Y Combinator, have recently leased 23,900 square feet at the Waterfront Plaza complex. This trend is part of a larger citywide movement, with AI firms being one of the few sectors experiencing growth in San Francisco. Last year alone, these companies leased 1.6 million square feet, now totaling 5 million square feet. Notably, OpenAI contributes significantly to this figure, as highlighted in a recent report.

CBRE, a real estate services firm, projects that these innovative startups could occupy up to 21 million square feet within the next five years. This expansion has the potential to significantly reduce the city’s current 35.8% vacancy rate and generate tens of thousands of new jobs. Colin Yasukochi, an analyst at CBRE, believes that this growth could fundamentally transform the vibrancy of downtown San Francisco.

Waterfront Plaza is a five-building campus spanning 442,000 square feet. Past tenants of this complex include popular coworking space, WeWork.

See also  Bets on US Weakness Are Fueling a Rally Across Emerging Markets
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