AI boom reshapes San Francisco’s office market recovery

Full-year leasing activity in the San Francisco office market reached 11.0 million square feet (msf) in 2025, surpassing the 10.0 msf annual leasing threshold for the first time since 2017. This represents a 66.7% increase from the 6.6 msf reported in 2024. A strong combination of world-class talent and abundant venture capital has reaffirmed San Francisco into a renewed center of innovation and growth, aligning with early signs of progress from ongoing urban revitalization efforts. As the global epicenter of AI innovation, the city is experiencing record-high leasing activity heavily driven by AI firms and leading technology companies. Nevertheless, overall office availability remains close to historic highs, indicating that a fully balanced office market is still some distance away.

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