A new report from Savills Research, in partnership with CompStak, examines how AI occupiers’ real estate strategies are maturing from opportunistic take-up of discounted sublease space to direct, longer-term commitments in higher-quality buildings.

As the sector scales, AI companies are taking more space and committing for longer, while availability tightens in key submarkets and lease economics move closer to the broader market. Hiring and funding trends also point to more office demand ahead.

Key findings include:

• In the first half of 2026, AI companies leased 2.9 million square feet (msf) in San Francisco and 1.7 msf in Manhattan.
• While San Francisco remains the global leader in AI tenant footprint, Manhattan is rapidly gaining ground, recording more AI leasing volume in six months than in 2024 and 2025 combined.
• AI companies accounted for 31.3% of new leasing in San Francisco and 8.2% in Manhattan in H1 2026.
• Average AI lease term length increased from 46.3 to 58.6 months in San Francisco and 49.0 to 90.9 months in Manhattan.

AI tenants are signing direct, not just subletting

One of the clearest signs of the sector’s maturation is the shift away from sublease space. The share of AI leasing completed through subleases fell from 44.9% to 23.0% in San Francisco and from 42.3% to 17.5% in Manhattan, comparing 2020–2024 with 2025–H1 2026.

The shift reflects both the maturation of AI occupiers and a changing supply environment. As scaling companies seek space that can support longer-term growth, the discounted, pre-built sublease inventory that characterized many early AI deals has also become less available.