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AI demand drives new wave of leasing activity
San Francisco began the year with its strongest leasing quarter since 2014, reaching 3.8 million square feet (msf) in Q1 2026, driven largely by the accelerated growth of AI and advanced technology firms which have emerged as a primary source of demand. Companies such as OpenAI, Databricks, and Anthropic have accounted for a significant share of leasing activity, reinforcing the sector’s role as a key demand driver. OpenAI alone occupies more than 1.0 msf in San Francisco, while Anthropic has taken over two additional buildings in the Financial District South submarket, with its footprint approaching 1.0 msf. Databricks has also expanded within 1 Sansome, bringing its presence to approximately 240,000 square feet (sf). As AI companies continue to expand and attract both investment and talent, demand for office space is expected to remain strong.