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BRE predicts that San Francisco's office vacancy rate could drop by half within five years due to the influx of AI companies. These companies are expected to expand into 21 million square feet of office space, a quadrupling from their current 5 million square feet. This expansion is projected to create 50,000 to 60,000 new jobs in the city.

    The artificial intelligence boom has already brought significant investment to San Francisco, with $103 billion in venture capital funding over the past five years. Experts at CBRE believe that AI is a major driver of growth, comparable to the impact of mobile technology during the post-financial crisis recovery.

    As AI companies expand and hire more staff, they are driving demand for office space. For example, Sierra, an AI startup, has doubled its office footprint and quadrupled its headcount in just six months. Downtown San Francisco is preparing for the influx of workers with new developments, such as two mixed-use high-rises proposed at 88 Bluxome Street.

    CBRE's executive director Colin Yasukochi notes that the job creation potential of AI is "the most exciting part" of this trend, which could fundamentally change the vibrancy of downtown San Francisco.