OpenAI's Expansion Fuels San Francisco’s Office Market Recovery

[Sanjeev Advani]

OpenAI, the company behind ChatGPT, has secured a full-building lease at 550 Terry A Francois Blvd in San Francisco, marking the city's largest office deal of 2024. The 315,000-square-foot space in Mission Bay adds to OpenAI’s nearly 1 million square feet of leased space across the city, including properties subleased from Uber last year.

As one of the largest AI firms in the world, OpenAI’s expansion is helping revitalize San Francisco’s struggling office market. AI companies now occupy 4.7 million square feet of office space in the city, representing 15% of all leases signed this year. With a workforce that has more than doubled and a $6.5 billion funding round in the works, OpenAI is set to continue its rapid growth both in San Francisco and globally.

This move underscores the AI sector’s role in driving office space demand and economic recovery in the city.