Early-stage AI startups are revitalizing San Francisco’s Northern Waterfront, an area previously characterized by empty office spaces and widespread “for lease” signage following the pandemic. Five newly established AI companies—four of them supported by the accelerator Y Combinator—have recently secured leases totaling nearly 24,000 square feet at the Waterfront Plaza complex. Their moves reflect a broader trend of AI-focused businesses expanding across the city and actively contributing to San Francisco’s office market recovery.
According to real estate services firm CBRE, artificial intelligence companies constitute one of the few sectors demonstrating significant growth in the area, leasing approximately 1.6 million square feet citywide last year alone and now occupying roughly 5 million square feet across San Francisco. A substantial portion of this space is attributable to larger companies, notably OpenAI, whose presence has considerably influenced regional demand.
Looking ahead, CBRE anticipates these nascent AI ventures could collectively occupy up to 21 million square feet over the next five years. If achieved, such growth has the potential to dramatically cut the city’s current office vacancy rate—currently at 35.8%—by about half while generating tens of thousands of new jobs. CBRE analyst Colin Yasukochi remarked that this influx could fundamentally enhance the vibrancy and economic resurgence of San Francisco’s downtown district.
Waterfront Plaza itself comprises five buildings with a combined square footage of approximately 442,000. Its past tenants include the coworking giant WeWork, symbolizing shifting commercial trends within the city’s real estate landscape.
