AI startups continue fueling San Francisco’s office recovery

San Francisco’s northern waterfront is experiencing a vibrant transformation as AI-powered startups take over prime real estate in Waterfront Plaza. Early-stage companies, including four backed by Y Combinator, have secured significant space there. Real estate experts report that AI-focused businesses now occupy 5 million square feet in the city, marking a notable increase from 1.6 million last year, with OpenAI playing a key role. CBRE predicts these scrappy startups could expand to 21 million sq ft within five years, potentially halving vacancy rates and creating tens of thousands of jobs, thus revitalizing the downtown area’s vibrancy.