Snapshots
Artificial intelligence companies continue to attract capital, fueling leasing requirements
September 09, 2023
Contributors:
- Christopher Pham
- Jacob Rowden
- Despite the broader slowdown in venture capital funding as interest rates have increased over the past two years, artificial intelligence companies continue to attract a robust volume of VC investment, which has led to more than 13 million s.f. in leasing activity from AI companies since 2019.
- Historically, venture capital funding serves as a catalyst for leasing activity in the succeeding quarters—with 2023 on pace to reach the third highest annual total of funding on record, this should continue to drive an expanding office footprint among AI companies in the United States.
- AI companies continue to actively lease space in 2023 despite defensiveness among the broader technology sector: Anthropic signed a 230,000-s.f. sublease in Q3, the third-largest lease ever executed by an AI company.
- Momentum for AI companies is already translating into new office demand, with roughly 15 AI companies actively expanding in the Bay Area, comprising 1 million s.f. combined.
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