"San Francisco used to have the lowest office vacancy in the US of any major market," Alexander Quinn, director of research at real estate company Jones Lang LaSalle, told Insider."which would put it at the highest of any major market in the US," he added.
"San Francisco was a white-hot market driven mostly by technology. To go from that to quite literally the worst market in the country over the course of two years is kind of unprecedented," he said. "There's certainly enough capital to cause a nice leap in demand," he said, pointing to the estimatedpoured into San Francisco-based AI companies this year. The figure accounts for nearly half of all funding for AI startups worldwide, according to data from PitchBook.
It's perhaps unsurprising that AI companies seem to have San Francisco in their sights. The city is home to, according to data from VC firm NFX, which was shared with Insider by San Francisco's Office of Economic and Workforce Development. These companies include OpenAI, Anthropic, and Adept AI.
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