OpenAI just leased 315,000 square feet at the former Old Navy headquarters in Mission Bay, adding to its existing 500,000-square-foot sublease at Uber's campus. AI tenants now account for 4.7 million square feet, roughly 15% of San Francisco's office deals, and the city's 37% vacancy rate may finally be stabilizing.
OpenAI has just signed another massive sublease in San Francisco, this time taking over 315,000 square feet of office space at Old Navy's former headquarters in Mission Bay. This is on top of the 500,000 square feet of office space they subleased at Uber's headquarters, also in Mission Bay, and it brings their total leasehold stake in the city to about 1 million square feet. AI continues to lead the charge on leasing activity in San Francisco, representing about 4.7 million square feet of office space, about 15% of total deal volume in the city. We still have about 37% vacancy rates in the city, but office vacancies are stabilizing, so we may start to see a reversal in that trend as soon as next year. Follow me for more Bay Area real estate.
