AI is Rewriting Bay Area Office Leasing | Real Estate News

Real Estate News Today | 2 Min News | The Daily News Now! · Jul 11, 2026 · 2m

AI is rewriting the Bay Area’s office leasing map, flipping the traditional north-south trend as San Francisco becomes the launchpad and Silicon Valley the new hotspot. Giants like OpenAI, Apple, and Databricks are snapping up massive leases in Mountain View and Sunnyvale, shrinking vacancy and forcing even companies like Google to pull back subleases. Landlords are holding tight on space, rejecting deep discounts as demand surges for AI-driven R&D. Meanwhile, San Francisco sees a “flight to quality,” with premium rents soaring while older buildings languish — even as new high-end towers…