Artificial intelligence companies emerged as the clear catalyst behind the national office market’s recovery this year, reshaping post-pandemic leasing dynamics and signaling a new growth cycle for commercial real estate. While many sectors remain cautious, AI-driven firms are aggressively absorbing office space, helping stabilize vacancy rates and redefine how, where, and why offices are used.
This is not the first time the technology sector has led an office market rebound. In previous downturns, industry giants like Google and IBM helped reignite demand. However, today’s recovery is fundamentally different. The current wave of growth is being driven by companies developing AI-powered products—ranging from large language models to advanced semiconductor chips that fuel data centers—marking a shift in both scale and strategy.
Unlike earlier generations of tech firms, artificial intelligence companies have maintained a steadfast office-first operating model. According to industry leaders, this commitment to physical workspace has never wavered, even during periods of widespread remote work adoption.
“There are a few things that make AI different from legacy tech companies,” said Mark Lammas, president of West Coast-focused landlord Hudson Pacific Properties. “Most notably, these firms launched with an office-first mindset—and that hasn’t changed. Tech is coming back, for sure.”
AI Leasing Activity Accelerates Across Major Office Markets
That office-centric approach has become a powerful driver of leasing momentum. AI companies are rapidly securing space that supports collaboration, innovation, and long-term scalability—often well ahead of immediate headcount needs. As competition intensifies, these tenants are prioritizing properties that can accommodate ambitious expansion plans without limiting future growth.
According to CoStar market analytics, demand from AI tenants is approaching historic highs, particularly in innovation-driven markets. San Francisco stands out as a national leader, with artificial intelligence leasing activity outpacing other major U.S. office hubs. While average lease sizes in the city remain approximately 19% smaller than pre-pandemic levels, market analysts expect that gap to narrow as AI firms continue to scale.
What This Means for Office Market Growth in 2026
As global demand for artificial intelligence accelerates, office space requirements are expected to grow alongside it. Companies building the infrastructure, software, and hardware that power AI systems need centralized workplaces to support research, engineering, and rapid collaboration—factors that remote-only models struggle to replicate.
For landlords and investors, this shift presents a significant opportunity. High-quality office assets capable of supporting advanced technology tenants are becoming increasingly valuable, particularly in markets with strong talent pipelines and established tech ecosystems.
Looking ahead to 2026, artificial intelligence is positioned not just as a growth sector—but as a stabilizing force for the U.S. office market. As AI adoption expands across industries, its real estate footprint is likely to grow with it, helping move the needle on the nation’s historically high office vacancy rate and ushering in the next chapter of office market recovery.
About CORFAC International – New York
CORFAC International – New York, an extension of CORFAC International delivers over 90 years of Expertise for Commercial Real Estate in the Greater NY Metro Area. Comprised of a partnership of WCRE & Chilmark Real Estate Services, CORFAC International – New York provides practical guidance, analyzes crucial transaction details for optimal workspaces and deals, by leveraging market knowledge to drive client success. As committed advocates, we deliver measurable results, serving global clients with expert advisory and property management. We match your dedication with proven expertise.
