AI Firms Have Leased 10MM SQFT in Silicon Valley and the Peninsula Since 2020 as South Bay AI Demand Jumps 67%
Why this matters
Commercial real estate continues to digest a multi-year reset in cost of capital. Transaction velocity is below the 2019-2021 trend but improving, cap rates have stabilized across most stabilized property types, and the bid-ask gap has narrowed materially in the past two quarters. Sponsors with permanent capital and operating platforms have an advantage in the current execution environment. San Francisco continues to clear office at the deepest discounts to 2019 basis seen in the cycle, while multifamily fundamentals have stabilized and life sciences in the Peninsula remains active. The next twelve months will continue to reward underwriting discipline and operational sophistication over balance-sheet aggression.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 190th San Francisco story tracked on the wire in October 2026. All San Francisco coverage →
Computed from Real Estate Trail’s own tracked coverage
Artificial intelligence companies have leased about 10.0 million square feet across Silicon Valley and the San Francisco Peninsula since 2020, and the pipeline is still growing, with AI tenant demand in Silicon Valley…
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