OpenAI Nears Deal for 100,000 SQFT Cisco Sublease in San Francisco’s Mission Bay
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.
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On the RET wire
- The 117th San Francisco story tracked on the wire in September 2026. All San Francisco coverage →
Computed from Real Estate Trail’s own tracked coverage
OpenAI is closing in on a sublease for roughly 100,000 square feet at 500 Terry A. Francois Blvd. in San Francisco’s Mission Bay, positioning the artificial intelligence company to absorb space Cisco just quietly put…
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