San Francisco Artificial Intelligence hotspots have seen the biggest market drops in availability over the last two years

The Mission Bay, Potrero Hill, and Mission submarkets have led San Francisco’s recovery, posting the steepest declines in total availability over the past two years at -46.4%, -29.4%, and -22.9%, respectively. This far outpaces the broader market’s modest -3.8% drop.
This momentum has been driven largely by AI companies, which signed the largest leases in each of these submarkets.
As AI firms expand beyond these initial hotspots, the Waterfront/North Beach and Financial District submarkets have also seen a meaningful decrease in total availability at -6.5% and -5.7% over the past year with the landlords aggressively turning towards plug-and-play solutions tailored for AI companies to move in immediately.

September 8, 2025

US-CA-SFO San Francisco