Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
More stories for you
The growth of artificial intelligence is breathing new life into the U.S. office market, as demand from both emerging and established tech companies spreads far beyond Silicon Valley. Major corporations like Walmart, Amazon, and IBM are joining the wave of AI-driven expansion, helping to reverse years of sluggish office leasing following widespread cutbacks during the pandemic and a downturn in the tech sector.
Leasing activity by tech firms has picked up significantly in cities ranging from New York to Seattle, signaling renewed momentum for the commercial real estate market. The sector’s rebound follows years of consolidation by major players like Meta and Google, who scaled back office footprints to cut costs. The transition to hybrid work had also previously led companies to reduce space, putting pressure on landlords nationwide, according to CoStar.Â
Industry experts report that tech office leasing hit a low point at the end of 2022 amid mass layoffs, but has since made a strong recovery. Companies are actively leasing in hubs known for concentrated tech talent, including San Francisco, New York, Toronto, and Boston.
More stringent return-to-office policies have also contributed to the uptick. Amazon, for example, has been expanding its office presence in cities like New York to support a full five-day in-office work schedule. This effort included its first Manhattan property acquisition since 2020 and one of the city’s biggest leases of the year.
During the first quarter of 2025, technology companies accounted for 7.9 million square feet of office leasing—up 21% year-over-year—and made up 16.4% of all U.S. office leases. Last year, the tech sector claimed an 18% share of total leasing activity, up from 14.2% in 2023.
San Francisco remains a stronghold for tech leasing, with the sector representing half of the city’s total activity so far this year. But the resurgence is just as noteworthy in New York, where tech leasing has reached its highest level since 2000, closing out 2024 with a post-pandemic record.
Still, analysts caution that a return to the explosive leasing rates seen between 2012 and 2019 is unlikely in the short term. While large AI firms such as OpenAI are making major deals, most leases remain modest in size, typically between 10,000 and 50,000 square feet.
Despite this, tech companies made up nearly a third of the 100 largest office leases in the U.S. last year, surpassing finance and insurance for the top spot. In 2025, Amazon continues to grow, adding locations in Miami and Dallas and forming new partnerships with flexible workspace providers like WeWork.
Landlords are seeing renewed interest from tech firms, particularly those involved in AI and adjacent industries. Real estate developers like SteelWave report a stark contrast from last year, with a notable uptick in tenant inquiries in the Bay Area. AI-driven demand has already led to more than 5 million square feet of leasing in San Francisco over the past five years. Projections suggest this could rise to 16 million square feet by 2030—enough to potentially cut the city’s office vacancy rate in half if current occupancy trends hold.
Major 2025 deals highlight the growing footprint of AI firms. OpenAI, for instance, has expanded in Bellevue, Washington, and added offices across multiple global cities. Applied Intuition, a developer of AI-powered vehicle software, signed one of the biggest Silicon Valley leases this year. Meanwhile, IBM has upgraded its Manhattan office space, and Walmart has bolstered its tech presence in the Bay Area with a new lease.
