U.S. tech companies are increasingly concentrating their office leasing activity in a small number of core talent hubs, with a clear pull toward high-quality buildings and larger, longer commitments.
According to Newmark data on the 100 largest tech office leases over the past 12 months, leasing activity is becoming more geographically concentrated, with San Francisco Bay Area and New York City capturing the bulk of major deals. Silicon Valley alone led all markets in total square footage, ahead of both San Francisco and New York, according to CRE Daily.
Leasing Activity Narrows to a Few Core Markets
The top 100 leases totaled about 16.5 million square feet across 14 U.S. markets, down from a broader spread across 21 markets in the prior period. Five markets accounted for most of the activity, with the Bay Area and New York dominating overall volume.
Silicon Valley led with roughly 5.38 million square feet, followed by San Francisco at 2.96 million and New York City at 2.83 million. Boston ranked a distant fourth, while other major tech hubs such as Austin, Seattle, and Los Angeles saw comparatively limited activity.
Deal concentration was also evident at the transaction level. More than half of the top leases occurred in the Bay Area, and New York accounted for another large share. Boston stood out for activity tied to robotics and defense technology, but overall leasing remained heavily weighted toward established tech centers.
AI Firms and Expansions Drive Demand
Much of the leasing growth is being driven by AI and infrastructure-focused companies. These tenants accounted for a significant share of expansions, with many increasing footprints substantially in a short period of time. In one example, AI firm Anthropic expanded its Bay Area presence from tens of thousands of square feet in 2021 to several hundred thousand square feet in recent years.
Across the top leases, expansions made up a larger share than relocations, while renewals remained a substantial portion of activity. Only a smaller fraction involved companies moving entirely to new markets. AI-linked companies were also behind a large share of footprint growth.
Flight to Quality Strengthens in Office Space
The preference for premium office space continues to deepen. Most leasing activity is concentrated in Class A and trophy buildings, which together account for the vast majority of top deals.
Many tenants are not only upgrading building quality but also increasing total square footage at the same time. Long-term lease commitments are also becoming more common, with average lease terms rising compared to pre-2020 levels.
This combination of longer leases and higher-quality space selection is tightening availability in top-tier buildings, particularly in supply-constrained urban cores.
A Market Influenced by Talent and Capital
The consolidation of tech leasing reflects more than real estate strategy. Companies are using office locations to secure access to talent, investment networks, and industry ecosystems, particularly in AI-heavy markets where venture capital is highly concentrated in the Bay Area.
With limited new premium office supply and continued demand from fast-growing tech firms, competition for top-tier space is expected to remain strong. The result is a reinforcing cycle in which established hubs continue to attract the largest commitments, while secondary markets see more modest demand.
