AI Report - From opportunistic to institutional

Artificial intelligence (AI) has moved from emerging disruptor to a major force in the office market. In the first half of 2026, AI companies leased 2.9 million square feet (msf) in San Francisco and 1.7 msf in Manhattan. San Francisco further cemented its position as the global leader in AI tenant footprint, while Manhattan recorded more AI leasing in six months than in the preceding two years combined. That scale has changed how they lease office space. What began as opportunistic take-up of discounted sublease space has become direct, long-term commitment to Class A buildings. This report tracks the shift across leasing volume, submarket concentration, the sublease-to-direct mix, building quality and lease economics—and the indicators pointing to more demand ahead...   ...more

RSK: AI putting some pressure on office space. Good graphics.

Ken Notes: PDF...