From AI to Absorption: Office Demand, AI Talent Concentrations, and What it Means for Data Centers

San Francisco Bay Area and New York City down significantly Leasing Activity Still Down from Pre-Pandemic Level

Overall Leasing Activity - AI Cities

• Pandemic shutdowns lead to much lower leasing activity in most, if not all, CBD office markets in the United States. • Low leasing activity gives tenants: – Negotiating power – Options – Flexibility – Reduced pressure – Room for growth – Potential for incentives and concessions

18

16

14

12

10

8

Millions (SF)

6

5.6 MSF 5.6 MSF

4

2.2 MSF 3.0 MSF 0.7 MSF 0.6 MSF

2

0

New York City

DC Metro

Los Angeles

SF Bay Area

Greater Seattle

Austin

Source: Cushman & Wakefield Research, 2023

11