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

Austin has temporarily heightened demand San Francisco Bay Area Still an AI Hotspot

AI Tenants in the Market

• Silicon Valley

accounts for more than half of AI tenant demand in the Bay Area.

3,000

2,456 KSF

2,500

• Austin’s figure is anomalous, as one tenant constitutes more than half of AI tenant demand in the market. • The 410,000 sf of

2,000

1,801 KSF

1,729 KSF

1,388 KSF

1,500

Thousands SF

979 KSF

1,000

video game tenants in the Los Angeles market are not included, even though they often utilize AI in their games.

500

292 KSF

0

Greater Los Angeles

DC Metro

Greater Seattle

New York City

Austin

SF-Bay Area

Source: Cushman & Wakefield Research, 2023 Note: San Francisco includes pre-OpenAI lease total

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