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

Class A CBD vacancy highest in San Francisco Bay Area High Vacancy Presents Opportunity for AI Tenants

Class A CBD Vacancy Rates - AI Cities

• Pandemic shutdowns lead to higher vacancy rates in most, if not all, Class A CBD office markets in the United States. • High vacancy rates give tenants: – Negotiating power – Options – Flexibility – Reduced competition

35%

30%

29.6%

25%

21.7% 22.8% 23.6% 24.2%

20%

17.6%

15%

10%

5%

– Room for growth – Potentially lower operating costs

0%

New York City

DC Metro

Southern California

SF Bay Area

Greater Seattle

Austin

Source: Cushman & Wakefield Research, 2023

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