AI Investment Fuels Office Leasing Recovery Across Major Markets

Record venture capital investment in artificial intelligence is fueling a rebound in office leasing by tech companies, pushing tech to the forefront of office demand, according to CBRE’s Tech Gateway Office Markets report.

CBRE’s latest analysis shows that AI companies leased 21 million sq. ft. of office space in San Francisco and Silicon Valley since 2019 – equivalent to 15 Salesforce Towers, the tallest building in San Francisco. AI companies leased another 9.4 million sq. ft. in Manhattan, Boston and Seattle over the same period.

In Q1 2026, large AI leases helped increase tech’s share of total office leasing to 22.7%, outpacing all other industries. This builds on the rebound in full-year 2025, when U.S. tech companies leased 36.7 million sq. ft. of office space, representing 16.8% of all U.S. office leasing activity.

Since 2020, U.S.-based AI companies have attracted $578 billion in venture capital investment, with the San Francisco Bay Area accounting for roughly 80% of that total. Investment in AI over the past five years has surpassed total venture capital funding across all industries from 2015 to 2019 ($462 billion), highlighting the rapid acceleration of AI-driven growth.

“AI investment has moved from research and experimentation to large-scale deployment,” said Colin Yasukochi, executive director, CBRE Tech Insights Center. “That shift is translating into meaningful office space demand in markets with deep tech talent and established innovation ecosystems.”

The resurgence in tech and AI leasing is influencing office market fundamentals in several major U.S. markets, most notably Manhattan and San Francisco. Overall office vacancy in those cities declined over the past two years, and net absorption exceeded 3% of total building inventory in 2025 – a high percentage even in periods of economic expansion.

Leasing growth has largely been concentrated in traditional U.S. tech markets, such as Silicon Valley, Manhattan, San Francisco, Boston and Seattle, which collectively doubled their tech-related leasing volumes between 2023 and 2025. More recently there’s evidence that the momentum is spreading into other markets, including Austin and Chicago, which saw increased tech leasing in 2025.

“With continued robust AI investment and companies adding more talent, we expect more U.S. office markets to benefit from the ongoing expansion of the tech growth cycle,” Yasukochi said.