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it home reported on september 21 that according to the san francisco chronicle on the 20th, artificial intelligence giant openai has reached a second major expansion agreement in san francisco, injecting new impetus into san francisco's troubled office market. the newspaper quoted an informed real estate source as saying that openai has signed a lease for a 315,000 square foot (it home note: 29,300 square meters) office at 550 terry francois blvd in mission bay.

image source: pexels

openai, the san francisco-based company best known for developing the chatbot chatgpt, has been expanding rapidly in the city over the past year and is in talks to expand its operations at 550 terry francois, formerly old navy’s six-story headquarters in mission bay, though rumors have suggested openai’s office space could expand to other areas of uber’s four nearby buildings.

the newspaper quoted market insiders as saying that openai is also actively looking for space in other markets - looking for a 200,000 square feet (about 18,600 square meters) office space in new york city and a 50,000 square feet (about 4,645 square meters) office space in seattle.

but the “ai wave” has not offset the significant reduction in office space in the san francisco area during the epidemic. according to data from real estate brokerage firm cbre, in the second quarter of this year, san francisco’s office vacancy rate hit a record high of 36.6%.

openai's expansion shows that technology companies remain interested in the mission bay community, even though many companies have reduced their office size during the pandemic, resulting in a sharp increase in office vacancy rates: for example, dropbox has abandoned or subleased more than 40% of its original 750,000 square feet of headquarters space, and uber, which has never used about half of its headquarters space, is also subletting unused space to openai.