How AI is powering the office comeback

New York City may have sparked the return-to-office movement, but it’s no longer alone. San Francisco, home to the booming AI-powered workplace sector, is quickly becoming the next hub of data-driven reinvestment and smart workplace planning.

In the past year, companies like OpenAI, Anthropic, and Harvey have signed leases totaling nearly one million square feet of office space, according to JLL Vice Chairman Chris Roeder.

Developers are also showing renewed confidence. The proposed 1,225-foot office tower at 50 Main Street is set to become the tallest building on the West Coast, a visible marker of San Francisco’s long-term commitment to its urban innovation ecosystem.

Industry analysts project that AI companies could occupy up to 15 million square feet of physical office space by 2030. This is a reinvention of how and why companies invest in space, powered by AI-driven workplace strategy, occupancy analytics, and hybrid work optimization. Who said in-person work was going away?

• This article was originally published on dojo.co and has been updated for content integrity. OfficeSpace Software recently acquired Dojo AI, the patented platform now powering our next generation of AI space planning tools. Learn all about the acquisition and the future of our AI platform here.

AI in office real estate: San Francisco’s data-driven comeback

San Francisco’s recovery mirrors a familiar story. After the 2008 financial crisis, New York’s office market was reshaped by a wave of tech-driven growth. Developers like Hines saw the potential and broke ground on Salesforce Tower, which recently expanded in an effort to fuel agentic AI innovation and growth.

Today, AI is playing that same catalytic role. Despite high vacancy rates, declining property values, and the challenges of post-pandemic urban life, the city is positioning itself as the capital of artificial intelligence and digital transformation in the workplace. With OpenAI, Anthropic, Databricks, and Scale AI establishing major presences, San Francisco is once again at the center of a transformative wave.

The difference this time is reach. AI now influences every industry, including healthcare and finance, driving hybrid work models and smarter, data-driven decision-making. For many companies, securing office space has become both practical and symbolic: a statement of permanence, confidence, and investment in the future of work.

No matter the industry or sector, we see AI reshaping entire workforces by: 

• Automating tasks
• Redefining roles
• Changing how and where people work 

Some organizations use AI to streamline operations, while others are reinvesting those efficiencies into AI-powered workplaces that emphasize collaboration, creativity, and human connection. The result is a more intentional, future-ready office that blends digital tools with physical experience.

The impact of AI on workplace strategy

The new wave of office leasing isn’t just about filling empty desks. For tech companies and beyond, the AI-powered workplace is emerging as a strategic tool to strengthen culture, collaboration, and competitive advantage.

But it’s also a financial decision. As organizations rethink their footprints, data-driven insights and occupancy analytics are helping leaders optimize space utilization, forecast capacity, and adapt with flexibility to evolving work patterns.

At OfficeSpace, we see three trends defining this new office renaissance:

1. Data-driven agility and workplace optimization

Rapidly growing AI companies need flexibility. Workplace analytics and occupancy intelligence give leaders the ability to plan dynamically, right-size portfolios, and optimize space performance with precision.

AI-powered planning tools help translate data into action, enabling smart workplace planning that aligns physical space with team behavior, project needs, and long-term strategy.

2. Human-centered design for the hybrid work era

Employee expectations have evolved. Offices now need to support both hybrid work, remote work, and human connection. The most effective workplaces combine collaboration zones, wellness features, and tech-enabled setups that adapt in real time.

By leveraging data-driven insights and AI-supported design models, organizations can test layouts before making major investments by validating design choices, improving utilization, and creating environments employees genuinely want to return to.

3. The modern office as a competitive advantage

Leasing a visible space in New York or San Francisco, beyond a strategic commercial real estate move, is a signal of innovation and intent. The modern office has become a brand differentiator and a key component of workplace strategy.

In a competitive talent market, AI-powered workplace experiences, which can include smart sensors and personalized booking systems, help attract employees, support collaboration, and reinforce a company’s identity.

The future of work: AI-driven workplaces

The office comeback isn’t confined to Manhattan. From the East Coast to the Bay Area, organizations are reinvesting in smart, flexible workplaces that combine AI-powered insights, occupancy analytics, and hybrid-ready design.

AI may be disrupting traditional models of work, but it’s also enabling a new era of workplace optimization where space, data, and culture align to drive performance.

The need for physical offices isn’t going away. Companies that see the workplace as a strategic, data-informed ecosystem will be best positioned to thrive in this new age of AI-powered innovation.

OfficeSpace helps empowers teams to plan smarter, design better, and adapt faster as new office demands arise. Learn more about AI space planning with OfficeSpace.