Gleaming Islands and Gray Macros: The AI-Driven Split in U.S. Office Markets

Generative AI is reshaping the U.S. office market, driving massive leasing in premier hubs like San Francisco and NYC while traditional landlords face rising vacancies.

By: AXL Media

Published: Apr 27, 2026, 6:59 AM EDT

Source: Bisnow

The AI Leasing Surge

Artificial intelligence firms are becoming the new anchor tenants for the modern office era. In San Francisco, industry leaders like Anthropic and OpenAI have expanded their footprints to over 1 million square feet combined. Similarly, New York City saw AI firms lease 415,000 square feet in the first quarter of 2026 alone nearly half of the total volume for all of 2025.

Interestingly, JLL reports that 55% of this new leasing is earmarked for future growth, with firms taking large blocks of space off the market before they are even ready to occupy them. Experts like Harry Klaff of Avison Young suggest we are still in the "early innings" of this tech-driven leasing cycle.

The Corporate Contraction

Conversely, established tech giants are using AI to streamline operations, leading to significant reductions in physical footprints:

Amazon: A leaked plan revealed efforts to cut 49,000 desks (roughly 14 million square feet) from its global footprint.