Avison Young, a leading commercial real estate firm, recently participated in a Broker Sentiment Survey for the Bay Area. The survey revealed that AI companies will drive the market and there will be fewer layoffs with an increase in return-to-office by 2024.
The team of experts at Avison Young predicts that AI will emerge as the dominant growth industry after this downturn and continue to maintain momentum for years to come. Other industries such as industrial manufacturing, clean tech, sustainable energy and biotech are also expected to have a positive influence on the market.
According to John Cashin, Principal at Avison Young’s San Francisco office: “In 2023, AI companies accounted for 31% of total deals completed in San Francisco which has provided much-needed support. We anticipate continued demand from these companies with over 350,000 square feet expected in 2024.” He added that San Francisco’s access to venture capital and talented workforce gives it an advantage over other parts of the country.
This update was originally published on Connect CRE website.
