SF's AI boom can't stop real estate slide, as office vacancies reach new record

Despite the rise of artificial intelligence firms in San Francisco, office vacancies continue to climb, reaching a record 34.5% in Q2. Rent prices have dropped to their lowest since 2015 amidst a tech industry slowdown and a trend towards hybrid work.

• Office vacancy rate hit 34.5% in Q2.
• Average rent dropped to $68.27/sqft.
• AI startups like OpenAI are expanding.
• Over 530,000 tech layoffs since 2022.
• Shift to hybrid work affects demand.