Photo Credit: Vinoth Thiruppathy / Aerial View of New York City
(NEW YORK, NY.) – The AI boom has facilitated a rise in the commercial real estate market in New York, as companies expand to support the new technology.
For example, a 1.4 million-square-foot redevelopment at One Madison Avenue overlooking Madison Square Park has now been fully leased; AI company Harvey and IBM are two major tenants.
“This momentum makes clear that New York City will be a net beneficiary of growth in tech and AI,” said SL Green Realty CEO Marc Holliday, “continuing to attract leading companies that employ top-level talent that is not easily replaced with computers.”
Photo Credit: StartupStockPhotos
Unsurprisingly, San Francisco has seen similar results with AI driving a comeback to in-office work. AI companies now account for 58% of office leases in the San Francisco Bay Area, occupying nearly 10 million square feet of space.
Many question why there is such a boom when the whole point of AI is eventual automation. CBRE notes that researchers, engineers, and other key players need to collaborate constantly, which isn’t always conducive to remote work conditions. AI development creates a need for in-house or hybrid workers (half remote, half in-house).
To add to or correct any information in this report, please contact me at kristin.h@lead4earth.org.
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