AI Startups Drive Office Demand in Tech Hubs, Offering Hope Amid Commercial Real Estate Crisis

Commercial real estate is having an existential crisis, but AI companies are driving office demand in tech hubs like SF, NYC, and LA.

AI startups need office space for collaboration and innovation, especially in emerging areas like AI.

AI company office leasing grew to 16.5% of the total market in Q3, though still below 2019 peak of 22%.

AI sector small but could create a "wave of growth" post-pandemic similar to mobile internet boom.

$1.5 trillion in commercial debt comes due by 2025, so "tale of two cities" expected in CRE in 2023.