SMRTR AIJul 9, 2026Daily.dev

AI is now nearly half of US tech office demand

SMRTR summary

AI companies now make up nearly half of all office space being sought by US tech firms, with demand up 85% year over year, according to VTS data. Fueled by a record $226 billion in AI funding in early 2026, firms are leasing spaces averaging 37,000 square feet — 37% larger than typical tech deals. Demand is heavily concentrated in San Francisco, Silicon Valley, and New York, with one San Francisco corridor alone holding 25% of national AI office demand.

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