BXPBXP, Inc.

“There are 20 requirements that are over 100,000 square feet. That's about 3.3 million square feet. This is in San Francisco specifically. And a year ago, that number was about 12 requirements. So it's definitely increased and it's great. And as Doug said, these are with companies that we haven't heard of before. So it's new emerging, growing companies.”

“In Midtown South, the first quarter of 2026, captured as much AI demand in leasing as the first half of 2025 did. So the demand from AI users in Midtown South is actually accelerating in New York year-over-year”

“Since the beginning of 2024, AI and tech leasing has steadily increased from 50% of the total leasing demand in the market to 57% to almost 80% in the first quarter of this year.”

“much of the discourse and pontificating about the impacts of this very rapid utilization of artificial intelligence kinds of tools is not equivalent to what is actually going on in our markets. In our markets, we are seeing additional absorption of office space, growth from our clients in premier buildings and in the particularly in markets like San Francisco and Midtown South, we're seeing significant growth of new organizations, many of whom names and ideas didn't exist 5 years ago that are likely to be the next vehicles of growth from technology”

“there is a clear acceleration of technology defined as these new AI-oriented companies that are absorbing the majority of the incremental space absorption in the market. . The -- what has changed, and it's changed dramatically is if you went back to 2010 to 2019, virtually all of the absorption was coming from the tech titans, Google, LinkedIn, Microsoft, Meta, the larger companies. And that has clearly shut down. None of those companies are expanding in any material way in the city of San Francisco and in fact, some of them have given back space.”

“today, there is dramatic incremental office demand growth from new organizations that are developing AI. This new technology demand is focused in San Francisco and more recently in New York City. OpenAI and anthropic are clearly the most recognizable expansions, but there are many meaningful space occupiers expanding across our markets. data bricks, perplexity, Decagon, [indiscernible], [ CRAI ], Snowflake to name a few, with Decongon and Snowflake being new tenants in the BXP roster.”

“AI has been and continues to be enormously beneficial to BXP's leasing activity despite the market anxiety regarding the impact of AI on job creation and resultant leasing demand. We are experiencing direct benefits by leasing space to AI companies in San Francisco, New York and Seattle as well as indirect benefits from both leasing space to companies displaced by growing AI firms and to our core financial, legal and business services clients serving the rapidly growing AI industry.”

“It's not happening in anything in San Francisco. So the office using AI companies that we're dealing with are not necessarily looking for more power. But we are seeing that in some of our R&D portfolio properties down in in Mountain View in particular. And those might be different type of robotic companies or different technology companies, but power is definitely something that they will seek out.”

“Last week, we came to an agreement with an existing AI client to expand to an additional floor, which will bring the building to 95% leased.”

“We can debate whether technology companies today are overstaffed, whether remote work strategies have had a demonstrable impact on premier property demand, whether a massive capital investment from data center infrastructure has led to a different perspective. on human capital from the large tech companies and whether new AI models and AI agents will lead to changes in the makeup of the workforce. There are no answers just conjectures.”

“The near and medium-term negative impacts of AI on jobs are more likely in support functions, which are less present in premier workplaces and in [ away ] markets.”