The real estate markets in New York, San Francisco, and the Southeast are leading the current recovery.

In the first quarter of 2024, AI companies leased more office space in Manhattan than they did in all of 2023.

Liz Hart believes the bottom for commercial real estate valuations is in the past.

Newly established AI companies are leasing large office spaces, with some taking over 100,000 square feet and others exceeding 300,000 or 400,000 square feet.

In addition to New York and San Francisco, AI companies are beginning to establish a presence in markets such as Bellevue, Boston, London, Singapore, and Los Angeles.

San Francisco is currently experiencing record-high demand for commercial real estate, driven primarily by AI companies.