- OpenAI leased a 450K SF, 5-building office campus in Mountain View.
- The property was recently redeveloped with new amenities and outdoor spaces.
- OpenAI’s Bay Area office footprint now exceeds 1M SF.
- Silicon Valley office vacancy declined to 16.1% by end of 2025, helped by AI sector demand.
OpenAI Accelerates Bay Area Expansion
OpenAI has significantly increased its presence in Mountain View, signing a lease for a 450K SF, five-building office campus at 350-380 Ellis St, reports Bisnow. The property, owned by KKR Real Estate Finance Trust and TMG Partners, recently underwent upgrades—including a new amenity zone and modern dining spaces—designed to appeal to tech tenants.
Office Demand Rebounds Driven by AI Growth
The Mountain View office lease follows multiple large San Francisco transactions by OpenAI. In the past three years, the firm secured major blocks of space, including 315K SF at 550 Terry A. Francois Blvd. and a 280K SF sublease at 1800 Owens St. These moves have pushed OpenAI’s Bay Area office footprint beyond 1M SF as artificial intelligence companies remain major drivers of leasing activity, mirroring broader momentum in AI infrastructure investment and development partnerships across the industry.
Why It Matters
Silicon Valley’s office market shows early signs of recovery. CBRE reports vacancy fell to 16.1% by the end of 2025. Meanwhile, net office absorption reached 508K SF in the fourth quarter. AI and tech firms drove most of that demand. OpenAI’s real estate expansion reflects its rapid growth. The company’s annualized revenue hit $25B in early 2026.
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