OpenAI Secures 450K SF in Mountain View, Extending Bay Area Footprint

An AI giant is adding a sprawling Mountain View campus as its Bay Area footprint continues to surge past 1M SF.

Jordan B. & Nina Dale
March 31, 2026

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Good morning. OpenAI is stretching its Bay Area footprint in a big way, locking in a 450,000 SF campus in Mountain View as it continues to scale beyond San Francisco. The deal not only revives a previously distressed asset but also underscores how AI demand is helping fuel Silicon Valley’s office recovery.

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Tech Footprint

OpenAI Secures 450K SF in Mountain View, Extending Bay Area Footprint

Construction around an office building leased by OpenAI at 380 Ellis St. in Mountain View on March 3. Photo by Seeger Gray.

The AI heavyweight is doubling down on the Bay Area with a sizable new campus in Mountain View.

By the numbers: OpenAI leased a five-building, 450,000 SF campus at 350–380 Ellis Street in Mountain View. The former NortonLifeLock site now features a café, rooftop decks and a 2-acre outdoor amenity area with courts and workspace.

Deal backstory: The campus has had a rocky ownership history. Goldman Sachs and TMG Partners bought it during the pandemic but returned it to lender KKR in 2024 via deed-in-lieu of foreclosure. TMG still manages and leases the property, leading renovations to reposition the asset.

SF still the anchor: As it expands into Silicon Valley, OpenAI is still growing in San Francisco. Its latest 280,000 SF sublease at 1800 Owens Street pushed its Mission Bay footprint past 1M SF, adding to earlier deals with Gap and Uber.

A broader trend: AI firms now occupy at least 6M SF across Silicon Valley. Recent deals, including Databricks’ 180,400 SF Sunnyvale expansion, show how AI demand is helping revive the office market.

Market context: Silicon Valley office fundamentals are showing signs of recovery, with vacancy dropping to 16.1% at year-end and 508,000 SF of positive net absorption in Q4, largely fueled by AI and tech tenants.

➥ THE TAKEAWAY

Next leasing wave: AI isn’t just filling offices, it’s reshaping demand. OpenAI’s split between San Francisco and Silicon Valley points to a new leasing playbook: urban hubs paired with suburban campuses, boosting both markets.

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✍️ Editor’s Picks

Raise faster: Henry turns your OM or rough materials into polished, investor-ready presentations in minutes, combining AI speed with real analyst refinement. (sponsored)
Lifestyle lift : Live-work-play developments are accelerating nationwide as demand rises for mixed-use, amenity-rich environments.
Myth busting: Demographic trends are proving less predictive of commercial real estate performance than expected, with local economic fundamentals and supply dynamics playing a larger role.
Stop overhiring: The smartest firms scale talent, not payroll. OnDeck helps you stay lean while still accessing experienced CRE professionals when needed. (sponsored)
Luxury sells: High-end property transactions are driving the early stages of a broader U.S. price recovery, signaling renewed confidence at the top of the market.
Policy shock: Proposed restrictions on investor homebuying are raising concerns about unintended consequences for affordable housing supply and overall market stability.

🏘️ MULTIFAMILY

Executive shuffle: Camden is reshuffling its C-suite as it navigates a challenging multifamily market.
Hidden renters: A growing cohort of “locked-in” renters is distorting housing market signals by staying put and limiting available supply.
Rent freeze: New York City faces renewed debate over a potential rent freeze for stabilized units as affordability pressures intensify.
March madness: Student housing demand remains strong, with rent growth and occupancy outperforming amid competitive “March Madness” leasing dynamics.
Creator capital: YouTuber Ian Stapleton has built a Houston Class B multifamily portfolio, highlighting new pathways into real estate investing.

🏭 Industrial

Cap plateau: Industrial cap rates may be nearing a ceiling as pricing stabilizes amid shifting investor expectations.
Supply surge: Industrial availability in NYC’s outer boroughs is rising as new supply begins to outpace demand.
Fund raise: NorthPoint Development secured $1.5B for a new industrial fund to capitalize on logistics demand.
Data boom : Digital Realty closed a $3.25B hyperscale fund, underscoring strong demand for data center investment.

🏬 RETAIL

Retail expansion: Kroger is planning a $112M investment to open two new Ohio stores, signaling continued brick-and-mortar expansion.
Night shift: Philadelphia is exploring a “night mayor” and zoning changes to support nightlife and late-hour businesses.
TX expansion: MetroNational acquired M-K-T Heights, marking its first major retail move beyond West Houston

🏢 OFFICE

Discount tower: Capital Group is acquiring a distressed downtown LA office tower at a steep discount, highlighting ongoing value opportunities in challenged office assets.
Creative migration: Goodwin is relocating its LA office to the Arts District, underscoring a broader shift toward amenity-rich, creative submarkets.
Remote drag: Uncertain remote work policies are clouding the future of two large Tennessee office assets.

🏨 HOSPITALITY

Event premium: The World Cup is driving a surge in high-priced Airbnb rentals across key U.S. host cities.
Resort sale: Ashford Hospitality Trust sold a historic Santa Fe resort as part of its portfolio repositioning.
Booking backlash: Hotel cancellations tied to World Cup dynamics are disrupting Philadelphia’s anticipated tourism boost.

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📈 CHART OF THE DAY

Rising rents from 2019 to 2023 left middle- and higher-income renters’ purchasing power essentially flat, while lower-income renters were hit hardest, losing over 25% of their real income after housing costs.