Five years ago, many investors were giving up on San Francisco. Today, we may be witnessing one of the largest wealth-creation cycles in Silicon Valley’s history.
Our company has been based in Marin County since 2005, when we acquired our first company. But our roots have always been in San Francisco.
In the fall of 2021, I was considering relocating our LRE office to Jackson Square. At the time, I remember seeing commercial properties around $600 per square foot. One building in the neighborhood actually sold for approximately $515 per square foot that year.
Fast-forward five years, and some of Jackson Square’s most desirable properties have traded above $2,000 per square foot.
Now consider what’s happening with AI.
Anthropic, valued at $965 billion earlier this year, has filed for its IPO. Meanwhile, AI companies have leased more than 4.4 million square feet of office space in San Francisco during the first nine months of 2026—more than double all of 2025.
But as someone who has spent decades developing commercial real estate and operating restaurants, I believe the bigger story is what happens next.
What happens when billions in newly created wealth begin flowing into local businesses, restaurants, retail, housing and new ventures?
This could reshape commercial real estate across San Francisco and Silicon Valley for the next decade.
Not every building will benefit, and not every AI company will succeed. But understanding where people work, live and spend money will be more important than ever.
Five years ago, the question was whether San Francisco could recover. Today, we should be asking how this extraordinary wealth creation will transform the region.
I share more of my perspective on what this means for office, retail and commercial real estate development in my latest blog.
Read the full article: https://akkipatel.com/blog/