Since the powerhouse artificial intelligence companies have made their moves, San Francisco’s next tech darling has decided to commit to a larger office lease too.
Databricks, a decade-old software firm whose value has swelled alongside the rise of AI, has agreed to lease approximately 150,000 square feet at 1 Sansome St., according to two sources within the company who do not have permission to speak publicly.
The company has communicated the move to employees and said it hopes to announce the deal with Mayor Daniel Lurie. A memo sent Friday morning said Databricks will spend a year renovating the spaces at 1 Sansome St. to “support RTO” by 2026.
Real estate sources familiar with the deal confirmed that Databricks will move into offices between floors 20 and 40. Databricks’ current headquarters is at 160 Spear St., where it leases around half as much space.
According to data from CoStar, floors 22 through 27 are contiguous and would make up approximately 105,000 square feet. The other floors in the deal are smaller.
Representatives of Databricks did not respond to requests for comment. The San Francisco Business Times was first to confirm the new lease, citing a previous report about Databricks’ expansion efforts by The Standard.
The software company in December announced a $10 billion funding round that boosted its valuation to $62 billion.
Databricks also has an office in Mountain View.
The company’s main rival, Snowflake, last year signed the Bay Area’s largest office lease, for 773,000 square feet in Menlo Park.
“AI companies are the single group committing to large-block office expansions in this market today,” said Derek Daniels, regional director of research at Colliers. “Considering the Bay Area is the global center of AI by venture capital and occupier footprint, we expect this trend to continue.”