Another AI Startup Expands in Downtown San Francisco

San Francisco’s AI momentum continues—this time with Harvey AI making a major office move.

Fresh off a recent funding round, Harvey AI—an artificial intelligence startup focused on legal tech—is finalizing a lease for 92,000 square feet at 201 3rd St., a building owned by Kilroy Realty Corp., one of the Bay Area’s major commercial landlords. While neither company confirmed lease details publicly, Harvey has stated it plans to relocate to its new space later this fall.

This move marks a significant step up from Harvey’s current 30,000-square-foot office at 575 Market St. The company had previously explored a deal at 525 Market St., but ultimately shifted focus to the Yerba Buena neighborhood, right across from Moscone Convention Center and near SFMOMA.

Harvey’s growth comes amid broader shifts in San Francisco’s office market, which has seen renewed demand from AI companies. Harvey itself has been scaling rapidly, following a $300 million Series E funding round that valued the company at $5 billion. Investors include Kleiner Perkins, Sequoia Capital, Coatue, and OpenAI.

The startup also recently announced key hires, including former Twitter engineering leader Siva Gurumurthy as CTO and John Haddock, a former Stripe executive, as Chief Business Officer—both expected to drive more hiring in 2025.

For Kilroy, the lease is a notable win. The company hasn’t secured a San Francisco deal of this size in years. In fact, its biggest deal prior was a 57,000-square-foot renewal by Amplitude in 2019. Kilroy still has a significant share of vacant and sublease space across its Bay Area portfolio, according to its latest financials.

Citywide, office vacancy in San Francisco has hovered above 30% for several years but has recently begun to improve. CBRE projects 2025 could be the city’s best leasing year since 2019, when 12.6 million square feet was leased.

According to JLL, AI companies have more than doubled their footprint in the Bay Area—from 4.8 million to 10.8 million square feet—over the last two and a half years.

Source: San Francisco Chronicle
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