AI Startups Are Leasing SF Apartments for Employees
San Francisco’s AI boom is reshaping more than office demand. Some startups are now leasing apartments for employees—often in the same buildings as other tech workers—to make relocation easier and keep teams close to the office.
It’s a practical move in a city where housing is competitive, and where many AI companies are pushing for intense in-person collaboration.
AI Housing as a Recruiting Advantage
Katie Patton, marketing director at Sentral, says interest from AI companies is strong. Sentral, a Denver-based operator, provides amenities and services at The Quincy and other San Francisco apartment towers that are especially appealing to AI workers.
“I think they use it as a recruiting tool,” Patton told the Business Times, noting “there’s tons and tons of interest” from startups leasing apartments for employees.
One example is Cluely, a San Francisco startup based in South of Market, which reportedly leased eight apartments so employees could live a one-minute walk from the office. Cluely CEO Roy Lee framed the goal clearly: “Going to the office should feel like you’re walking to your living room, so we really, really want people close,” he told the New York Times.
Does Corporate Leasing Push Rents Higher?
If you’ve searched for an apartment near downtown recently, you’ve likely felt the squeeze. Demand for walkable, transit-adjacent living has helped push San Francisco rents closer to New York’s, according to rental marketplace Zumper.
Still, Zumper argues that corporate leasing isn’t necessarily driving rents across the entire city.
“Corporate leasing can tighten rents in specific pockets, like where walk-to-office and transit-adjacent buildings are located,” Zumper spokesperson Crystal Chen told the Business Times. When companies lease a handful of apartments for high-skill hires, it removes some supply and can raise competition nearby.
But Chen added that corporate leasing typically acts as a pressure multiplier in certain neighborhoods, not a citywide rent driver—and that it’s also common in other high-cost job hubs like New York and Seattle.
Why AI Teams Want Employees Close to the Office
Having employees live near the office can help increase in-office attendance. New research from Placer.ai, which tracks foot traffic data, shows that proximity plays a role in office visitation.
For AI startups, that matters because many are pushing for high levels of in-person work to speed up decision-making and increase collaboration.
KPMG’s annual survey of Bay Area business leaders (released this month) points to the same theme: urgency. “It’s about speed,” said Chris Cimino, San Francisco office managing partner at KPMG. He noted that companies are moving quickly to capture opportunities rather than waiting for “the perfect climate” or “the perfect deal,” because “there’s a lot of competition, and it’s just a fast environment.”
That pace is especially intense for teams building frontier AI. Geetha Rajan, director of corporate strategy at Freshworks, wrote in a recent Business Times column that people working in AI often feel they’re part of a “once-in-a-generation shift,” which translates to longer hours and deeper focus. Rajan described today’s AI wave as “a targeted, high-value boom,” with innovation often happening at startups in neighborhoods like Hayes Valley and the Mission, while major AI players expand downtown.
What This Signals for San Francisco
Employer-leased apartments won’t reshape the entire housing market on their own—but they’re another clear indicator of what AI is doing to San Francisco: increasing the premium on proximity, whether that’s proximity to talent, to infrastructure, or simply to the office.
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