The office market’s recovery has been a slow one since the days of the COVID pandemic. One reason? Tenants are pickier today about the office space that they occupy. A good example can be found in the world of Big Tech.
According to the latest research from Newmark, Big Tech still values the office, but companies operating in this space want fewer buildings, better locations and higher-quality workplaces.
That’s one of the key findings from Newmark’s new report, “Big Tech’s U.S. Office Strategy Is Clear: Concentrate, Upgrade, Expand.” The report shows that major technology companies are reshaping their office footprints after years of contraction, expanding in key markets while focusing heavily on top-tier office space.
According to Newmark, the 100 largest office leases signed by U.S. technology occupiers during the 12 months ending in the first quarter of 2026 totaled 16.5 million square feet spread across just 14 markets. The average deal size climbed 33% year-over-year to 165,000 square feet, a jump fueled largely by artificial intelligence and AI-related firms.
More than half of the top 100 office leases from tech companies were signed in the San Francisco Bay Area, with New York City ranking third and Boston also posting strong activity. Together, the five leading markets captured 85 of the 100 largest technology leases in the country.
The trend reflects technology companies’ desire to locate near the best talent and established venture capital sources. Newmark’s report noted that 78% of all U.S. venture capital funding directed toward AI companies during the first quarter of 2026 flowed to Bay Area firms. That concentration of talent and capital is creating fierce competition for premium office space in these markets.
The companies behind these leases are also changing. While large, established technology firms remain significant office users, AI companies are rapidly becoming major occupiers, too.
Newmark pointed to the growth of companies such as Anthropic, which occupied less than 25,000 square feet in San Francisco when it was founded in 2021. Today, the company controls more than 900,000 square feet in that market and is pursuing additional large leases in New York and Seattle.
These tenants also value higher-quality office space. According to Newmark’s report, 83% of the largest technology leases were signed in top-tier properties, mostly Class-A and trophy buildings. Among tenants that relocated, nearly half upgraded to better-quality space, and every tenant that upgraded also expanded its footprint, Newmark reported.
This isn’t surprising. Technology companies are using high-quality office spaces with plenty of amenities as recruiting and retention tools. This is partly why top-quality office properties boast such lower vacancy rates today than do lower-quality spaces. And because construction in the office sector has dwindled so significantly? Newmark said competition for high-quality office space is only going to increase.
Despite the attention paid to remote work during the pandemic, Newmark reported that most technology companies are not abandoning the office. According to Newmark’s research, 78 of the top 100 transactions resulted in tech companies expanding their footprints. Only four contracted. Forty-nine of those expansions involved AI or AI-adjacent companies.
Some examples? Financial technology company Brex committed to nearly 100,000 square feet in San Francisco after previously embracing a fully remote model. Ramp AI quadrupled its San Francisco office footprint, while New York-based Clay Inc. more than tripled its occupied space. Harvey AI more than doubled its office footprint through multiple leases over the course of the year, Newmark reported.
The report also found that renewals remain a favored strategy. Thirty-eight percent of the top leases were renewals, while 42% represented expansions and just 20% involved relocations. High construction costs and a shortage of large blocks of premium space are making it attractive for companies to remain where they are, especially if they can expand within their existing locations.
Newmark found, too, that office leases today are lengthening. New direct leases averaged 120 months in length, slightly longer than a year ago and only modestly shorter than before the pandemic, according to Newmark’s report. Those commitments suggest that technology companies still see physical offices as essential tools for the growth of their firms.
