OpenAI Plans to Add 100,000 Sq Ft of San Francisco Office Space
San Francisco, California | September 22, 2026: OpenAI is in talks to add approximately 100,000 square feet of office space in San Francisco’s Mission Bay, potentially expanding its local real estate footprint to more than 1.1 million square feet as the AI company continues to grow its operations.
The proposed space is at 500 Terry A. Francois Blvd., directly next to OpenAI’s existing Mission Bay office at 550 Terry A. Francois Blvd. The reported transaction would be structured as a sublease from Cisco, rather than a direct property acquisition or a new standalone lease.
What Changed With OpenAI’s San Francisco Footprint
OpenAI is reportedly nearing a deal to sublease roughly 100,000 square feet at 500 Terry A. Francois Blvd.
The six-story building is owned by the Sobrato Organization and is leased by Cisco, whose Meraki business has operated from the property. Cisco still has several years remaining on its lease, making a sublease the reported route for OpenAI to access the space.
The agreement has not been finalized, so the reported 100,000-square-foot addition should be treated as prospective rather than completed.
Why Mission Bay Matters to OpenAI
The proposed space sits beside OpenAI’s existing 315,000-square-foot office at 550 Terry A. Francois Blvd.
Adding another nearby block would allow OpenAI to expand its operations while keeping its workforce concentrated around the same Mission Bay campus.
The potential deal would take OpenAI's Mission Bay presence above 1.1 million square feet, according to reporting on the proposed transaction.
OpenAI Has Already Built a Major SF Real Estate Base
The potential 500 Terry A. Francois deal follows several significant office commitments by OpenAI in San Francisco.
The company previously took over approximately 486,000 square feet across two buildings at Uber's former Mission Bay campus in 2023.
It subsequently leased the 315,000-square-foot 550 Terry A. Francois Blvd. building and earlier this year signed a 280,000-square-foot sublease at 1800 Owens, the former Dropbox headquarters.
The latest proposal would therefore continue a pattern of OpenAI adding large blocks of existing office space rather than waiting for entirely new construction.
What It Means for San Francisco Office Real Estate
The potential expansion comes at a significant point for San Francisco's office market.
Large technology tenants taking substantial blocks of space can create demand for buildings that might otherwise face longer vacancy periods. OpenAI has itself used subleases and properties previously occupied by other technology companies as it has expanded.
The company's reported search for additional Mission Bay space also highlights a practical challenge for fast-growing companies: finding large contiguous office blocks close to an existing campus can be difficult.
Why the Sublease Structure Matters
The proposed transaction is different from a conventional direct lease.
OpenAI would reportedly take space from Cisco's existing lease at 500 Terry A. Francois Blvd. That allows the AI company to obtain additional capacity without becoming the building's primary tenant or owner.
For San Francisco property owners and office investors, large technology-company subleases can also provide another route for filling significant blocks of available space in a market where tenant demand remains uneven.
What Property Owners Should Watch
If the transaction closes, several factors will determine its broader real estate impact:
- The final amount of space OpenAI takes
- The length and terms of the sublease
- Whether OpenAI continues adding space elsewhere in San Francisco
- Demand from other AI and technology companies
- Availability of large office blocks in Mission Bay
- Future development and leasing activity around the neighborhood
The concentration of major technology occupiers in Mission Bay could remain an important factor for the area's commercial property market.
What Happens Next
The immediate next step is completion of the reported sublease.
If finalized, OpenAI would add approximately 100,000 square feet at 500 Terry A. Francois Blvd., further consolidating its San Francisco operations around Mission Bay.
For the city's office market, the deal is another closely watched technology-sector expansion that could add to demand for large, high-quality office spaces in one of San Francisco's major redevelopment districts.