Reed Jobs says post-Covid office cheapness fuels AI boom north of San Francisco

Reed Jobs told the Sabrina Halper Show that the pandemic’s impact on San Francisco office prices created a catalyst for the city’s tech renaissance north of the traditional downtown core. He pointed to AI-focused firms—OpenAI, Anthropic and Chai Discovery—as signs that the “energy” has migrated away from historic Silicon Valley centers such as Palo Alto, where Apple, Google, HP, IBM and Sun Microsystems once clustered.

According to a fourth-quarter 2025 Cresa study, the Design District, with rents near $59.53 per square foot, is now drawing startups, contrasted with the Financial District and Mission Bay where rates exceed $70. Jobs, a longtime Palo Alto resident now based in San Francisco for nine years, said the cheap space made it easier to launch new ventures. He noted his own firm, Yosemite, invests in oncology and will stay “in the thick of things” by remaining in San Francisco. The shift reflects broader trends favoring affordable, flexible office environments for high-growth companies.