Artificial intelligence is driving a surprising surge in office demand, according to Newmark’s Liz Hart, who says tech firms and startups are expanding their footprints rather than shrinking them in a return-to-office revival.
Newmark is a global commercial real estate advisory firm that counsels Fortune 500 occupiers and major landlords on leasing, strategy and transactions. Hart, the president of leasing, runs the firm’s North American leasing business — in other words, she sits on the live tape of tours, proposals and signed deals coast to coast.
Hart told FOX Business’ Stuart Varney on “Varney & Co.” that 70% of tenants touring office space across the U.S. are looking for the same or larger square footage.
“What the numbers are showing us,” she said, “is that what Jamie Dimon says is correct — tenants are looking to grow and have their employees back in the office.”
JPMorgan Chase CEO Jamie Dimon has been blunt about why it matters to be in the room: employees learn by osmosis and through “accidental” hallway collisions — the kind you don’t get “in a basement on Zoom.” His point is that the old apprentice system works best in person — and it sets the table for what we’re seeing in office demand.
Hart argues that the office remains central to innovation, especially in the age of artificial intelligence.
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“People are looking to solve bigger and different problems,” she said. “That’s much easier to do when you’re in person.” Hart notes that spontaneous hallway encounters often make it easier to solve problems together.
Tech companies are leading the way, with nearly 60% of tenants in that sector looking to grow. The momentum, Hart said, signals that hybrid mandates may not be enough — but she cautions that forcing workers back isn’t the solution.
“Most of us don’t react to mandates past the age of five,” she joked. “We have to start with purpose and with trust, so hopefully it’s not just a mandate to get a badge swipe, it’s a mandate to solve a larger problem.”
Hart also pointed to artificial intelligence as a double-edged force — increasing productivity per employee while also driving new business creation.
“We’re tracking companies just two or three years old taking over 100,000 square feet,” she noted.
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That’s good news for America’s major cities.
“We’re seeing growth again in San Francisco, Calif., New York City and even Palm Beach, Fla.,” Hart said. “There are companies making bold moves in cities one might not expect because they’re able to re-skill those workers and have them retrained in artificial intelligence — and I think that’s quite encouraging for different talent pools across the country.”
ServiceNow just committed to a major West Palm Beach build-out — an innovation hub tied to artificial intelligence with hundreds of hires and up to approximately 200,000 square feet — exactly the kind of “bold move” Hart says is returning to major (and unexpected) markets.
The office is no longer a relic of the pre-artificial intelligence era — it’s the infrastructure enabling it. Tenant demand continues to strengthen as technology firms expand footprints and new AI-driven enterprises emerge, fueling growth across major and emerging markets alike.
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