The rapid rise of artificial intelligence and frontier technologies is dramatically reshaping demand for commercial real estate across major technology hubs in the Western United States, according to Barry DiRaimondo, CEO of SteelWave.From Silicon Valley to Southern California, a new wave of AI-driven startups, robotics firms, autonomous vehicle developers and synthetic biology companies is fueling fresh demand for office, industrial and specialised research spaces. And DiRaimondo says this surge is not limited to tech giants alone but is spreading rapidly across emerging sectors that are leveraging artificial intelligence to redefine entire industries.In an interview with Gulf Times, DiRaimondo explains how this technology boom is transforming workspace design, accelerating leasing activity in key markets, and influencing how real estate developers prepare for the next phase of innovation-led growth.DiRaimondo said SteelWave’s strength lies in its long-standing presence in innovation-driven markets. “We’ve been working in our markets for upwards of fifty years,” he noted, pointing to the firm’s footprint in Seattle, the Bay Area, Southern California, Denver and Austin. The company focuses heavily on technology clusters, particularly in the Bay Area, widely regarded as the world’s largest tech hub. Its tenant base spans traditional and venture-backed tech firms, media tech, defence tech and biotech companies.Explaining why SteelWave prioritises tech-driven companies, DiRaimondo offered a candid perspective. “If you’re in wealth management, you’d rather have wealthy clients than poor ones,” he said with a laugh. More seriously, he added that technology companies tend to view real estate not as a cost centre but as a strategic asset.“When companies see real estate as something they can brand around, cost becomes less important,” he explained. In many tech firms, property costs represent a relatively small percentage of overall expenses, unlike in sectors such as legal or back-office services. Over the past two decades, workplace design in America has also shifted dramatically. DiRaimondo said the “innovation workforce” now operates in highly collaborative, cross-functional teams spanning engineering, marketing and design. This has created a much more open, team-oriented environment,” he said. SteelWave has responded by developing 'live-work-play' ecosystems that integrate hospitality-style amenities. What began in the early 2000s as informal collaborative spaces has evolved into what he describes as an “arms race” in workplace amenities. Modern tech campuses increasingly resemble resorts, featuring advanced fitness facilities, indoor-outdoor spaces, conference centres, landscaped gardens and even climbing walls, pickleball courts and golf simulators.“The goal is to create environments where people want to stay,” DiRaimondo said. The surge in artificial intelligence is now adding another layer of momentum. “In the Bay Area, AI is clearly fuelling an explosion of demand,” he said, noting that growth is not limited to large AI firms but extends to robotics, autonomous vehicles and synthetic biology companies leveraging AI technologies.According to DiRaimondo, nearly 20 million square feet of users are currently seeking space in Silicon Valley and San Francisco — a level of demand not seen in years. In Southern California, the defence sector is emerging as a major driver of industrial real estate demand, particularly for properties with significant power capacity. Autonomous and AI-driven defence technologies are increasingly shaping tenant requirements.On the topic of tokenising US commercial real estate for international investors, DiRaimondo was cautious. “I’m not sure the regulatory environment has been fully baked yet,” he said.He identified three essential components that must align before large-scale tokenisation becomes viable: a clear regulatory framework, defined compliance and disclosure standards, and robust custody mechanisms.“In the world of real-world assets, those issues haven’t been fully agreed upon by regulatory agencies,” he explained, suggesting that tokenisation of publicly traded equities may advance more quickly because compliance structures are already in place.He believes tokenised real estate in the US remains at least a few years away from maturity, particularly in developing a vibrant ecosystem of institutional buyers and sellers.Asked about potential opportunities in the Gulf region, including Qatar, DiRaimondo said SteelWave is currently focused on markets where it holds a structural advantage.“Our team members are indigenous to the markets we operate in. They understand the participants and have deep local relationships,” he said. Expanding beyond those regions would dilute that advantage, he added.So, for now, the company intends to “stick to what we know” and build on its established strengths.Early innings of AILooking ahead, DiRaimondo sees AI as transformative but still in its early stages.“I don’t even know if we’re halfway through the first inning yet,” he said.He expects AI to reshape workflow dynamics and organisational structures, though the full real estate implications remain unclear. And SteelWave itself is exploring how to integrate AI into its operations.He also predicts shifts in the venture capital landscape. As AI reduces startup overhead costs, companies can launch with far smaller budgets than a decade ago. “You can do a lot more with less,” he said, suggesting that venture capital cheque sizes may shrink and that multi-billion-dollar funds could face challenges deploying capital efficiently in the future.With technology advancing at breakneck speed, “like getting a new iPhone every day,” as he described it, DiRaimondo believes the intersection of AI, innovation and real estate will continue to evolve rapidly.For SteelWave, however, the core focus remains unchanged: creating high-quality, amenity-rich environments for the innovation workforce that is shaping the next era of economic growth.
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