Physical Intelligence Subleased 80,000 Square Feet at 850 Brannan
The robotics firm expanded its local footprint by taking space formerly held by Airbnb.
Updated on Sept. 30, 2026 in Remote Work
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Robotics startup Physical Intelligence has subleased 80,000 square feet of office space at 850 Brannan Street in San Francisco. This expansion follows the company's recent $1 billion funding round secured in May 2026.
Why it matters
The move is a major component of the company's growth as it transitions from robotics research toward commercial applications. It reflects the broader ongoing recovery of the city's commercial real estate market.
San Francisco's office vacancy rate reached 28 percent in the third quarter of 2026, while the city recorded 4.3 million square feet of net office absorption this year. Total investment in robotics startups across the sector hit $12 billion in 2025.
The players
Physical Intelligence
A rapidly growing robotics startup shifting from research to commercial applications.
Airbnb
The travel technology company that is subleasing a portion of its long-term master lease on Brannan Street.
The details
Physical Intelligence is scaling its operations by securing large chunks of office inventory across the region, including this new sublease from Airbnb. The startup maintains a 16,000-square-foot headquarters at 396 Treat Avenue and has previously leased 60,000 square feet at 808 Brannan Street. Airbnb remains the master leaseholder for its space on Brannan through 2037.
Timeline
2024: Physical Intelligence was founded.
2025: $12 billion was invested into robotics startups.
March 2026: The company leased 60,000 square feet at 808 Brannan Street.
May 2026: Physical Intelligence raised $1 billion in funding.
2037: Airbnb's master lease at 888 Brannan Street ends.
Across the Bay
This deal follows the city's 2026 trend of 4.3 million square feet in net office absorption. The expansion suggests that despite a 28 percent vacancy rate, tech-adjacent firms are actively claimining large office footprints.
Residents near 850 Brannan Street may see increased activity as the robotics company scales its operations. This lease solidifies the area's ongoing transformation into a cluster for high-growth tech and robotics firms.
The takeaway
Keep an eye on the Brannan Street corridor to see how incoming hardware and robotics firms influence local neighborhood transit and dining patterns. Tracking major office moves provides a reliable indicator for future employment growth in the city.
Further reading
For more on how local office space is being repurposed or occupied, visit Remote Work.
Source note: This article includes information reported by The Real Deal New York.
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