Office Sector Trends - Tenant requirements increased by 28% in 1Q24 compared to 1Q23[3] - Gross leasing activity accelerated by 14% in 1Q24 compared to 1Q23[3] - Sublease additions decreased by 67% from March 2024 compared to the December 2022 peak[3] - The development pipeline shrank by 62% from 2023 compared to 2019[3] - Remote job postings on LinkedIn declined by 12 percentage points from February 2022 to December 2023[3] HPP Market Performance - Tenant demand increased in West Los Angeles, San Francisco, and Silicon Valley[4] - Sublease availability decreased in West Los Angeles, San Francisco (by 400K sq ft), and Silicon Valley (by 500K sq ft)[4] - Under construction as a percentage of inventory decreased in West Los Angeles (~130 bps YOY), Silicon Valley (~290 bps YOY), and Seattle (~370 bps YOY)[4] - AI companies in San Francisco leased 228K sq ft YTD, with another 825K sq ft of requirements in the market[9] - Bay Area received 78% of approximately $10 billion in US AI VC funding in 1Q24[10] HPP Leasing Activity - HPP executed 305K sq ft of leases in April-May, with 83% being new leases[12] - HPP's current pipeline increased 10% to 2.0M sq ft compared to 1Q24[13] - HPP signed 91K sq ft of leases at 411 First, increasing occupancy from 57% to 93% between 2Q22 and 1Q24[18]