A nonprofit group research founded by Microsoft co-founder Paul Allen became the first tenant at a newly developed office building in Seattle, helping increase the city's cachet as a major hub for artificial intelligence research.
The Allen Institute for AI, known as Ai2, signed a lease in July for the entire third floor of the 158,000-square-foot Northlake Commons at 3800 Latona Ave. NE on the northeast side of Lake Union.
Ai2, founded in 2014 by the late Microsoft co-founder and philanthropist, brings together a team of engineers and other professionals from various disciplines to focus on AI research.
Northlake Commons, finished last year on a slope near the Burke-Gilman Trail that overlooks the lake, is notable for being Seattle's first large-scale mass-timber office building.
The institute's move to just under 50,000 square feet at Northlake Commons more than doubles its previous space at nearby Emerald Landing.
The deal also builds on the corridor's emerging reputation as a hub in Seattle for AI research. Leasing by AI startups has been a silver lining for the national office market as larger tech companies such as Google, Microsoft and Amazon have downsized their real estate holdings, even as they focus on AI and other investments.
The significance of the lease in the evolution of Seattle's AI industry, along with Ai2's move to the sustainable Northlake Commons, earned the project a 2025 CoStar Impact Award, as judged by real estate professionals familiar with the market.
About the project: The Northlake Commons project was developed by Seattle-based Hess Callahan Grey and San Francisco-based Spear Street Capital. Ai2 leased the third floor of the mass-timber building that completed construction in 2024 and features multi-use outdoor spaces with access to water activities. Northlake Commons also has a bike room with lockers and showers and private roof decks.
What the judges said: "In addition to being a great lease rate in an incredible new building, the deal further solidified the Northlake corridor as a clear AI hub," said Tyler Barth, senior vice president of investments at Kilroy Realty Corp. "The transaction also achieved a market-leading rent in an industry that the world is watching."
"AI2 is at the forefront of AI research, and this lease marks the largest AI lease Seattle's history," added Jacob Pavlik, research manager for Colliers. "Being the first tenant in North Lake Union, an active micromarket, and the first major mass timber building in Seattle are also notable features making this an impactful lease."
They made it happen: JLL Executive Vice President Lloyd Low and Senior Managing Director Joe Gowen represented the landlord in the transaction. James Yalowitz of Kidder Mathews represented AI2.