San Francisco's real estate market is booming due to AI-fueled rebound in property values, according to Piper Sandler, an investment bank. The bank upgraded Essex Property Trust (ESP) to overweight from neutral due to the booming property market. The company's growth is attributed to a lack of new supply and increased demand from tech professionals in the Bay Area, which is bringing more highly-paid professionals into the city. The analyst predicts that ESS will raise its guidance and other office and retail REITs will also benefit from this trend. San Francisco is now the second fastest growing annual rent change in the metropolitan area, with prices up 5.1% year-over-year in San Francisco, behind only Virginia Beach and San Jose.