Landlord Sues Physical Intelligence Over San Francisco Warehouse Holdover as Anthropic Waits to Move In

The owners of a 98,000-square-foot industrial building at 2000 Folsom Street in San Francisco's Mission District sued tenant Physical Intelligence in San Francisco Superior Court, alleging the robotics startup stayed on after its lease expired and also expanded into unleased areas of the building without consent. The landlords are seeking possession and holdover damages exceeding $13,000 a day; the complaint states a new tenant is ready to move in, and sources have identified that incoming tenant as Anthropic.

Why it matters

The dispute illustrates how San Francisco's tightening market for ground-floor industrial and lab space, driven by AI and robotics companies competing for hardware-testing space the city's office stock cannot supply, is turning ordinary end-of-lease holdovers into fast-moving litigation once a landlord has a specific, well-capitalized replacement tenant waiting on the building.

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