Demand for Office Space Remains Paused at Two-Thirds of Normal as Employers Hold Off on Office Space Decisions
New demand for office space continued to plateau in May, maintaining gains made in March, according to the VTS Office Demand Index (VODI).
Two years after COVID-19 brought the office market to a screeching halt, most pent-up demand has been exhausted, and the VODI has stabilized around two-thirds of its pre-pandemic level. The primary driver of this stagnation? Companies appear to be holding off on office space decisions as they adapt to a shifting balance of remote and on-site work.
What is the VTS Office Demand Index (VODI)?
The VODI is the earliest available indicator of forthcoming office real estate trends, locally and nationally, and represents up to 99% of new demand for office space in seven major markets, including New York City, Washington DC, Los Angeles, Chicago, Boston, Seattle, and San Francisco. The VODI tracks tenant tours, both in-person and virtual, of office properties across the nation, and is the only commercial real estate index to track tenant demand.
The VTS Office Demand Index is powered by proprietary VTS Data, composed of aggregated and anonymized commercial real estate data from the 12B+ square feet of assets managed on the VTS platform.
Get today’s commercial real estate market trends in the latest VODI report:
- Which specific cities shifted from seasonal norms for office demand?
- Why markets with a metropolitan occupational mix more amenable to remote work coincide with weaker VODI recoveries.
- How does VODI’s performance in May stack against pre-pandemic years?
Download the full VTS Office Demand Index June 2022 report now for in-depth insights into demand recovery and detailed methodology.
Want to learn how to use the data in the VODI? The VTS Office Demand Index is just a sliver of the insights available to you. VTS Data is your competitive edge in today’s market. Learn how to reinvent your investment strategy using active anonymized data from the $200B in leasing transactions. Benchmark your performance against the market and stay competitive in an ever-changing industry. Using data only available on VTS, resolve questions about supply and demand, leasing efficiency, and tenant exposure to unlock – and unblock – deals. Learn more about VTS Data here.
Eager to learn more about how the pandemic has and will continue to impact long-term market dynamics of the office sector, especially as many companies continue to adopt hybrid and work-from-home models? Read our latest VTS Green Shoots Report here.
Read the official press release here.
