New Demand for Office Space Ends 2022 Down 21 Percent in December
Economic uncertainty loomed large in 2022, weakening tenants’ resolve and cooling the office market.
According to the latest VTS Office Demand Index (VODI) analysis, new demand for office space ended the year 31.3 percent below its May 2022 peak and fell 20.7 percent year-over-year to a VODI of 46 in December. A VODI of 46 indicates that new demand for office space was flowing in at 46 percent of its average in 2018-2019, a benchmark of the pre-pandemic normal.
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 markets are treading ahead of the rest?
- How does the decline in office demand this December compare to previous years, particularly pre-pandemic?
- What are some key trends we expect to see in 2023?
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? Check out the latest data from the VTS Green Shoots Report here.
Read the official press release here.
