Office Space Demand Falls for the Second Consecutive Month as Post-Vaccine Surge Subsides
New demand for office space fell for the second consecutive month in October to its lowest rate since the first quarter of 2021, suggesting that the initial post-vaccine surge of demand has run its course, according to the VTS Office Demand Index (VODI). Down 30% nationally since peaking in August, all seven markets tracked by the VODI saw declining demand for office space over the two-month period.
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 November VODI report:
- Why is office demand believed to be declining?
- In what markets did demand for office space fall by at least 24 or more?
- What does office demand look like between remote-friendly vs. office-using markets?
- Which market experienced a considerable decline in demand last month?
Download the full VTS Office Demand Index November 2021 report now for in-depth insights into demand recovery and detailed methodology.
Want more? The VTS Office Demand Index is just a sliver of the insights available in VTS Data. VTS Data is the industry's only forward-looking market data powered by the $200B in leasing transactions managed on the VTS platform. Our latest infographic — From Positioning to Pricing: Repositioning a Vacancy — shows just one of the many ways you can put this market data to work. You can also learn more about the full VTS Data offering on our all-new resource page.
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Update: Due to the November VTS Office Demand Index reporting period falling during the holiday season, the November 2021 data will be reported in conjunction with the December 2021 data in January 2022. In the meantime, happy holidays, and have a happy New Year!
