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New Office Demand Drops Nationally in July
New demand for office space fell in July to just over half of its pre-pandemic pace, according to the latest VTS Office Demand Index (VODI) analysis. Among the seven core markets tracked by the VODI, Chicago, Boston and New York City recorded the largest VODI declines in July.
Nationally, new demand fell 11 VODI points from 63 in June to 52 in July, representing a 17.5% month-over-month drop to its lowest level since February 2021. While a July decline was normal before the pandemic, this year it’s three times greater.
“We’re used to seeing demand for office space cool in summer months, but not at this rate,” said VTS CEO Nick Romito. “Unique to 2022 is an economic outlook that is continually shifting and is likely contributing to a reduction in new office demand, as uncertainty causes some potential tenants to delay or reconsider their current office space needs.”
- ◦Lease
