National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
New Demand for Office Space Continues to Plateau
New demand for office space continued to plateau in May, maintaining gains made in March, VTS said Wednesday. This is the eighth consecutive month where demand for office space remained between half and two-thirds of the pre-pandemic normal rate of demand, according to the VTS Office Demand Index (VODI).
“When an employer leases office space, they’re typically making a bet that they will need the space for the next five to ten years,” said Nick Romito, CEO of VTS. “So, given the uncertainty of how remote or hybrid will work out in the long run, many employers are pausing major leasing decisions until they know more about their long-term plans around remote work.”
Nationally, demand for office space increased from April to May by two VODI points (3.1%), from 65 to 67 and is up 21.8% quarter-over-quarter. However, the VODI is down 14.1% year-over-year,
- ◦Lease
