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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.”  

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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