New Office Demand Slips for Second Consecutive Month After August Peak
New demand for office space fell for the second consecutive month in October to its lowest rate since the first quarter of 2021, VTS said Tuesday. Down 30% nationally since peaking in August, all seven markets analyzed by the VTS Office Demand Index saw declining demand for office space over the two-month period.
“As we pass the 18-month mark since the start of the pandemic, employers and employees alike have largely adapted to a new way of working and in many cases, that means permanent remote or semi-remote work,” said Nick Romito, CEO of VTS.
He continued, “The longer we stay in limbo–the place where, even with vaccines and better COVID-19 treatments, there is still trepidation about returning to work–the greater the likelihood we have a permanent loss of demand for office space and eventually, a new normal. Time is not on the side of office leasing.”
- ◦Lease