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New Office Demand Slips for Third Consecutive Month
New demand for office space fell for the third consecutive month in August, sinking below half of its average pre-pandemic pace, according to the latest VTS Office Demand Index analysis. The national VODI fell by six VODI points, or 11.5%, from 52 in July to 46 in August, its lowest level since February 2021. Year-over-year, it’s down 47.1%.
“A summer slowdown is typical for office demand, but what remains to be seen is if this downward trend will continue or if we’re simply settling into a new ‘post-pandemic normal’ for office demand levels,” said Nick Romito, CEO of VTS.
He added, “Economic concerns, particularly around inflation and rising interest rates, have created a cloud of uncertainty that’s hanging over the office leasing market. Until the economic outlook becomes clearer, some employers may continue to delay or approach the search for office space with caution.”
- ◦Lease
