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New Office Space Demand Posts Second Monthly Increase
New demand for office space rose for the second consecutive month, up 8.3% from a VTS Office Demand Index (VODI) reading of 48 in September to 52 in October. The cumulative six-point increase from September and October has fully reversed the VODI’s August decline, bringing the VODI back to its July 2022 level.
Rises in new office demand are typical for October, VTS said. “Staying on track with seasonal norms and recording the first two-month increase streak since early 2021 are both welcomed signs of potential stability in the market,” said VTS CEO Nick Romito. However, he added, “Heading into the end of the year, we’re still left with a lot of unknown.”
Locally, each city tracked by the VODI was impacted by either the presence or absence of new demand from large tenants. Los Angeles, Washington, DC, Chicago and New York City all recorded sizable monthly growth in their VODI levels, while Boston, San Francisco and Seattle withstood comparably large declines.
- ◦Lease
