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New York Leads Major Cities in Office Demand Recovery
New York City has regained almost 50% of its initial pandemic decline in new demand for office space, with Los Angeles coming in second at 40% recovery, VTS reported. At the other end of the spectrum, San Francisco has seen the smallest recovery at 25%, as well as the biggest year-over-year decline. New York’s strong presence of more traditional sectors that favor onsite work may give it an edge over tech-centric San Francisco, according to VTS.
Nationally, demand for new office space has recovered 35.7% of its initial decline at the onset of the pandemic and is just under half the 2018-2019 average. January’s new demand was unchanged from December 2022.
“While January was a relatively quiet month both nationally and locally, it’s encouraging to see some momentum in a return to on-site vs. remote work for companies across the country,” said Nick Romito, CEO of VTS. “January is generally a time for companies to reevaluate strategies before ramping up in February and March. It will be interesting to see if momentum continues to build for more on-site work and for the leasing market.”
- ◦Lease
