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NYC Leads as National Office Space Demand Surges

National demand for office space surged in March, up 28% from February and 161% in the first quarter, and is now just 9% off pre-pandemic levels, VTS reported Wednesday. The firm’s hometown of New York City saw demand ratchet up 191% during Q1, and was one of only three markets to break the 100-point barrier in the latest VTS Office Demand Index.

Assuming national growth trends continue, demand in April is on-track to meet or exceed pre-pandemic levels. However, a potential fourth wave of COVID-19 combined with stalled growth of office-using employment could temper, but not stall, office demand growth.

“Whether it be due to suppressed demand or bargain prices in some areas, employers are running, not walking, to find office space for their employees,” said VTS CEO Nick Romito. “The turnaround has truly been remarkable and is a testament to the resiliency of our country in the face of disaster.”

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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 16-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 7-10 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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