Office Space Demand Rebounds as Omicron Surge Recedes
New demand for office space surged in March, up 20% from February and 8.2% year-over-year nationally, VTS reported. This comes after five months of stagnation in the VTS Office Demand Index due to compounding COVID-19 variants and remote work.
Despite underperforming in February, office space demand is now two-thirds of its pre-pandemic average, up from just half in February, with the greatest gains in Boston and Washington, DC. March 2022’s growth likely indicates that concerns about the COVID-19 omicron surge eased enough for prospective tenants to tour office space closer to their typical seasonal pace.
“Looking ahead, I expect that we’ll continue to see demand ebb and flow in a typical seasonal pattern, but to really get out of the prolonged period of depressed demand we have seen as of late, we’ll need to see demand exceed seasonal norms over the course of many months,” said Nick Romito, CEO of VTS.
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