Recovery in Office Demands Stalls Out in New COVID Surge
The emerging recovery in office space demand has stalled amid a resurgence of COVID-19 and continued economic uncertainty, according to the newly issued VTS Office Demand Index (VODI). Demand is down 56.4% from February, although markedly higher than spring’s low point.
Pre-COVID-19, the national VODI was consistently around 100 for roughly two years. It had slipped to 94 this past February and plummeted to 15 by May. October’s reading is 41.
“This is, by far, the worst contraction in recent history for the office market as businesses grapple with a global pandemic,” said VTS CEO Nick Romito. “While we started to see some signs of life over the summer, businesses experienced a second wave of uncertainty in October due to resurgence of the virus, the elections and the markets. We expect it’s going to be a bumpy ride for months to come, although we’re confident in a long-term recovery.”
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