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San Francisco, New York Top VTS Office Demand Index
San Francisco reclaimed the top spot for office demand in the third quarter of 2026, VTS reported Wednesday. The latest VTS Office Demand Index (VODI) shows the city, with a VODI of 87, has gained 21 points since year-end 2025, more than any other market. New York City followed closely behind at 84.
National office demand slowed in Q3 but remained above year-end 2025 levels as performance across major markets evened out and AI demand shifted toward a larger number of smaller requirements. The national VODI finished Q3 at 67, down 11% from Q2 and 7% year-over-year. Even with the slowdown, the index remained 3 points above year-end 2025 and posted the second-highest Q3 reading since 2020.
“AI is still the most important source of new office demand, but it is entering a more mature phase as a growing number of AI companies come to market with more measured space needs,” said Nick Romito, CEO of VTS. “At the same time, markets like Los Angeles are showing that durable demand can come from a broad mix of industries and that is helping close the gap between the market leaders and the rest of the country.”
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