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VTS: NYC Sees Big September Increase in Office Demand
New York City was the outlier among major U.S. office markets in September when it came to month-over-month changes in demand, reported VTS. After a sharp decline from a VTS Office Demand Index (VODI) of 80 in May to 44 in August, demand regained 10 VODI points in September, a 22.7% increase month-over-month erasing nearly half NYC’s prior four-month loss.
Nationally, demand grew by two VODI points in September after three consecutive months of declines. Demand fell 2.5% in San Francisco, 6.1% in Boston, 6.5% in Chicago and 7.3% in Los Angeles. Demand in Washington, D.C. grew 1.6%, and stayed flat in Seattle at a VODI of 44.
“Demand for smaller office spaces in particular has remained steady,” said VTS CEO Nick Romito. “This could reflect a dynamic where smaller tenants delay leasing plans while larger tenants shrink their requirement size, making up for lost demand in the small-space category.”
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