Office Space Demand Continues to Rise for Sixth Straight Month, Led by Major Cities
According to the quarterly VTS Office Demand Index (VODI), demand for office space in the United States has increased on a year-over-year basis in December. This marks the sixth consecutive month of annual growth after 15 months of decline due to the COVID-19 pandemic.
The national VODI rose to 55, showing a significant increase of 19.6% compared to last year and a quarter-over-quarter rise of 7.8%. The index had hit its lowest point at 44 in December 2022 but has been steadily increasing since then.
Experts at VTS believe that this trend reversal is driven by positive economic data and stabilized work-from-home rates, which have reduced uncertainty and boosted employers’ confidence in committing to new office spaces.
“The first step towards recovering from this crisis is stopping further losses,” states Nick Romito, CEO of VTS. “Our data suggests that we have achieved this goal; however, it’s still too early to declare victory nationally. While there are signs of stability and potential recovery ahead, any unforeseen events could easily disrupt progress.”
This report was originally published on Connect CRE website.
