Springtime office demand got off to an especially strong start in March, according to the latest VTS Office Demand Index (VODI). The index reported a 31.3% increase from February, surpassing the month-over-month growth recorded in pre-pandemic 2018 and 2019. Nationally, the VODI jumped 15 points to a level of 63 – still down 4.5% from a year ago but narrowing significantly compared to February’s gap.
Nick Romito, CEO of VTS commented on this resurgence: “The Fed’s streak of interest rate hikes and severe weather lashing all areas of the country likely sidelined office touring activity and leasing decisions for many employers over recent months.” He continued: “The sluggish start left us uncertain as whether we’d see normal levels return; thankfully we saw more than that.” San Francisco experienced particularly strong recovery with new office demand among major markets leading this surge forward.
