According to the quarterly VTS Office Demand Index (VODI), a bottom was reached in late 2022 and early 2023 after more than a year of increasing demand for office space nationwide. The VODI recorded its 12th consecutive month of year-over-year growth, reaching a score of 62 at the end of the second quarter – an increase of 17% from the previous year and a significant jump from its low point in December 2022 and January 2023 when it hit rock bottom at just 46.
This determination is supported by VTS, who noted that there has been a noticeable shift in office-using employment. While this type of employment saw steady growth until August
of
2022, it then experienced a decline by early
of
2014 before stabilizing with almost no change since then. Additionally, work-from-home rates have also decreased recently which has contributed to an increased demand for physical office spaces.
Nick Romito, CEO of VTS stated: “They say you can only recognize market bottoms after they have already passed us by; however this is also true for demand within the office space sector. In these months following our declaration that we’ve reached rock-bottom levels,
the national needle has slowly moved upwards leaving room for potential setbacks due to economic challenges.” He added: “Nevertheless,
the consistent growth seen over the past eighteen months through our index combined with positive data on offices using workforce leads me to believe that we have successfully reset ourselves as well as left behind what could be considered some very difficult times.”
