According to VTS, the demand for office space has remained at around half to two-thirds of pre-pandemic levels for the past two years. This trend is expected to continue in the foreseeable future due to high rates of remote work and a cooling job market, as indicated by VTS’s quarterly Office Demand Index (VODI).
VTS CEO Nick Romito states that this current state of stability in office demand is likely to persist. Despite facing challenges, there are signs of growth in the office market. The new demand for office space has remained consistent over the past two years despite these obstacles, which demonstrates its resilience.
The latest VODI score stands at 51, indicating that national demand for office space remains below pre-pandemic levels. However, this figure is only slightly lower than Q2 and higher than a year ago by three points on the VODI scale. A normal level on this index would be 100 based on historical data.
This article was originally published on Connect CRE.
