Demand for office space dropped sharply across the US in the fourth quarter in every major market but Los Angeles and San Francisco, according to data released this week by the VTS Office Demand Index.
VTS research, which tracks both in person and virtual tenant tours of commercial office properties, showed that office leasing demand was down 61% year-over year, with a modest recovery this summer sandwiched between two steep dropoffs at the beginning of the pandemic and the end of the year. Demand reached a six-month peak in September, 43 index points, but dropped 26% in the fourth quarter to 32.
The national VODI in February 2020, right before the pandemic began, was 94.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
