The Delta Variant infected demand in office space in July, as virtual and in-person tour volume dipped, according to the VTS Office Demand Index (VODI). The mark snapped a six-month streak of growth in new demand for office space.
The rise in COVID-19 cases as well as normal seasonal headwinds were factors. Despite this, the monthly decline is lower than the typical July pre-pandemic seasonality in both 2018 and 2019.
"The delta variant is causing some uncertainty across the economy, so it's no surprise we're seeing that reflected in demand for office space as well," said VTS CEO Nick Romito. "But there's no need to hit the panic button yet. We're likely looking at another delay to full recovery, but early indications point to continued relative stability as seen earlier in the year—not the massive drop-offs we saw when the pandemic first began."
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