In most cities in the U.S., employers are still struggling to convince workers it's time to go back to the office. That is continuing to depress demand for office space, according to the VTS Office Demand Index (VODI) July 2023 quarterly report.
VTS, a technology platform that provides real-time CRE market information, claims VODI is the earliest available indicator of upcoming office leasing activity and the only one to track new tenant demand.
"Nationally, demand for office space fell 15.9% quarter-over-quarter to a VODI of 53 from 63 in March 2023, and 15.9% annually," the company reported. And even though a drop in the summer months is normal, this drop was exceptionally large – well above the 0.9% in 2018 or 4.5% in 2019 and 2020.
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