Office Leasing Activity May Pick Up This Year but Remains Well Below Pre-Covid-19 Levels

Article originally posted on Phoenix Business Journal on February 5, 2024

Office leasing activity has started to pick up in recent months, but it remains far from the level it was at before the Covid-19 pandemic.

VTS Inc., a commercial real estate leasing and asset-management platform, recently found through its VTS Office Demand Index (or VODI) that new demand for office space was up 19.6% on a year-over-year basis between December 2022 and December 2023.

That growth came especially in the second half of 2023. Each of the latter six months of the year saw gains in new office-space demand from the same month a year prior. Still, with the VODI at 55 at the end of 2023, that indicates office demand is about 55% of what was typical before the pandemic.

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