Demand for office space in the city increased substantially in Q1, yet according to a recent analysis Seattle is one of the nation’s top holdouts when it comes to returning to the office.
The latest VTS Office Demand Index, or VODI, tracks new tenant tour requirements in core U.S. markets and is used as an early indicator of upcoming office lease activity. In March, Seattle’s VODI score was 47 – which means 47% of the average demand level from 2018-2019. By contrast, the U.S. office market as a whole scored a 65, which is the ninth consecutive month of positive growth.
San Francisco and Washington D.C. ranked lower than Seattle, with VODI scores of 41 and 44, respectively. Boston (51), Chicago (52), Los Angeles (85) and New York City (86) are showing increasing numbers of people returning to the office, with the latter recording the highest upward thrust of demand for office space of all markets in March.
As for Seattle and the Bay Area’s persistently low numbers, VTS CEO Nick Romito believes they’ll take longer to rise. These regions experienced more of a culture shift as employees settled in to the work-from-home lifestyle during the pandemic. Despite strong job growth in both Seattle and San Francisco, neither city is seeing a commensurate increase in the number of days working from the office.
This post was based on information found on Puget Sound Business Journal.
