VTS Inc.'s monthly tracker of office space demand, the VTS Office Demand Index, found demand for office space fell 11.5% in August, from 52 to 46. A measure of 100 is a baseline measurement of where office demand was in 2018 and 2019.
Companies are still trying to figure out how much space they'll need permanently in a post-pandemic world, he continued, a process that'll play out over years, given the long-term nature of office leases. The turbulent financial and global markets are also creating uncertainty, which means companies are looking at their balance sheets more carefully — and real estate costs could be on the chopping block or paused.
"It’s still a fact today," she continued."This is an opportunity to not wait and see, and to be transparent to your company and say 'we're working through this together, let’s push the ball forward a little bit.'" Its sublease availability index, meanwhile, increased by six points, to a pandemic-era high of 225. CBRE noted several medium and large sublease spaces were listed by technology companies, a sector that has, in years up to and since the pandemic, accounted for the biggest share of office leasing activity nationally.
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