Overview
- The VTS Office Demand Index, released Tuesday, rose 18% from Q4 and 13% from a year earlier to its highest level since before the pandemic.
- VTS tracks in‑person and virtual tours, a leading gauge that typically signals lease signings about a year in advance.
- Tech firms tied to the AI boom led the rebound, with finance and legal tenants also driving Q1 gains, according to VTS executives.
- The recovery is uneven: San Francisco jumped 70% quarter over quarter, New York and Los Angeles logged double‑digit gains, and Boston fell 31% year over year as Seattle, Washington, D.C., and Chicago contracted on the quarter.
- JLL reports national vacancy at 22.2%, down slightly but concentrated in older, larger buildings, while office‑using employment remains about 2% below late‑2022 levels.