New data from the VTS Office Demand Index (VODI) shows that the Delta variant has not had a significant impact on office occupancy compared to initial Covid lockdowns.
In fact, office demand rose to a 15-month high in August and currently sits just 13% below pre-pandemic levels.
“While it may be a bit premature to say that there will not ever be a material impact on new demand and office-using employment as of right now, we’re not seeing it,” said Nick Romito, CEO of VTS. “Companies, even if delayed, are making plans to get their employees back in the office and that bodes well for the office space market.”
According to the VODI, demand for office space has grown 235% year-over-year. Aside from the VODI falling by 1.2% in July, it has risen each month in 2021.
Despite fears the office would become obsolete as a result of the pandemic, it appears that it is simply serving a new purpose. Instead of traditional workspaces, companies are embracing coworking and flexible offices that help meet the demand for hybrid work solutions.
