Office leasing activity has shown signs of recovery in key markets and sectors in recent months. However, that momentum may be at risk as global economic instability and a potential trade war threaten to stall progress.
According to the VTS Office Demand Index, which measures early-stage office-leasing interest, the first quarter of the year showed signs of softening. While the index rose 4.6% year-over-year, monthly declines in January and February ended a 20-month streak of consistent annual growth.
Despite the slowdown, early 2025 brought encouraging trends. Demand from tech companies, largely absent from the office market since the onset of the Covid-19 pandemic, began to reemerge. Markets like San Francisco, which experienced some of the deepest post-pandemic disruptions, also saw a noticeable uptick in touring activity, signaling renewed interest from potential tenants.
*Article courtesy of Philadelphia Business Journal
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