Notwithstanding anxiety over the current war in Iran and economic uncertainty at home, U.S. office demand reached its highest level since before the pandemic in the first quarter of 2026, according to the latest VTS Office Demand Index (VODI) report. The increased Q1 growth stemmed mainly from finance, legal and technology tenants, which drove quarterly and annual increases of 18% and 13%, respectively.
The resilience in office demand has occurred amid the complex broader economic landscape. Office-using employment declined year-over-year by 0.5% and by 2% since the end of 2022. While a decrease in office-using employment typically corresponds to lower demand for physical space, it also increases employer bargaining power related to remote work, according to VTS.
“Although tested against a turbulent backdrop, demand for office space has seen an exceptional start to the year, with remarkable double-digit quarterly and annual increases in demand,” said Nick Romito, CEO of VTS. “What perhaps is most notable about this quarter’s positive performance is that it was led not just by tech’s sustained AI boom, but also by finance and legal companies entering the market as well.”
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