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Despite the war with Iran and continued economic uncertainty in the U.S., demand for office space is recovering at a strong clip.
In the first quarter of this year, new in-person and virtual office tours reached their highest level since the pandemic began, as measured by the VTS Office Demand Index. The index is a future indicator of lease signings about a year or more out.
The index rose 18% from the fourth quarter 2025 and 13% from the same quarter one year ago.
“Although tested against a turbulent backdrop, demand for office space has seen an exceptional start to the year,” Nick Romito, CEO of commercial real estate software company VTS, said in a release. “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.”
