
The national VODI fell by 6 VODI points, or 11.5 percent, from 52 in July to 46 in August, its lowest level since February 2021.
Demand for office space in NYC has reached its lowest level since February 2021 and is now 44% below its pre-pandemic pace, according to VTS.
What is Flex? According to Cambridge it’s a verb that means “to bend” or “to change something slightly to make it more suitable.”
The real estate world is desperately trying to be flexible and ‘bend’ in order to retain clients. The days of buying a building and carving buildings up into sections and demanding 20 year leases is over. They’re repacking their tired product to make it “more suitable.”
The market is still slumping, with data from Kastle Systems from August showing that US occupancy is somewhere between 43% to 44%, a level it’s been hovering since April. That figure is below 40% in San Francisco and San Jose. And in addition to a record amount of sublease space hitting the market, nearly 243 million square feet of office leases are set to expire in 2022, representing roughly 11 percent of office inventory in the US, according to Colliers. The widespread adoption of hybrid work is expected to cause a 15% drop in office space demand nationally.
