Quick Takeaways

  • A six month growth streak in the office market was broken in July as the United States saw an increase in the Delta variant
  • The VTS Office Demand Index (VODI) is 16% below its 2018-2019 level, though in a year-to-year comparison, it is up 282%, showing strong signs of recovery from 2020
  • Though the Delta variant has shifted the market, experts do not believe that it will reach early pandemic levels – for now, the advice is not to panic.

Source: US Office Market Statistics, Trends & Outlook (JLL, Jul. 21, 2020)

The COVID-19 pandemic and the resulting work-from-home orders have greatly affected every facet of real estate, and many office buildings are taking on new lives. Both employers and developers have had to get creative, enticing people back to the office with improved safety precautions and luxury amenities. The recent uptick of the Delta variant has slowed the market back down after a hopeful looking spring and summer, but experts do not expect the market to slow to a 2020 level.

Co-working has also taken on a whole new life post-pandemic. Though many are not eager to share space with strangers, it has also provided dedicated work space in a year (almost two) when our homes became our offices, gyms, and schools. WeWork and four other co-working companies have just signed a contract with the federal government, the first of its kind.

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