The most recent VTS Green Shoots report for the office sector was tepid, coming on the heels of two significant rate hikes by the Fed and eye-popping increases in the consumer price index. 

The national VTS Office Demand Index was 63 in June after remaining stable for several quarters, with tenant demand 6% higher year to date, year over year. But “VODI’s point drop from 68 in June put the change of new tenant requirements into the red (-3%) YTD over 2021 YTD through June,” the report notes. “Down significantly from pre-Covid averages, this month’s downtick in VODI demand puts the spotlight on the recent macro decline and calls into question the near-term direction of tenant demand.”

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