New York leads 2024 office demand outlook, San Francisco tech sector lags: VTS
New global office demand data from VTS forecasts that New York City will hit 30 million square feet of office leasing in 2024. VTS Co-Founder & Chief Strategy Officer Ryan Masiello joins Market Domination Overtime to discuss commercial real estate trends and what they suggest for the broader market. Masiello signals that New York represents a market where the headlines do not meet the reality of what is happening on the ground: the city has led office demand recovery since the onset of the pandemic, he claims. The VTS co-founder explains that the firm's modeling looks across 13 billion square feet of office space managed on the VTS platform. According to this data, Masiello says San Francisco's office demand is showing signs of resilience, though the tech sector is 60% behind its pre-COVID office capacity. If interest rates come down, "tech companies can start growing again," Masiello adds. With the shift to hybrid and virtual labor, office footprints have shrunk only by about 6% from pre-COVID levels, Masielo says. Such work policies aren't impacting the size of companies' office footprints, he adds. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. Editor's Note: This article was written by Gabriel Roy.