Office demand in the tech sector surged in 2025 and was the primary driver of growth nationally, according to the latest VTS Office Demand Index (VODI) report. Most notably, the tech-dominated markets of Seattle and San Francisco experienced meteoric rises in office demand, with year-over-year growth overall of 46% and 45%, respectively. The spike in tech-driven demand comes as the industry continues to experience a major boom led by companies in the AI space.
The tech-driven increase in demand masks muted growth nationally. Looking at the larger office market across all industries, demand was up 6% over 2024 levels. This contrasts sharply against the steep rise of tech demand nationally in 2025, which rose 87% on an annual basis. T
“Red-hot growth from tech companies in the AI space defined office demand for the year, with cities that are major tech hubs, such as Seattle and San Francisco, benefitting the most, and as a result saw office demand swell considerably,” said Nick Romito, CEO of VTS. “However, the story doesn’t end there, with five of our seven markets seeing annual tech demand increases of 50% or more. The tech renaissance really is the standout headline of the year, especially considering the industry’s continued inclination towards remote work in recent years.”
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