Office demand in the tech sector emerged as the primary driver of national growth in 2025, according to the latest Q4 VTS Office Demand Index (VODI) report. After years of stagnation due to widespread remote work following the pandemic, demand for office space surged in tech-heavy markets, with Seattle and San Francisco leading the charge. Both cities recorded year-over-year growth in office demand near 50 percent—46 percent in Seattle and 45 percent in San Francisco—highlighting the transformative impact of the AI boom on commercial real estate. While overall office demand across all industries rose only 6 percent compared to 2024, tech sector demand skyrocketed by 87 percent annually. This dramatic shift underscores how the AI revolution has reshaped corporate real estate strategies. In most major markets, tech-driven demand outpaced other industries, with all cities except Los Angeles and Boston seeing double-digit growth in tech demand, and five of the seven tracked markets recording increases of 50 percent or more. New York remained the top-performing market overall, with a VODI of 77—77 percent of its pre-pandemic demand level. San Francisco climbed to second place with a VODI of 68, propelled by its strong year-end performance. Despite Seattle’s impressive 46 percent year-over-year growth, it ranked near the bottom with a VODI of 48, reflecting its low base following years of weak demand. Chicago led in quarterly growth during Q4, posting a 43 percent rise in demand for the year, while Boston ended last with a VODI of 38—the lowest among the seven markets—and saw a steep 32 percent decline in Q4, though it still finished the year with 15 percent growth overall. Boston was also one of only two markets where tech demand did not increase in 2025. Nick Romito, CEO of VTS, noted that the AI-driven resurgence in tech has redefined office demand, with companies scaling rapidly and committing to larger spaces earlier than in past cycles. This accelerated pace has compressed leasing timelines and forced landlords to adapt quickly. Ryan Masiello, Chief Strategy Officer at VTS, added that the divergence between markets is now starkly tied to the concentration of AI-focused companies, with cities benefiting most from the tech renaissance. The data reflects a broader trend: the real estate market is no longer defined by broad national patterns but by the pace of innovation in key industries. With AI companies expanding aggressively, office demand in tech hubs is not just recovering—it’s surging.