2026 Office Net Lease Sales Volume and Cap Rates

The single-tenant office sector posted $2.5 billion in first-quarter sales volume, down 21.9 percent from the previous quarter and 20.1 percent year-over-year. Cap rates dipped lower, falling 6 basis points to 7.23 percent, up 1 basis point from a year ago.

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The West region led transaction activity for the quarter, recording $547.9 million in volume and accounting for 22.2 percent of total sales. The Mid-Atlantic followed with $543.3 million, representing 22.0 percent of overall volume. The Midwest ranked third with $405.9 million, or 16.4 percent, while the Southeast recorded $383.8 million, representing 15.6 percent. The Southwest contributed $330.0 million, or 13.4 percent of total volume, while the Northeast region trailed with $256.9 million, accounting for 10.4 percent.

Cap rates by region

By region, cap rates ranged from a low of 6.48 percent in the West to a high of 8.35 percent in the Midwest. Cap rates trended down in all regions, except the Northeast and West. Average cap rates are up 115 basis points from the recent low of 6.08 percent recorded in the first quarter of 2022.

Private buyers accounted for 46 percent of single-tenant office acquisitions through the first quarter, followed by institutional investors at 40 percent. The institutional share increased sharply by 17 percent from 2025, while private investment activity declined 9 percent over the same period. REIT/Listed acquisitions rose from 4 percent of investment activity in 2025 to just 10 percent as of the first quarter of 2026.

—Posted on July 24, 2025