2025 Office Investment Update
Property prices rose 15 percent compared to the first quarter, according to Yardi Research Data.
In the second quarter of 2025, office transactions reached $8.3 billion, according to the latest Yardi Research Data. A total of 274 deals closed, amounting to 38.3 million square feet of space changing ownership.
On a year-over-year level, the market’s total transaction volume dropped 9.8 percent, with last year’s second quarter comprising $9.2 billion in sales across 569 transactions and including 60 million square feet. During 2025’s second quarter, there was a 56.6 decrease in square footage sold, compared to the same period of last year.
Office prices increase quarter-over-quarter
Meanwhile, office assets traded at an average of $213.53 per square foot in the second quarter—up 15.4 percent from $185.03 in the previous quarter. Despite fewer transactions and lower overall square footage traded, the average price per square foot is also 35.6 percent higher than the same period last year, when assets sold for $157.43 per square foot.
In the first half of the year, 893 sales involving 112.9 million square feet office changed hands, generating a total of $19.6 billion in office sales volume. Properties traded at an average sale price of $194.16 per square foot.
—Posted on July 29th, 2025
In the first quarter of 2025, office sales totaled $10.1 billion with 486 deals closing and 61.6 million square feet changing hands, the latest CommercialEdge data shows.
Compared to the previous year’s first-quarter data, even if the number of deals was similar—485 transactions—the amount of dollar volume and square footage that transacted was lower during this period, marking a positive growth in the sector so far in 2025.
This marked a 48.5 percent increase over the $6.8 billion recorded in the first quarter of 2024, along with a 27.8 percent rise in square footage compared to the 48.2 million square feet of office space that changed hands.
READ ALSO: What’s Defining Office in 2025?
At the end of this year’s first quarter, office assets traded at an average sale price of $181.46 per square foot. This represents a 13.7 percent increase from the $159.56 per square foot recorded at the end of 2024’s last quarter.
Room for growth
Last year ended with 2,382 transactions generating $43 billion, across 264.4 million square feet of space that was sold at an average price of $179.91 per square foot. This year’s total added up to 495 deals involving 62.6 million square feet, with the total office sales volume reaching $10.3 billion and an average sale price of $183.41 per square foot.
So far in the second quarter of 2025, there were nine deals involving 1 million square feet of space, according to CommercialEdge. The average sale price per square foot in the second quarter stands at $536,74 per square foot—significantly above the average $158.78 per square foot recorded at the end of 2024’s second quarter.
—Posted on April 30th, 2025
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