Office Investment Activity Picked Up in Q1 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.

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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 so far 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